Adopt Resolution #15-04-101 Authorizing the Call of the Outstanding Taxable General Obligation Tax Increment Bonds, Series 2012B (Flaherty & Collins (F&C) -Residence at the COR Project)

Purpose:
When the General Obligation Tax Increment Bond in the amount of $7.32M was issued in 2012 on behalf of the F&C-Residence at the COR project, the bond provided for an early call date of June 1, 2015 to match when the city was to be taken out of its Note #2 by F&C. 

Background:
With the sale and closing of the Residence at the COR scheduled for April 9, 2015, the city will be receiving the funds from F&C for their principal payment of Note #2 and applicable interest.  The designated amount of funds required to pay off the outstanding bond will be deposited in a trust account until the June 1, 2015 date.

The attached resolution that needs to be adopted is a formality that outlines that the city has the funds to call the outstanding bond.  You will note that the amount listed in the resolution states the prepay (early call) amount of $7,145,000.  This figure represents the outstanding principal amount attributed to years 2016-2024.  The 2015 payment of $175,000 (to bring the total principal amount of the debt to $7.32M) is considered a current principal payment that would have required payment on June 1, 2015 and and not considered an early payment.

No alternatives.  Adopting the resolution is required to call the bonds early, which was the purpose of the call feature date matching the payoff date in F&C's development agreement of June 1, 2015.

Funds to pay off the debt will be provided from the payoff principal and interest of Note #2 with F&C for the Residence at the COR project.

Staff recommends adopting Resolution #15-04-101.

Motion for council to adopt Resolution #15-04-101 authorizing the call of the outstanding taxable General Obligation Tax Increment Bonds, Series 2012B related to the F&C-Residence at the COR Project.