To

Mayor and Council

Subject

CBA Lease Revenue Bonds, Series 2003

Initiator

Finance Department

Recommendation

Approve a Resolution authorizing the Mayor, City Manager, and other City \n \n officials to take such actions pertaining to the following projects as is \n \n necessary in furtherance of the Council=s expressed desire to proceed with the \n \n financing of such projects through the Columbus Building Authority Series 2003 \n \n Lease Revenue Bond Issue. The projects are as follows: 2 fire stations, storm \n \n water enhancements, road/streets resurfacing and reconstruction, Parking \n \n Garage-Trade Center/Hotel, Parking Garage Bay Avenue, Surface Parking Lot - \n \n Front Avenue, and Trade Center Renovation/Expansion. The approximate amount of \n \n bonds to be issued is $44,200,000 (exclusive of issuance costs).

Approval

Approved

Background

A series of projects were identified as part of the FY 2003 budget review

process and have been discussed at subsequent meetings. The project

descriptions and estimated bonds to be issued (exclusive of issuance costs) are

listed below.

2 Fire Stations - $2,000,000 This project consists of constructing and

equipping fire station # 16- two bay with ambulance and fire station #9 - three

bay with ambulance. These two fire stations are a necessary to fulfill the

City?s ISO requirements. Approximate Bonds to be issued - $2,000,000.



Storm Water Enhancements - $16,500,000 This project consists of storm water

infrastructure enhancements in the Old Town Basin, the area formerly known as

Bibb City, and other parts of Muscogee County. Existing studies have

determined that there are critical deficiencies in the existing storm water

infrastructure throughout Muscogee County. The scope of work includes

planning/study, design and construction of the storm water system

enhancements. Approximate Bonds to be issued - $16,500,000.



Road and Street Resurfacing/Reconstruction - $6,000,000 This project consists

of resurfacing and/or reconstruction of approximately 80 miles of local

roads, streets and/or bridges. This project will address a backlog of roads,

streets, and bridges that have been identified as needy. This funding source

will supplement other available funding sources for this project. The City

will resurface and/or reconstruct approximately 25+- miles per year until bond

proceeds are exhausted. The roads, streets, and bridges that will be resurfaced

or reconstructed have been identified as candidates in the Pavement Management

System for resurfacing and/or reconstruction based on Georgia Department of

Transportation and other pavement management criteria. Approximate Bonds to

be issued - $6,000,000.



800 MhZ Tower - $1,500,000 This project consists of land acquisition,

constructing, and equipping an 800 MHz radio tower for the City?s prime

transmission site for the existing 800 MHZ Radio System. The City currently

leases tower space on the WXTX TV tower. The installation of a new radio tower

will save the City the annual lease fee and provide the opportunity for the

City to lease tower space to commercial users. Approximate Bonds to be issued

is $1,500,000. Approximate Bonds to be issued - $1,500,000.



Parking Garage -Trade Center - $3,500,000 This project consists of

constructing and equipping a 300 car parking garage to be operated and

maintained by the Consolidated Government. The garage will be located in

Downtown Columbus adjacent to an existing hotel and will be used by hotel

patrons, Trade Center patrons, and the general public. The additional parking

space is a part of the overall plan for improvements that support the Trade

Center expansion and other parking requirements in the Downtown area.

Approximate Bonds to be issued- $3,500,000 (taxable).



Parking Garage - Bay Avenue Area - $6,200,000 This project consists of

constructing and equipping an approximate 780 car parking garage to be operated

and maintained by the Consolidated Government. The garage will be located on

Bay Avenue for use by adjacent office buildings and the general public. The

approximate location for this parking garage is identified in the City?s

parking study. (Debt service is guaranteed thru an MOU with the W.C. Bradley

Company) Approximate Bonds to be issued - $6,200,000 (taxable).



Parking Lot/Deck ? Front Avenue - $500,000 This project consists of

constructing and equipping an approximate 70 space surface lot/deck to be

operated and maintained by the Consolidated Government. The parking lot will

be located on Front Avenue and will be used by the general public. This lot is

part of the Downtown Redevelopment Plan to mitigate the loss of parking spaces

along Broadway. Approximate Bonds to be issued - $500,000.



Skate Park Supercenter - $3,000,000 This project consists of constructing and

equipping a state of the art regional Skate Park SuperCenter for the general

public to include various types of ramps, rails, pipes, etc. for skateboarding,

in-line skating, and BMX biking. The project also consists of an ice rink to

be used by the general public, youth and adult hockey leagues and as an

alternate practice site for professional hockey when hockey practice conflicts

with other Civic Center events. The SuperCenter would be a covered structure

that will allow for use 365 days a year. It would include a pavilion,

playground, and a ProShop. Approximate Bonds to be issued - $3,000,000

Columbus Georgia Convention & Trade Center - $5,000,000 This project consists

of major new additions to the existing complex comprising of approximately

115,000 square feet and the renovation of the existing 180,000 square feet for

a total 295,000 square feet. Included in this is more than 182,000 square feet

of meeting space in addition to 113,000 square feet of support area to include

food preparation, storage, mechanical and electrical equipment. The project

also creates exterior patios, walks, fountains and green space. The project

will be constructed in two phases consisting primarily of new construction to

the west of the existing facility followed by additions and renovations to the

existing building. The appr. project cost of $35-m is being funded from state

and local funding in addition to these bond proceeds. (Debt Service will be

repaid from beer tax) Approximate Bonds to be issued - $5,000,000

Analysis

The proposed time line tasks from October 9 ? January 1, 2003 are to draft the

Master Bond Resolution for Council Adoption (legal requirements, funding

requirements, lease requirements); draft the Preliminary Official Statement

(POS); Apply for cusip numbers; Rating agency site visits- S & P and Moody=s;

Notification of Sale; Mail POS; Pre-sale marketing and publishing of NOS; Bids

and validation; closing.



Specific Council approval will be obtained through adoption of the Master Bond

Resolution and Lease Agreement prior to the sale of bonds on or about January

1, 2003

Financial Considerations

The proposed funding plan is based on current market plus 25 basis points

assumptions and is subject to change based on the market conditions at the time

of issuance. The plan calls for a term of 30 years with interest only payments

in FY 04 and FY 05 in an approximate amount of $2,292,584 per year, and the

first principal repayment in FY 06. The bonds will be structured with a

standard call feature. The annual debt service requirements for the Bay Avenue

Parking Garage will be repaid from guaranteed lease revenue from a MOU with

W.C. Bradley, Inc. The annual debt service requirements for the Trade Center

renovation/expansion will be repaid from the beer tax that the Trade Center

receives. The balance of the annual debt service payments will require an

increase in the debt service millage of approximately 0.43 mills in FY 04 . In

future years the millage requirement to service this debt will range from 0.29

mills in FY 05 to 0.55 mills in FY 06 and beyond. FY 06 and beyond do not take

into consideration growth in the digest which will require a lower millage rate

once that is factored in.

Projected Annual Fiscal Impact Statement

Legal Considerations

Council action is required to authorize the Columbus Building Authority to

issue the Series 2003, Lease Revenue Bonds.

Recommendations/ Actions

Approve a Resolution authorizing the Mayor, City Manager, and other City

officials to take such actions pertaining to the following projects as is

necessary in furtherance of the Council=s expressed desire to proceed with the

financing of such projects through the Columbus Building Authority Series 2003

Lease Revenue Bond Issue. The projects are as follows: 2 fire stations, storm

water enhancements, road/streets resurfacing and reconstruction, Parking

Garage-Hilton, Parking Garage Bay Avenue, Surface Parking Lot - Front Avenue,

and Trade Center Renovation/Expansion. The approximate amount of bonds to be

issued is $44,200,000 (exclusive of issuance costs).





A RESOLUTION

NO. ___________



A RESOLUTION OF THE COUNCIL OF COLUMBUS, GEORGIA, AUTHORIZING THE MAYOR, CITY

MANAGER, FINANCE DIRECTOR, AND OTHER OFFICIALS OF COLUMBUS TO TAKE SUCH ACTIONS

AS IS NECESSARY FOR THE FINANCING OF CERTAIN CAPITAL OUTLAY PROJECTS TO BE USED

FOR THE GOVERNMENTAL, PROPRIETARY, AND ADMINISTRATIVE PURPOSES OF COLUMBUS; TO

REQUEST THAT THE COLUMBUS BUILDING AUTHORITY TAKE ANY PRELIMINARY STEPS

NECESSARY FOR THE ISSUANCE OF COLUMBUS BUILDING AUTHORITY LEASE REVENUE BONDS

IN THE AGGREGATE PRINCIPAL AMOUNT OF APPROXIMATELY $44,200,000, EXCLUSIVE OF

THE COSTS OF ISSUANCE; TO DECLARE THE OFFICIAL INTENT OF COLUMBUS TO BORROW FOR

SUCH PROJECTS, AND FOR OTHER PURPOSES.



WHEREAS, the Council of Columbus, Georgia (the "Council") desires to

finance various capital outlay projects to be used in the performance of its

governmental, proprietary, and administrative purposes, including specifically,

the acquisition, construction, and equipping of two fire stations, a skateboard

park, two parking garages, a surface parking lot/deck, an 800 MHz tower,

stormwater enhancements and road resurfacing projects, and the renovation and

expansion of the Columbus, Georgia Convention and Trade Center (the

"Projects"); and



WHEREAS, it is necessary and proper for Council to authorize the Mayor, City

Manager, Finance Director, and other officials to take such actions relating to

the Projects as shall be necessary to develop and proceed with a plan of

financing for the same; and



WHEREAS, it is necessary and proper that the Council request that the Columbus

Building Authority (the "Authority") issue its Columbus Building Authority

Lease Revenue Bonds (the "Bonds") to provide funds for the Projects, in

accordance with the purposes for which the Authority has been created; and



WHEREAS, Columbus anticipates such Bonds will need to be sold on or about

January 1, 2003; and



WHEREAS, prior to issuance of the Bonds, Columbus reasonably expects to expend

funds on the acquisition, construction, and equipping of the Projects and

wishes to be reimbursed for such expenditures with Bond proceeds.



NOW, THEREFORE, BE IT RESOLVED by the Council of Columbus, Georgia, as follows:



1. The Council of Columbus desires to proceed with financing for the Projects

through the issuance of lease revenue Bonds by the Columbus Building

Authority.



2. The Mayor, City Manager, Finance Director, and other officials are hereby

authorized to take such actions as are necessary to make reasonable estimates

for the costs of the Projects, and determine the structure of the financings to

allow for the sale of the Bonds on or about January 1, 2003.



3. Prior to the issuance of the Bonds, Columbus reasonably expects to expend

funds for the acquisition, construction, and equipping of the Projects, and

Columbus wishes to be reimbursed for such expenditures from Bond proceeds.

Therefore, Council, pursuant to Treasury Regulations Section 1.150-2 hereby

declares its official intent to issue Bonds in the principal amount set forth

in the caption of this resolution, together with such amounts as may be

necessary to pay for the cost of issuance of such Bonds and to reimburse

original expenditures on the Projects not to exceed $5,000,000 with proceeds

from the sale of the Bonds. Original expenditures for the Projects shall be

paid from a construction or other account maintained by Columbus.



4. Council understands that a portion of the Bonds may be issued as taxable

lease revenue bonds depending on the uses of certain portions of the Projects.



5. Upon finalizing plans for the proposed financing, the Council will adopt a

specific request to the Authority relating to the issuance of the Bonds and

will authorize the execution of such lease agreements and other documents as

may be necessary for the Authority to provide for the issuance and delivery of

Bonds.



INTRODUCED at a regular meeting of the Council of Columbus, Georgia, held on

the 8th day of October, 2002, and adopted at said meeting by the affirmative

vote of members of said Council.



Councilor Allen voting _____________________



Councilor Davis voting _____________________



Councilor Henderson voting



Councilor Hunter voting _____________________



Councilor McDaniel voting _____________________



Councilor Rodgers voting



Councilor Smith voting _____________________



Councilor Suber voting _____________________



Councilor Turner Pugh voting _____________________



Councilor Woodson voting _____________________



_________________________________ _____________________________

Tiny B. Washington, Clerk of Council Bobby G. Peters, Mayor

No attachments for this document.