To

Mayor and Council

Subject

Columbus Building Authority Lease Revenue Bonds, Series 2004

Initiator

Finance Department

Recommendation

Approve a Resolution authorizing the Mayor, City Manager, and other City \n \n officials to take such actions in furtherance of the Councilors expressed \n \n desire to proceed with the financing of the expansion and renovation of the \n \n Columbus, Georgia Convention and Trade Center through the Columbus Building \n \n Authority Series 2004 Lease Revenue Bond Issue. The approximate amount of \n \n bonds to be issued is $22,000,000 (exclusive of issuance costs).

Approval

Approved

Background

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 new construction phase is complete

and the renovations to the existing building are underway. The approximate

project cost of $35-m is being funded from state and local funding in addition

to these bond proceeds. The local funding in the amount of $10-m in the form

of $5,000,000 SPLOST proceeds and $5,000,000 Columbus Building Authority Lease

Revenue Bonds, Series 2003 has been completed. This bond issue is to provide

the balance of the funds previously committed by the State of Georgia to this

project.

Analysis

The proposed time line tasks from October 14 ? January 1, 2004 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, 2004

Financial Considerations

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

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

of issuance. The bond structure is a term of 30 years with capitalized

interest in FY 05 in an approximate amount of $1,172,704, and the first

principal repayment in FY 06. Average annual debt service will be

approximately $1,593,778 except for year one. The bonds will be subject to a 3

year call feature in the event that some state funding does come through. The

annual debt service payments will require an increase in the debt service

millage of approximately 0.30 mills in FY 06 . In future years the millage

requirement to service this debt will range from 0.29 mills in FY 07 to 0.39

mills in FY 09 and beyond. FY 06 and beyond do not take into consideration

growth in the digest or any other changes that would reduce the millage rate.

Projected Annual Fiscal Impact Statement

Legal Considerations

Council action is required to authorize the Columbus Building Authority to

issue the Series 2004, Lease Revenue Bonds.

Recommendations/ Actions

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

officials to take such actions in furtherance of the Council's expressed desire

to proceed with the financing of the expansion and renovation of the Columbus,

Georgia Convention and Trade Center through the Columbus Building Authority

Series 2004 Lease Revenue Bond Issue. The approximate amount of bonds to be

issued is $22,000,000 (exclusive of issuance costs).

No attachments for this document.