To

Mayor and Council

Subject

Columbus Building Authority Lease Revenue Bonds, Series 2004

Initiator

Finance Department

Recommendation

Approve a Resolution requesting the Columbus Building Authority (Authority) \n \n issue its Lease Revenue Bonds, Series 2004 in the maximum aggregate principal \n \n amount of $24,000,000 in furtherance of the purposes of Resolution No. 474-03 \n \n and this resolution; to authorize the execution of a first amendment to lease \n \n between Columbus, Georgia (Columbus) and the Authority; to authorize the \n \n preparation and distribution of a preliminary official statement and to \n \n authorize the execution of a final official statement containing information on \n \n the governmental and financial affairs of Columbus; to provide that the Finance \n \n Director of Columbus shall approve the best bid for the Series 2004 Bonds; to \n \n authorize the transfer of property to the Authority; to authorize the Mayor and \n \n other officials of Columbus to take such further actions as necessary to \n \n provide for the issuance and delivery of the Series 2004 Bonds; and for other \n \n purposes.

Approval

Approved

Background

Resolution No. 474-03 adopted on October 14, 2003 authorized actions

pertaining to obtaining financing of construction and renovations at the

Columbus Georgia Convention and Trade Center through the Columbus Building

Authority. 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 funding plan is based on current market assumptions and will

adjust to current market on date of issuance. The Series 2004 bonds are

structured in a tax exempt series with a 30 year term and will be sold

competitively on or about January 2004.

Financial Considerations

Interest will be capitalized for 12 months from the date of issuance. 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 becomes available. The annual debt service payments will require an

increase in the debt service milage of approximately 0.30 mills in FY05. In

future years the milage 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 milage 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 requesting the Columbus Building Authority (Authority)

issue its Lease Revenue Bonds, Series 2004 in the maximum aggregate principal

amount of $24,000,000 in furtherance of the purposes of Resolution No. 474-03

and this resolution; to authorize the execution of a first amendment to lease

between Columbus, Georgia (Columbus) and the Authority; to authorize the

preparation and distribution of a preliminary official statement and to

authorize the execution of a final official statement containing information on

the governmental and financial affairs of Columbus; to provide that the Finance

Director of Columbus shall approve the best bid for the Series 2004 Bonds; to

authorize the transfer of property to the Authority; to authorize the Mayor and

other officials of Columbus to take such further actions as necessary to

provide for the issuance and delivery of the Series 2004 Bonds; and for other

purposes

No attachments for this document.