Columbus Building Authority Lease Revenue Bonds, Series 2003
Initiator
Finance Department
Recommendation
Approve a Resolution requesting the Columbus Building Authority issue its Lease \n \n Revenue Bonds, Series 2003A and Series 2000B in furtherance of Resolution \n \n 564-02 and to authorize execution of a lease contract between Columbus and the \n \n Authority; to ratify preparation and distribution of the preliminary official \n \n statement and to authorize execution of the final official statement; to \n \n provide for the approval by the Finance Director the best bid for the 2003 \n \n Bonds; to authorize the Mayor and other officials of Columbus to take such \n \n further actions as are necessary to provide for the issuance and delivery of \n \n the Series 2003 Bonds.
Approval
Approved
Background
Resolution No. 564-02 adopted on October 8, 2002 authorized actions pertaining
to obtaining financing of projects through the Columbus Building Authority.
The projects are as follows:
2 Fire Stations - $2,300,000 This project consists of constructing and
equipping two fire stations. The tentative fire station are # 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 - $2,300,000.
Storm Water Enhancements - $16,200,000 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 - $16,200,000.
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 an approximate 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 (Series B).
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 (Series B).
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 funding plan is based on current market assumptions and will
adjust to current market on date of issuance. The Series 2003 bonds are
structured in a tax exempt series and a taxable series, Series A and Series B,
respectively with a 30 year term and will be sold competitively on or about
January 15, 2003. The approximate amount of tax exempt Series A Bonds to be
issued is $37,440,000. The approximate amount of taxable Series B Bonds to be
issued is $10,640,000.
Financial Considerations
Interest will be capitalized for 12 months from the date of issuance with
interest only payments in FY 04 and FY 05 in an approximate amount of
$2,409,043 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 0.30 mills in FY 05 to 0.65 mills in FY 06
and beyond. FY 06 and beyond do not assume any growth in the digest. Future
millage rate requirements may be reduced by digest growth.
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 requesting the Columbus Building Authority issue its Lease
Revenue Bonds, Series 2003A and Series 2003B in furtherance of Resolution
564-02 and to authorize execution of a lease contract between Columbus and the
Authority; to ratify preparation and distribution of the preliminary official
statement and to authorize execution of the final official statement; to
provide for the approval by the Finance Director the best bid for the 2003
Bonds; to authorize the Mayor and other officials of Columbus to take such
further actions as are necessary to provide for the issuance and delivery of