Title
Resolution No. UR13-01 Authorizing the Issuance of Urban Renewal Revenue Bonds, Series 2013, to Refinance Urban Renewal Revenue Bond Anticipation Note, Series 2010 (Line of Credit).
Body
RECOMMENDED ACTION (Motion):
Staff recommends the City Commission approve Resolution No. UR13-01 authorizing the issuance of Urban Renewal Revenue Bonds, Series 2013 in an amount not to exceed $3.5 Million to refinance Urban Renewal Revenue Bond Anticipation Note, Series 2010.
BACKGROUND:
On November 4, 2009 the Oregon City Urban Renewal Commission (Commission) approved Resolution UR09-05 to authorize a non-revolving line of credit in an amount not to exceed $10 million. The terms of the line allowed draws for a one year period to support the Commission's direction relating to development in the Clackamette Cove Area (Cove). During the draw period, the Commission borrowed $3,446,400 for the purchase of two Cove land parcels and the developer work product. An additional $7 million in draws was originally anticipated for construction of City infrastructure and did not occur. The line of credit expires February 1, 2013 and is not renewable. U.S. Bank National Association (Bank) has offered to refinance the line with fixed terms. Three additional lenders were contacted and declined to offer.
The Urban Renewal Revenue Bonds, Series 2013 would include taxable and tax exempt series allowing the bank to provide better terms on funds that were spent for public purposes. Interest rates are based on a margin over the banks cost of funds to be determined at signing. The rates included in the attached draft documents are estimates based on the banks cost of funds at the time of the offer and confirmed on January 9, 2013. Under the resolution, the rates are not allowed to exceed 3.10% for the tax-exempt bonds and 5.00% for the taxable bonds. The origination fee is $7,000. Other terms include a ten year maturity from the date of closing with interest payments due semi-annually and prin...
Click here for full text