Explanation
Background: In 2016, the City, as lessee, and The RiverSouth Authority (the “Authority”), as lessor, entered into a Master Lease Agreement and First Supplemental Lease Agreement in connection with the Authority’s issuance of its $27,515,000 Scioto Peninsula Area Redevelopment Bonds, Series 2016, (the “2016 Bonds”), to pay for the cost of construction of an approximately 600-space underground public parking garage and related recreational park on the Scioto Peninsula. In 2017, a Second Supplemental Lease Agreement was entered into to deliver the completed project to the City and establish its operational framework, rights, and responsibilities. Interest rates for bonds are now at a level which makes it advantageous to refund all or a portion of the outstanding 2016 Bonds. This ordinance authorizes the City to enter into a Third Supplemental Lease Agreement with the Authority to allow the Authority to issue refunding bonds to refund all or a portion of the 2016 Bonds and realize debt service savings.
Emergency Justification: Emergency action is requested in order to allow for timely issuance of the refunding bonds by the Authority as contemplated by the Third Supplemental Lease Agreement at the most advantageous interest rates thereby also financially benefiting the City through debt service savings.
Fiscal Impact: No funding is required for this legislation. The refunding will generate debt service savings over the remaining life of the bonds.
Title
To authorize the Director of the Department of Development to enter into a Third Supplemental Lease Agreement with The RiverSouth Authority in connection with the issuance of refunding bonds to refund all or a portion of the Authority's Scioto Peninsula Area Redevelopment Bonds, Series 2016; and to declare an emergency. ($0.00)
Body
WHEREAS, The RiverSouth Authority (the “Authority”) was created by Columbus City Council as a new community authority pursuant to Chapter 349 of the Ohio Revised Co...
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