Explanation
Background: This legislation authorizes the appropriation and transfer of $10,988,166.00 from the Debt Retirement Fund, Fund 4430 Subfund 443001 to the Debt Retirement Fund, Fund 4430 Subfund 443009. The appropriation and transfer of $10,988,166.00 between such subfunds provides the backing, as stipulated in the City's lease agreement with the Franklin County Convention Facilities Authority (CFA), for certain CFA debt obligations. The actual transfer of these funds will only occur if the CFA is unable to meet its debt obligations as outlined in its lease with the City. The City provides fifty percent of this backing, while Franklin County is responsible for the other fifty percent. Since 1990, no such payments have been needed, nor are any anticipated.
In connection with the issuance of the CFA’s $160,000,000.00 Lease Revenue Anticipation Bonds, Series 2010 (County of Franklin, Ohio, Lessee) (Federally Taxable -Build America Bonds - Direct Payment), dated February 10, 2010, the City entered into a Cooperative Agreement with the CFA and the County of Franklin, Ohio dated as of January 1, 2010, which, among other things, requires appropriation of a portion of the City’s Parking Meter Revenue, in an amount of $1,400,000.00, as consideration for certain commitments under the Cooperative Agreement and its related documents. The payment of these funds to the CFA will only occur if the CFA is unable to meet its debt obligations as outlined in the Cooperative Agreement.
In 2019, the City entered into a Lease Agreement and Sub-Lease Agreement with the CFA and Franklin County, Ohio (Ordinance No. 2815-2019) in connection with the issuance of the hotel expansion bonds. The agreement allowed the CFA to issue the 2019B Lease Appropriation bonds. These bonds are to provide additional funding for the downtown convention center hotel expansion. The City along with Franklin County will provide the backing for these bonds. The City provides fifty percent o...
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