Explanation
Background: The RiverSouth Authority issued bonds in 2004 and 2005 to purchase and rehabilitate the former downtown Lazarus Department Store. The City entered into a Master Lease Agreement and a First Supplemental Lease Agreement with The RiverSouth Authority on June 21, 2004 (Ordinance No. 1009-2004). The City entered into a Second Supplemental Lease Agreement with The RiverSouth on July 25, 2005 (Ordinance No. 1312-2005). These agreements call for the City to make lease payments to The RiverSouth in annual amounts equal to the bond service charges.
Fiscal Impact: Funds are available in the 2008 Capital Improvement Budget.
Title
To authorize the appropriation of $2,889,263.76 from the Special Income Tax Fund to the City Auditor; to authorize the City Auditor to transfer said funds from the Special Income Tax Fund to the Northland and Other Acquisitions Fund; and to authorize the Director of the Department of Development to expend up to $2,889,263.76 from the Northland and Other Acquisitions Fund for 2008 lease rental payment to The RiverSouth Authority Section 55(B) of the City Charter. ($2,889,263.76)
Body
WHEREAS, pursuant to Ordinance No. 1009-2004 adopted by City Council on June 21, 2004 the City entered into a Master Lease Agreement and a First Supplemental Lease Agreement with the RiverSouth Authority (RiverSouth); and
WHEREAS, pursuant to Ordinance No. 1312-2005 adopted by this Council on July 25, 2005 the City entered into a Second Supplemental Lease Agreement with RiverSouth; and
WHEREAS, these Lease Agreements call for the lease rental payments from the City to RiverSouth equal to the bond service charges on the following bonds issued by RiverSouth:
· RiverSouth Areas Redevelopment 2004 Bonds Series A
· RiverSouth Areas Redevelopment 2005 Bonds Series A; and
WHEREAS, these lease rental payments are due to The RiverSouth Authority starting on May 22, 2008 and again on November 21, 2008; and
WH...
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