Explanation
Background: In 2004, the City, as lessee, and The RiverSouth Authority (the “Authority”), as lessor, entered into a Master Lease of real property underlying the Lazarus Building on South High Street. The lease rental payments under this Master Lease and a First Supplemental Lease supported the issuance by the Authority of its $37,870,000 RiverSouth Area Redevelopment Bonds, 2004 Series A (the “2004 Bonds”), to pay for the cost of acquiring the former Lazarus properties and to make some initial improvements to the Lazarus Building. In 2005, a Second Supplemental Lease was entered into to support the issuance by the Authority of its $42,850,000 RiverSouth Area Redevelopment Bonds, 2005 Series A (the “2005 Bonds”), to pay for additional improvements in the RiverSouth area and for additional improvements to the Lazarus Building to accommodate new tenants including the Ohio Department of Jobs and Family Services.
In 2012, interest rates for bonds were at a level which made it advantageous to refund a portion of the then outstanding 2004 Bonds, so the City and the Authority entered into the Third Supplemental Lease to support the issuance of the RiverSouth Area Redevelopment Refunding Bonds 2012 Series (the “2012 Bonds”). In 2014, interest rates for bonds were at a level which made it advantageous to refund the remaining outstanding 2004 Bonds and a portion of the outstanding 2005 Bonds, so the City and the Authority entered into the Fourth Supplemental Lease to support the issuance of the RiverSouth Area Redevelopment Refunding Bonds 2014 Series A (the “2014 Bonds”). Those 2012 Bonds and 2014 Bonds are scheduled to no longer be outstanding after years 2024 and 2025 respectively. This ordinance authorizes the City to enter into a Fifth Supplemental Lease Agreement with the Authority to allow the Authority to issue additional obligations in a maximum principal amount of $60 million to provide funds for the continued redevelopment and revitalization of the ...
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