Title
Granting preliminary approval for the issuance of certain general obligation tax increment refunding bonds (the "City of Saint Paul U.S. Bank Operations Center Bonds")
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “Authority”) has previously (i) issued its Tax Increment Revenue Bonds (U.S. Bank Operations Center Project), Series 2001 (the “Series 2001 Bonds”) in the original aggregate principal amount of $12,000,000 and currently outstanding in the principal amount of $9,835,000 and (ii) contributed approximately $3,068,000 (the “Authority Contribution”) in order to fund certain tax increment-eligible costs for the construction of an operations center leased to and occupied by U.S. Bank National Association (the “Project”) and certain related financing costs of the Series 2001 Bonds; and
WHEREAS, the Series 2001 Bonds are now callable for redemption without a premium and City staff anticipates receiving a debt service savings if the City refunds the outstanding Series 2001 Bonds and reimburses approximately $3,100,000 of the Authority Contribution to the Project through the issuance of general obligation tax increment refunding bonds (the “Series 2011 Bonds”) in one or more series of taxable or tax-exempt bonds, in a principal amount not to exceed $12,500,000; and
WHEREAS, the pledge of the City’s general obligation to the Series 2011 Bonds in this low interest rate environment will provide estimated savings on the proposed tax-exempt portion of the Series 2011 Bonds of 34.5% or approximately 3.397 million dollars over the term; and
WHEREAS, to minimize the cost of the taxable portion of the Series 2011 Bonds, such taxable bonds will be structured with a final maturity of not later than August 1, 2015; and
WHEREAS, the HRA’ s Riverfront Renaissance - US Bank District #261 (the Project Area) has only a single user (US Bank); and
WHEREAS, because of the single user nature of the Project Area, th...
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