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HomeMy WebLinkAboutR-2011-031 Intent to Reimburse-Horizons �;�, RESOLUTION NO. R-2011-031 A RESOLUTION DECLARING THE INTENT OF THE CITY TO REIMBURSE ITSELF FOR CAPITAL EXPENDITURES RELATED TO INFRASTRUCTURE IMPROVEMENTS WITHIN THE RIVERSIDE HORIZONS PROJECT AREA WHEREAS, the Board of Aldermen find it in the best interest of the City to provide for the reimbursement of certain capital expenditures related to infrastructure improvements within the Horizons development area; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS: THAT the City of Riverside, Missouri (the "City") expects to make capital expenditures after the date of this Resolution in connection with various infrastructure improvements for the Riverside Horizons project in the City, which consists of approximately 700 acres within in the City (the "ProjecY'), and the City intends to reimburse itself for such expenditures with the proceeds of bonds, notes, or a lease purchase agreement; and FURTHER THAT, that the maximum principal amount of the lease agreement or other obligations expected to be issued for the Project is $11,404,840. PASSED AND ADOPTED b,Y the Board of Aldermen and APPROVED by the Mayor of the City of Riverside, Missouri, the �1�day of � , 2011. i d�L��� ` Ka hleen L. Rose, Mayor ATTEST: �='��ka.r� , �r al��, Robin Littrell, City Clerk CITY OF f� R�vERS��-. �'�" �,c����.,�� Upstream from ordinary. 2950 NW Vivion Road Riverside, Missouri 64150 MEMO DATE: May 26, 201 I AGENDA DATE: May 31, 201 I TO: Mayor and Board of Aldermen FR�M: Nancy Thompson, City Attorney RE: Reimbursement Resolution BACKGROUND: Adoption of this resolution preserves the ability of the City to issue future debt to reimburse itself for the expenditures associated with the infrastructure improvements in the Briarcliff Horizons project area. It does not obligate the City to issue any new debt; it merely keeps the option open to utilize alternate financing mechanisms in the event the City determines it would be advantageous to do so. Timing of the adoption of the resolution is important because it is required to be adopted prior to the expenditure of any funds by the City. The City would then have I S months after the infrastructure improvements that it paid for are placed in service to issue the bonds on a tax-exempt basis to reimburse itself. The City and Briarcliff are in the process of setting up the Special Infrastructure Project Escrow Account provided under the MDA. Briarcliff has indicated its intention to fund their first deposit into the escrow account next week. The City will have 14 days to funds its proportionate share after the deposit by Briarcliff. FISCAL IMPACT: None. The maximum amount of the obligation is $I 1,404,840 (which corresponds to the city share of the Infrastructure Project under the Master Development Agreement). RECOMMENDATION: Staff recommends approval of the resolution.