HomeMy WebLinkAbout2009-166 - BondsBILL N0.2009-166
ORDINANCE N0.2009-166
AN ORDINANCE AUTHORIZING THE PURCHASE AND RETIREMENT OF
CERTAIN BONDS AND CONFIRMATION OF THE PURCHASE PRICE OF SUCH
BONDS AS TIF REIMBURSABLE PROJECT COSTS UNDER THE L-385 LEVEE
REDEVELOPMENT PLAN, AS AMENDED, AND AUTHORIZING OTHER
DOCUMENTS AND ACTIONS RELATED THERETO
WHEREAS, The Industrial Development Authority of the City of Riverside, Missouri
(the "Authority"), at the request of the City, issued its Industrial Development Revenue Bonds
(Riverside Horizons Infrastructure Project -City of Riverside, Missouri), Series 2007 in the
principal amount of $40,265,000 (the "Bonds").
WHEREAS, the Bonds consisted of a Series A in the principal amount of $30,265,000
and a Series B in the principal amount of $10,000,000.
WHEREAS, the Bonds are backed by an annual appropriations pledge of the City and the
City is currently paying all debt service on the Bonds.
WHEREAS, the Bonds aze currently trading at a discount and the Finance Officer has
identified an opportunity for the City to purchase $100,000 principal amount of the Bonds for a
cost not greater than $91,500 plus accrued interest (the "Discounted Bonds").
WHEREAS, the City is considering this purchase due to the costs savings to be generated
due to the discount.
WHEREAS, it would be to the benefit of the City and the other taxing districts for the
City to purchase the Discounted Bonds and to be reimbursed for the cost of the Discounted
Bonds from tax increment financing revenues available under the L-385 Levee Redevelopment
Plan, as amended, thereby resulting is a saving of tax increment fmancing revenues.
WHEREAS, it is in the best interest of the City of Riverside, Missouri, its residents and
the other taxing jurisdictions operating within the City for the City to purchase the Discounted
Bonds.
NOW, THEREFORE, be it ordained by the Board of Aldermen of the City of Riverside,
Missouri as follows:
Section 1. The City approves the purchase of the Discounted Bonds and authorizes
its officers and agents, including the City Administrator and the Finance Officer, to take all
actions and execute all documents to purchase the Discounted Bonds.
Section 2. All actions of the officers and agents of the City taken prior to the passage
of this Ordinance to effectuate the purchase of the Discounted Bonds are hereby ratified and
confirmed.
Section 3. The City is taking such actions due to the cost savings generated by the
discount. It is not the intent of the City to pay, with no expectation of reimbursement, the
purchase price of the Discounted Bonds. The City's purchase of the Discounted Bonds and its
reimbursement of the purchase price thereof from tax increment financing revenues will result in
a savings to the taxing districts in the amount of the discount. The cost of purchasing the
Discounted Bonds are hereby confirmed as TIF Reimbursable Project Cost under the L-385
Levee Redevelopment Plan, as amended.
Section 4. The officers and agents of the City are hereby authorized to execute and
deliver of all documents and perform all actions necessary or desirable to effectuate the intent of
this Ordinance.
Section 5. This ordinance shall take effect immediately.
Passed and approved this 1st day of December, 2009.
~C.QQ,Q~vL/~'~~
Kathleen L. Rose, Mayor
ATTEST:
[seal]
ouise Rusick, City Clerk