HomeMy WebLinkAbout2001-067 - Approval of Term Sheet in Connection with Levee District BondsBILL NO.'X ~"~"/ E' ~ ORDINANCE NO.i~'~'i~~•%
ORDINANCE APPROVING TERM SHEET IN CONNECTION WITH
LEVEE DISTRICT BONDS AND FUNDING FOR THE L-385 LEVEE
PROJECT; AND ACTIONS RELATED THERF,TO.
WHEREAS, the City has approved the L-385 Levee Redevelopment Plan and designated the
L-385 Levee Project ("Levee Project") as a tax increment financing ("TIF") project thereunder; and
WHEREAS, the financing for the Levee Project will include Levee District Bonds, City
payments and TIF financing; and
W HEREAS, the City desires to consider for approval certain preliminary terms related to the
financing of the funds necessary for the Levee Project ("Transactions").
NOW, THEREFORE, BE IT ORDAINED by the Board of Aldermen of the City of
Riverside, Missouri;
Section 1. The terms set forth in the Term Sheet attached as Exhibit A are approved.
Section 2. The City Attorney is authorised to negotiate the final form of documents
relating to the Transactions and such negotiated document(s) to which the City is a party shall be
present to the Board for final approval.
Section 3. This Ordinance shall be in full force and effect from and after its passage and
approval.
ADOPTED this ~' ` ~ .~~r` day of Junc 2001.
MAYOR !~
ATTEST:
_; . - t,•_
`'`-~ ~~TY CLERK
EXHIBIT A
SU~'IMARY OF LD BONDS FINA~'CING
Levee District/MDFB Bonds
I'he Riverside-Quindaro Bend Levee District of Platte County, Missouri ("Levee District") and/or the Missouri
Development Finance Board ("MDFB") would issue bonds ("LD Bonds") with a maximum maturity of 20 years.
Interest on the LD Bonds would be capitalized through September 1, 2002 and principal payments would commence on
March 1, 2004.
A fully-funded Debt Service Reserve fund in the amount of 10% of the principal amount of the LD Bonds would be
established from LD Bond proceeds.
If there are draws upon the Debt Service Reserve Fund, the City of Riverside, Missouri ("City") would, at such time(s),
replenish the Debt Service Reserve Pund up to a maximum aggregate out-of-pocket amount equal to 10'% of the initial
principal amount of the LD Bonds. The City would be repaid from the collection of delinquent assessments and/or TIF
Revenues.
Security for the LD Bonds
The LD Bonds would be secured by Levee District taxes, Available TIF Revenues and certain payments to be made by
the City:
Levee District taxes would be set each year taking into account the amount of Available TIF Revenues and City
payments that would be used for LD Bonds debt service:
- On September 20th o£ each year the Bond Tnistee would notify the Levee District of the Available TIF
Revenues and City payments that it has on hand for the following year's debt service on the LD Bonds.
- Levee District would certify tax assessments to the County by October 31st of each year assuming a 5°/>
delinquency rate.
-- Levcc District taxes would be paid by December 31st and distributed by the County by Febniary 15th.
City payment of $500,000 towards the LD Bonds debt service to be made on each September 15th commencing
September 15, 2002 for a period of 5 years.
Available "I~IF Revenues would be those TIF Revenues available after taking into accowlt:
-- Debt service for the currently existing TIF Bonds and additional TIF Bonds in the total approximate
amount of $11,000,000 to be issued by the City. The City may issue additional TIF Bonds to fund any
financing gap related to the Levee Project. The LD Bonds would be subordinate on project areas
already pledged to existing TIF Bonds and on new project areas for any new TIF Bonds.
-- Reimbursement to the City of the City's direct payment of funds to cover any financing gap.
-- Reimbursement to the City of any payment(s) to replenish the LD Bonds Debt Service Reserve Fund.
Cooperation Agreement
The City, Levee District and the County would enter into a Cooperation Agreement setting forth the following:
City payment of $500,000 towards the LD Bonds debt service to be made on each September 15th commencing
September 15, 2002 for a period of 5 years.
City replenishment of the Debt Service Reserve Fund Cor LD Bonds if drawn upon.
City payment of Available TIF Revenues (PILOT & EA7~S) to the Special Allocation Fund held by the Bond
Trustee.
County payment of Levee District taxes (less maintenance levy) directly to the Bond Trustee to be used to pay
debt service on the LD Bonds.