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| December 5, 2019 City Council Regular Meeting | |
| Title 52. Motion to Adopt a Resolution Approving the Sale of Bonds by the Downtown Savannah Authority Series 2019 Taxable (Arena Project) to the Low Bidder and Authorizing an Intergovernmental Contract with the Authority to Secure the Debt Service and Fund Repayment with Proceeds from the Auto Rental Excise Tax | |
| Strategic Priority Good Government | |
| Description A resolution approving the sale by the Downtown Savannah Authority to the low bidder of taxable revenue bonds for the purposes of:
authorizing the execution of an intergovernmental agreement between the City and the Authority under which the City pledges payment of the debt service on the bonds. As required by State statute, the Authority in turn has made application to the City requesting the City Council's expressed approval for the issuance of such bonds. The approximate amount of the Series 2019 taxable bonds is $47 million. | |
| Recommendation Approval | |
| Contact David Maxwell, Chief Financial Officer | |
| Financial Impact These bonds will provide $45 million of the necessary $165 million to build the new arena. The remaining $120 million will be provided by SPLOST 6 funds. The projected average annual debt service on these bonds is $2.4 million over the 30 year life of the bonds. The City expects to liquidate the annual debt service by utilizing 100% of revenues collected from the 3% excise tax on automobile rentals. | |
| Review Comments | |
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Attachments Exhibit 1: Draft Resolution - Sale of Bonds.pdf Exhibit 2: Draft Intergovernmental Contract - Sale of Bonds.pdf Exhibit 3: Preliminary Debt Service Analysis - Sale of Bonds.pdf |
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