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| August 29, 2019, City Council Regular Meeting | |
| Title 18. Public Hearing and Second Reading of the Downtown Savannah Authority Bond Application for Approximately $45 million to Partially Fund the New Savannah Arena | |
| Strategic Priority Good Government | |
| Description The City of Savannah has requested the assistance of the Downtown Savannah Authority (DSA) by the issuance of its Downtown Savannah Authority Revenue Bonds (City of Savannah Arena Project), Series 2019. The proceeds of this issue will provide for: 1) Partial funding of the construction and equipping of a new Savannah Arena located at Stiles and Gwinnett. 2) Payment of the issuance costs related to the bonds. The City will enter into a contract with the DSA under which it will pledge to pay all interest and principal for 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 2019A bonds is $45 million. Under State statute, the Authority's application to the City to issue such bonds must receive two readings before City Council. The first reading was held at the meeting of August 15, 2019. | |
| Recommendation The Authority's application to the City should be announced and a public hearing on the application should follow the announcement. Once the public hearing is closed, the Mayor and Aldermen should vote to provide their consent to the Authority to issue the bonds. | |
| Contact David Maxwell, Chief Financial Officer | |
| Financial Impact These bonds will have an average annual debt service requirement of approximately $2 million. The City Council has previously approved a plan to fund these debt service payments with the proceeds of the 3% tax on auto rentals. | |
| Review Comments | |
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Attachments Exhibit 1: DSA Notice - Arena Funding.pdf Exhibit 2: Preliminary Numbers Proposed 2019 Arena Bonds.pdf Exhibit 3: DSA Application to City.pdf |
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