Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $7,500,000 OF NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF IMPROVING CITY-OWNED PROPERTY LOCATED AT 5810 HUDSON DRIVE BY CONSTRUCTING, FURNISHING EQUIPPING AND OTHERWISE IMPROVING (i) A NEW SALT STORAGE FACILITY AND (ii) A NEW BUS MAINTENANCE AND STORAGE FACILITY AND CLEARING, IMPROVING AND EQUIPPING THE SITE, AND DECLARING AN EMERGENCY.
Executive Summary: This ordinance allows for the sale of notes to finance the cost of the new bus garage and salt storage facility.
Body
Legislative History
17-135 - Resolution authorizing the City Manager to advertise for bids and enter into contract for construction of new Hudson City Schools bus garage facility and city salt storage structure.
17-193 - Ordinance authorizing issuance and sale of $500,000 of notes in anticipation of bonds for construction of salt storage facility and bus maintenance facility
Purpose & Explanation
The purpose of this ordinance is to allow the sale of notes to finance the construction of the new bus garage and salt storage facility. We intend to roll the notes into bonds as part of the Downtown Phase 2 project. The debt service payments for this project will come from proceeds from Tax Increment Financing (TIF) once Phase 2 is complete. The notes will be sold competitively.
Timing Considerations
Staff needs to sell the notes prior to year-end. We recommend Council pass this ordinance to allow for timely sale of the notes.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends Council pass this ordinance to allow for timely sale of the notes. Bond counsel has requested passage on second reading to allow sufficient time for the credit rating and sale of notes.
Submitted by,
Jane Howington, City Manager
Jeff Knoblauch, Asst City Manager/Finance