Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $700,000 OF NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF IMPROVING CITY PROPERTY CONSTITUTING THE SITE OF THE FORMER CUYAHOGA COUNTY YOUTH DEVELOPMENT CENTER BY PERFORMING SITE CLEARANCE, IMPROVEMENT AND PREPARATION AND PLACING THE SITE IN A CONDITION FOR USE AND OPERATION FOR CITY PURPOSES, AND DECLARING AN EMERGENCY.
Executive Summary: This ordinance authorizes the City to sell notes to finance the demolition of the buildings on the former Youth Development Center (YDC) property. The original YDC demolition note of $1,400,000 is being paid down by $700,000.
Body
Legislative History
Ordinance 13-80 authorized the issuance of $1,400,000 in one year notes for the purpose of paying the YDC demolition costs.
Purpose & Explanation
City Council previously made the determination that it was in the city's best interest to demolish the buildings on the YDC property. In July 2013, we sold $1.4 million in one year notes with the expectation that the note can be paid down by $700,000 at maturity. This Ordinance allows for the issuance of notes for the remaining $700,000 balance.
We recommend the notes be sold as an internal investment of the City Treasury. The interest rate will be set based on the current one year market rate of approximately .25%.
Timing Considerations
City staff is requesting the ordinance be passed with emergency language to allow us to pay down the existing $1,400,000 and issue the remaining $700,000 balance.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends passing the ordinance authorizing the issuance of $700,000 for the balance of the YDC building demolition project notes.
Submitted by,
Scott N. Schroyer, Interim City Manager
Jeff Knoblauch, Finance Director