TITLE
WITHDRAWN
Recommendation to adopt resolution authorizing issuance of the Airport Revenue Refunding Bonds Series 2020, in an aggregate principal amount not to exceed $119,565,000, secured and solely payable from Airport revenues, and authorize the City Manager, or designee, to execute all necessary documents in connection therewith. (District 5)
DISCUSSION
On November 3, 2009 and October 19, 2010, the City Council approved the issuance of $65 million Airport Revenue Bonds Series 2009 and $70 million Airport Revenue Bonds Series 2010, respectively. The bonds were issued to finance the Airport’s parking structure and Phase I of the Terminal Area Improvements.
Additionally, on February 11, 2020, the City Council expressed its intent to issue Airport revenue bonds in an amount of up to $21 million to finance a portion of the construction costs for Phase II Terminal Area Improvements and the costs associated with issuing a bond.
The City proposes to issue the Airport Revenue Refunding Bonds Series 2020 (Series 2020 Bonds), in an aggregate principal amount not to exceed $119,565,000. Proceeds from the issuance of the Series 2020 Bonds will be used to refund the outstanding Airport Revenue Bonds, Series 2009 and 2010 (Refunded Bonds). Additionally, the Series 2020 Bonds will include new money financing of up to $21 million to fund Phase II Terminal Area Improvements. The Airport estimates that the Series 2020 Bonds will have: (1) a true interest cost of 2.80 percent, (2) finance charges of $778,000, (3) escrow/project fund amount of $125.7 million; and (4) total debt service of $150.9 million.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on February 19, 2020 and by Grants and Projects Officer Arlen Crabtree on February 12, 2020.
TIMING CONSIDERATIONS
City Council approval is requested on March 17, 2020, to take advantage of the low interest rate environment, and to facilitate the completion of Phase II Terminal Area Improvem...
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