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Wayne Nielsen anticipates marketing these bonds as <br /> AA or AAA rated bonds and will be surety enhanced. <br /> The City is not accepting any credit risks neither <br /> directly nor indirectly. These bonds will be <br /> placed privately to sophisticated investors. They <br /> do not intend to market these bonds until there is <br /> some resolution to Mouse sill 3113%, a tax reform <br /> bill that affects tax exemption on bond issues as <br /> well as many other ramifications. Final bond <br /> resolution will not be brought back to Council <br /> until there is a resolution of ® 3$3$. <br /> Mohr asked as to the history of other such <br /> projects in the East. Dill Smith explained that <br /> this type of project was used previously as • means <br /> of revitalisation and has "an excellent track <br /> record and background.' However, none of the <br /> entities involved in this project have bean <br /> involved in any way in other such projects. <br /> Dill Smith stated that the $12,000,000 figure used <br /> in the resolution was arrived at by multiply the <br /> number of homes in the subdivision by ;140,000 <br /> (the estimated average cost) adding a 15% <br /> reasonably required reserve to pay bond interest <br /> and including the cost of making bond issue. This <br /> equals approximately ;11,000,000 and another <br /> $1,000,000 to include a potential project for the <br /> City of Louisville. <br /> Any developer able to put up a letter of credit to <br /> guarantee the bond holders would be qualified to <br /> arrange this sass type of project, Smith <br /> explained. <br /> Anderson explained that this affords many people <br /> who bought homes at an entry level the ability to <br /> make a second step. The City in a sense is a <br /> partner in this venture, not financially or <br /> liably, but in the sense of success or failure, <br /> Anderson stated. Be also stated concern over the <br /> high ;12,000,000 figure. <br /> Smith stated that this is a not to exceed' figure <br /> and would have more accurate figures when coming <br /> back to Council for bond issue. This is strictly <br /> a revenue bond issue an is not subject to State <br /> allocation, according to Matt Dalton. <br /> Smith stated that to the degree that the <br /> developers can prevent speculators 'we will take <br /> any reasonable means that vs possibly can to <br /> prevent the speculator from coming in.' <br />