Request for Council Action:
A Resolution approving the issuance by the CRA of a redevelopment Note Series 2018 in a Principal amount not to Exceed 9,000,000 to finance the costs of certain redevelopment Projects located within the Community Redevelopment Area. According to the CRA attorney, the proposed projects are consistent with the Community Redevelopment Plan.
The CRA will utilize the new funding for Capital Improvements approved but unfunded in the 2018/2019 FY Budget. The projects total 8.5 million dollars and include the following:
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Property Acquisition & Redevelopment: 4.0 million
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Phase II Marina Public Elements: 1.5 million
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Avenue “E” Complete Street Reconstruction: 2.0 million (CRA contribution)
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Affordable Housing Initiatives: 1.0 million
Financial Summary:
The CRA issued an RFP for Bank Loan proposals for Tax-Exempt, Bank Qualified Loan on October 2, 2018, and received two proposals on October 18, 2018. The proposals were submitted by Bank United and BB&T.
The BB&T provided the lowest interest rate. The proposed debt issuance has a Coupon rate of 3.77% and a true interest cost of 3.85696% over 15 years. The initial loan payments will be $325,325 of interest only until FY2026. The principal payments will begin in 2026 which aligns the increasing debt payments to begin after the CRA existing BBT Debt Payments are completed. Annual costs from FY2026 through FY2033 at approximately $1,296K .The CRA will retain the option for prepayment of the loan for 1% fee at anytime during the term of the loan.