2009-35 AMENDING AN ORDINANCE - Laserfiche WebLink

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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM Memo No. 09-33 April 29, 2009 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Greg C. Crowe, Assistant City Manager of EgZP SUBJECT: Increase in Letter of Credit Financing for Wabash Crossing Phase III SUMMARY RECOMMENDATION: Staff recommends approval of the attached ordinance authorizing the increase in the maximum credit amount for a taxable letter of credit from $4.5 million to $4.75 million with National City Bank. BACKGROUND: On October 2, 2006, City Council approved the $4.5 million taxable Letter of Credit to fund the costs for infrastructure improvements for Phase II of Wabash Crossing. The additional $250,000 authorization will be used to fund the costs for design and infrastructure improvements for Wabash Crossing Phase III. As part of the Redevelopment Agreement approved by City Council with the Decatur Housing Authority and East Lake Management the City of Decatur was obligated to contribute up to $3,143,354 for Phase III of Wabash Crossing. Since the DHA, East Lake and City agreed to use the infill lots in Phase I & II for the Phase III rental units the infrastructure costs and City's contribution is significantly lower. INPUT FROM OTHER SOURCES: The proposed letter of credit amendment has been reviewed by the City's bond counsel. POTENTIAL OBJECTION: N/A STAFF REFERENCE: Any additional questions may be forwarded to Greg Crowe at 424-2727 or at crowegdecaturil.gov. BUDGET/TIME IMPLICATIONS: City staff is working with our financial advisor, Speer Financial, to find the most optimal time to refinance the Letter of Credit sometime in 2009 with a long term fixed rate bond issue.