2008-98 AMENDING AN ORDINANCE - Laserfiche WebLink

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ECONOMIC AND URBAN DEVELOPMENT MEMQRANDUM Memo No. 08-155 December 10, 2008 TO: Honorable Mayor Michael T. Carrig and City Council FROM: Ryan P. McCrady, Crty Manager �` Greg C. Crowe, Assistant City Manager of EL�]�� SUBJECT: Extension of Maturity Date for Letter of Credit Financing for Wabash Crossing Phase II SUMMARY RECOMMENDATION: Staff recommends approval of the attached ordinance authorizing the extension of the maturity date from December 31, 2008 to December 31, 2009 for a taxable letter of credit in the amount of$4.5 million with National City Bank. The letter of credit was used to fund the costs for infrastructure improvements for Phase II of Wa�ash Crossing. BACKGROUND: As part of the Redevelopment Agreement approved by City Council with the ', Decatur Housing Authority and East Lake Management the City of Decatiur was obligated to contribute li up to $4,445,864 to Phase II of Wabash Crossing. On October 2, 2006, Crty Council approved the $4.5 million t�able Letter of Credit to cover the Phase II expenses. With an unfavorable financial market for taxable bonds at the end of this year, City staff approached National City Bank about extending the maturity date for the Wabash Crossing LOC by one year to give us more time to refinance when the markets will be stronger and interest rates will be lower. National City Bank agreed to the extension of the maturity date. 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 crowe e decaturil.�. BUDGET/TIME IMPLICATIONS: City staff will work with our fina�cial advisor, Speer Financial, to find the most optimal time to refinance the Letter of Credit in 2009 wi��h a long term fixed rate bond issue.