2008-29 PROVIDING FOR ISSUANCE OF GENERAL OBLIGATION NOTE

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y ��. � ECONOMIC AND URBAN DEVELOPMENT MEM RANDUM Memo No. 08-52 Apri130, 2008 TO: Honorable Mayor Paul Osborne and City Council FROM: Steve G , ity Manager Greg C. C w , Assistant City Manager of EU� I/�� Richard G. Marley,P.E.,Director of Engineering&Infras ctu �`�I�``'�'� SUBJECT: Line of Credit Financing for 300 Block North Water Stre tscape and Millikin University Streetscape Projects SUMMARY RECOMMENDATION: Staff recommends approv of the attached ordinance authorizing the issuance of a line of credit in the amount of $1.5 llion with Soy Capital Bank, Regions Bank, Busey Bank and Hickory Point Bank. The line of creditiwill be used to fund the costs for streetscape improvements and the conversion of the 300 Block of 'orth Water Street to two-way traffic and the City's matching funds for the Millikin/West Main Streets ape project. BACKGROUND: As part of the Redevelopment Agreement with Re olds Development the City is obligated to convert the 300 Block of North Water Street to two- ay tr�c and improve the streetscape surrounding the new building. The project is currently out or bids and will be brought to City Council on May 19, 2008 to award the contract. The only bid received for the Millikin/West Main Streetscape proj ct was from Otto Baum for $2,199,763. The bid is 5.8% greater than the engineer's estimate of $2,079,836. The City's total match for the project is$872,710. The proposed financing will provide a short-term instrument to prov de necessary funding for the projects. It is anticipated that the short-term financing will be refinan ed at a later date along with short-term fmancing for the West Main Streetscape project. INPUT FROM OTHER SOURCES: The proposed line of credit h 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 ccrowe ,decaturnet.or�. BUDGET/TIME IMPLICATIONS: Interest only payments are requi ed during the term of the line of credit. T'he City may elect to retire principal early before the LOC is rminated. Proceeds from the Olde Towne TIF fund will be used to offset debt service payments.