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ti ' <br /> . , , � <br /> ECONOMIC AND URBAN DEVELOPMENT MEM�JRANDUI� <br /> Memo No. 08-t�7 <br /> January 31, 200� I <br /> TO: Honorable Mayor Paul Osborne and City Council ' <br /> FROM: Steve Garm ity Ivfanager <br /> Greg C. Cro e Assistant City Manag� ' <br /> SUBJECT: Line of Credit Financing for 300 Block North Water De lition <br /> SUMMARY RECOMMENDATI�N: Staff recommends approv of the attached ordinance <br /> authorizing the issuance of a line of credit in the amount of$1.4 million with National City Bank. The <br /> line of credit will be used to fund the costs for the demolition of the b ldiags on the west side of the <br /> 300 Block of North Water Street. <br /> BACKGROUND: As part of the Redevelopment Agreement with Re olds Development the City is <br /> obligated to demolish the buildings on the west side of the 300 Block o North Water Street. The low <br /> bid for the demolition is$1,305,000 by National Wrecking Campany. <br /> T'he proposed financing will provide a short•term instrument to pro de necessary funding for the <br /> project. It is anticipated that the short-term financing wiil be refinan ed at a later date along with <br /> short-term financing for the West Main Streetscape project. <br /> INPUT FROM OTHER SOURCES: The proposed line of credit h been reviewed by the City's <br /> bond counsel and National City Bank. <br /> FOTENTIAL OBJECTION: N/A <br /> STAFF REFERENCE: Any additional questions ma.q be forwarded to eg Crowe at 424-2727 or at <br /> gccrowe(�a,decaturnet.org. <br /> BUDGET/TIME IMPLICATIONS: Interest only payments are req ' during the term of the line <br /> of credit. The City may elect to retim principal early before the LOC is berminated. Proceeds from the <br /> Olde Towne TIF fund will be used to offset debt service payments. <br />