2006-94 PROVIDING FOR THE ISSUANCE OF TAXABLE GENERAL OBLIGATION LINE OF CREDIT NOTE

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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM No. 06-236 September 26, 2006 TO: Mayor Pau1 Osborne and City Council Members FROM: Steve Garm ity Manager Dane C. B g Assistant City Manage� SUBJECT: Wabash Crossing Phase II Line of Credit Financing SUMMARY RECOMMENDATION: Staff recommends approval of the attached ordinance authorizing the issuance of a line of credit in the amount of$4.5 million with National City Bank. The line of credit will be used to fund the City's infrastructure contributions for the second phase of the Wabash Crossing proj ct. The line of credit will be priced at 30-day LIBOR plus 50 basis points(currently abc�ut 5.83%). ,, BACKGROUND: As part of the Phase IUPhase III Tripartite D�velopment Agreement, the Ciry of Decatur is obligated to provide $4.45 million far infrastructure-related development of the Phase II site. This contribution is a portion of the $10.3 million total project commitment made by the City Council in 2001. , The proposed financing will provide a short-term instrument to p�iovide for the necessary funding level in the agreement. It is anticipated that the entire inf�fa.structure package will be refinanced at a later date when the project is near completion. POTENTIAL OBJECTION: Sta.ff is not aware of objectors to tl�is agreement. INPUT FROM OTHER SOURCES: The proposed line of cred�t has been reviewed by the City's bond counsel and National City Bank. STAFF REFERENCE: Any additional questions may be forwazded to Dane Bragg at 424-2727 or�lhr;�`��u deratun��Lur��, BUDGET/TIME IMPLICATIONS: Interest-only payments ate required during the term of the line of credit. The City may elect to retire principal early before the LOC is terminated. Proceeds from the Wabash Crossing TIF Fund will be used to offset debt service payments to the extent possible.