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We dealt only with the one issue which must be resolved before funds can be expended to <br /> construct anv improvements, and that is structurinQ the rnancing consistent with all laws and <br /> re,gulations of the Internal Revenue Service and State of Illinois. <br /> After considerable review and discussion, the following procedure emerged; <br /> 1. The Decatur City Council needs to adopt an ordinance (i) broadening the <br /> scope of facilities and improvements that are anticipated to be financed <br /> from the City's line of credit (including sports facilities) and (ii) providing <br /> of�icial intent to reimburse any expenditure on the sports facilities from the <br /> line of credit; <br /> 2. Begin TEFRA process (notice of public hearing) for financing <br /> improvements on property to be owned by a not-for-profit institution <br /> (Millikin University); <br /> 3. Because it is probable that we cannot complete the TEFRA process before <br /> we must make a commitment to build the facilities, any funds necessary to <br /> be expended will have to be put up through resources of Millikin, the City <br /> or the Paxk District; <br /> 4. When the line of credit is accessed, the original expenditures from (3) <br /> above, can be repaid (because of passage of official intent from (1)); <br /> 5. City enters into inter local agreement with Park District, Millikin and/or <br /> other local institutions or groups for operational issues as well as any <br /> negotiated share of the debt service to retire the costs. <br /> 6. Refinancing of the line of credit debt for the sports facilities can be retained <br /> as an option, but probably not by using t�able municipals. <br /> I asked Dan Forbes of Speer Financial to assume the following: <br /> A FIFTEEN YEAR AMORTIZATION WITH A SEVEN YEAR BALLOON PAYMENT; <br /> The seven year balloon was chosen as seven years is the length of our recently affected <br /> letter of credit. Fifteen year amortization was chosen as that would reduce the annual cost <br /> considerably, and allow the sales tax, room tax, and other income streams that will develop as a <br /> result of the Bears camp to grow and strengthen. In other words, the structure allows minimum <br /> annual outlay in the early years until revenue catches up. As our credit line can be repaid at any <br /> time without penalty, we will have maximum flexibility as to the following options: <br />