Item # Item # 11-D AGENDA MEMORANDUM

Transcription

1 Item # Item # 11-D AGENDA MEMORANDUM Meeting Date: January 6, 2015 To: From: Title: Honorable Mayor and Members of Town Council Robert J. Slentz, Town Attorney Resolution No : A Resolution Acknowledging Receipt of Proposed Debt Issuance Notification from of Castle Pines Commercial Metropolitan District No. 1 Executive Summary As outlined in the Castle Pines Commercial Metropolitan District No. 1 service plan agenda memorandum, District 1 intends to issue a first series of bonds in the amount of $5,580,000 in Under of the Municipal Code a metropolitan district is required to submit baseline information on any proposed bond issue for Town Council review and comment. This Resolution acknowledges that the District has completed this requirement and the Council has no specific comment on the proposed issuance. Discussion The features of the proposed bond issue are summarized on the term sheet (Attachment B). $3,585,028 of bond proceeds will be paid to Lowe s and the Alberta group as reimbursement for public improvements previously constructed by the developer, for which the Districts were authorized to construct. The balance of proceeds will be utilized for Meadows Parkway, New Memphis Court and Factory Shops Boulevard improvements. The principal commercial properties that will assessed the mill levy for repayment of the bonds include: Current Owner User/Business Name Lowe's HIW Inc. Lowe's Home Improvement Gopala Hospitality Inc. Best Western Motel Batterberry Land Group Primrose School Kimsey Investments Bubbles Liquor World Craig Realty Group Outlet Stores 1 Brinker Restaurant Corp Chili's Restaurant P&B LLC Office Building 2 FCRLRELLC Freddy's Restaurant Norwest Bank Colorado Wells Fargo Bank McDonalds Corp. McDonald's Restaurant CNL Net Lease Funding IHOP Restaurant Memphis Court I Black Eyed Pea Restaurant Bailey Company Arby's Restaurant Castle Rock HI Holiday Inn 3 P&B LLC (vacant parcel) 1 Consists of two parcels containing (a) most of one of the 10 buildings comprising the Outlets, (b) a small portion of another of the 10 buildings comprising the Outlets and (c) a small portion of the parking lots for the Outlets. 2 Current tenants include Bobby Brown s Bail Bonds and Prudential Auto Loans. 3 Construction of the Holiday Inn is nearing completion and the hotel is scheduled to open on January 16, Therefore the assessed value reflect vacant ground rather than the completed hotel.

2 The District has sent notice to these property owners of the proposed property tax implication of the bond issuance. Staff Recommendation Staff recommend approval of the Resolution as presented. Proposed Motion I move to approve Resolution No as introduced and read by title. Attachments Attachment A: Resolution Attachment B: Draft term sheet Page 2

3 ATTACHMENT A RESOLUTION NO A RESOLUTION ACKNOWLEDGING RECEIPT OF PROPOSED DEBT ISSUANCE NOTIFICATION FROM CASTLE PINES COMMERCIAL METROPOLITAN DISTRICT NO. 1 WHEREAS, the Town of Castle Rock has received information submitted by the Castle Pines Commercial Metropolitan District No. 1 ( District 1 ) in connection with the District s proposed Limited Tax Supported Revenue Bonds, Series 2015, in the approximate amount of $5,580,000, and WHEREAS, the Town further acknowledges that such information has been submitted pursuant to of the Castle Rock Municipal Code and the Town has determined the submittal sufficient and no further information is required. NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF CASTLE ROCK AS FOLLOWS: Section 1. Acknowledgement. The Town Council hereby acknowledges it has received the information required under Chapter of the Castle Rock Municipal Code regarding the issuance of debt by Castle Pines Commercial Metropolitan District No. 1. The Mayor and other proper Town officials are hereby authorized to execute the Acknowledgement in the form attached as Exhibit 1, by and on behalf of the Town of Castle Rock, Colorado. PASSED, APPROVED AND ADOPTED this 6 th day of January, 2015, by the Town Council of the Town of Castle Rock, Colorado, on first and final reading by a vote of for and against. ATTEST: TOWN OF CASTLE ROCK Sally A. Misare Town Clerk Paul Donahue, Mayor Approved as to form: Robert J. Slentz, Town Attorney J:\LEGAL\RESOLUTI\CPC Metro 1 Bond Issue Acknowledgement.docx

4 EXHIBIT 1 ACKNOWLEDGEMENT OF THE TOWN OF CASTLE ROCK IN CONNECTION WITH $5,580,000* CASTLE PINES COMMERCIAL METROPOLITAN DISTRICT NO. 1 LIMITED TAX SUPPORTED REVENUE BONDS SERIES 2015 The Town of Castle Rock (the Town ) hereby acknowledges that it has received the (the District ) information submitted by Castle Pines Commercial Metropolitan District No. in conrlection with the District s proposed Limited Tax Supported Revenue Bonds, Series 2015, in the approximate amount of $5,580,000, (the Bonds ). The Town further acknowledges that such information has been submitted pursuant to Section of the Town Code and that the Town hereby deems the submittal sufficient with no further information required for the Town s review under the Town Code. The Town has reviewed the District s submission regarding the proposed financing and has no comments thereon. The Town is in agreement with the provisions of the District s submission and it is hereby accepted as of this day of TOWN OF CASTLE ROCK By: Its: :

5 ATTACHMENT B Castle Pines Commercial Metropolitan District No.1 Draft Term Sheet Series 2015 Limited General Obligation Bonds $5,580,000 Par Amount (approximate) (as of December 16, 2014) FOR DISTRICT USE ONLY PROSPECTIVE INVESTORS SHOULD REVIEW THE BOND DOCUMENTS Delivery Date: January 15, 2015 (approximate) Par Amount: $5,580,000 (approximate) Project Fund: Debt Service Reserve Fund: Costs of Issuance: $4.9M $0.5M $0.2M Final Maturity: December 1, 2039 Interest Rate: 5.5% (estimated) Payment Dates: Semi-annual interest payments on June 1 and December 1 with principal payments annually on December 1 Tax Status: Rating: Tax-exempt, Bank-Qualified, Non-AMT Non-Rated Pledged Revenue: Senior lien on revenues from the required mill levy of Districts Nos. 3 & 4 subject to a 50 mill levy cap. Pledge of S.0. tax from debt service mill levy of Districts Nos. 3 & 4. Pledge Agreement: Additional Debt: Subordinate Debt: Districts Nos. 3 & 4 will pledge their revenue described above to District No.1 through a Pledge Agreement. District No.1 will be the issuer of debt backed by the revenue received through the Pledge Agreement. Additional parity bonds may be issued without bondholder consent if the Debt Service Reserve is fully funded and the debt to assessed ratio is below 50% Subordinate bonds may be issued without bondholder consent provided that they pay debt service annually only after all payment on senior bonds, I D.A. Davidson & Co. rrer,bor SPC

6 that the district is current on senior debt service, that the Debt Service Reserve Fund is fully funded, and that the bonds are in compliance with the parameters for issuance under any existing subordinate bond documents. Trustee: Title 11 exemption: Title 32 qual.: UMB $500,000 denominations Issued to financial institutions or institutional investors D.A. Davidson 4 r,erb,r SIPC