Title
Resolution Authorizing the Issuance of General Obligation Bond Anticipation Notes of the City of Hampton in a maximum principal amount not to exceed $9,250,000 to provide funding for the purchase and acquisition by the Economic Development Authority of the City of Hampton, Virginia of certain real property, and providing for the form, details and payment of such Bond Anticipation Notes
Purpose
PURPOSE/BACKGROUND:
The purpose of the resolution is to alllow City Council to authorize the issuance of General Obligation Bond Anticipation Notes ("BANs") in the maximum principal amount of $9,250,000 to provide funding to the Economic Development Authority ("EDA") for the purchase of the Boo Williams Sportsplex ("Sportsplex").
The resolution, if adopted, will authorize the Director of Finance, with the approval of the City Manager, to finalize the terms of the BANs and to execute the necessary documentation without further approval by City Council.
The BANs will allow for short-term financing until the City can issue long-term bonds for this project and others in the capital plan. We anticipate that the City will be issuing the long-term bonds in early 2018. By combining the Sportsplex and other capital plan financings into a singular long-term bond issue, the City benefits from the lower borrowing costs.
On August 14, 2017, Davenport & Company LLC ("Davenport"), the City's financial advisor, distributed a Request for Proposal ("RFP") to national, regional, and local financial institutions in order to obtain the most favorable interest rate for the BANs. The City received proposals from eight (8) banks. Davenport will be discussing the results of the proposals and make a recommendation on the best proposal at Council's meeting(s) on September 13.
The plan is to issue the BANs on or before October 12, 2017.
Multiple presenters will be on hand to further explain the BAN process, as well as to answer any questions Council may have. David Rose, Senior...
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