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CITY of RAPID CITY Agenda Item Summary |
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Meeting Date: 11/25/2014 |
Commission, Board or Committee: Civic Center Executive Committee |
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Staff Contact: Joel Landeen, City Attorney or Pauline Sumption, Finance Officer |
PW Committee or L&F Committee: Legal & Finance |
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Petitioner: N/A |
City Council 1st Reading: N/A |
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Location: Rushmore Plaza Civic Center |
City Council 2nd Reading: N/A |
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Agenda Title: |
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Resolution No. 2014-118 Authorizing the Issuance of Sales Tax Obligations for the Rushmore Plaza Civic Center in an Amount Not to Exceed $180,000,000 in Construction Costs and Further Authorizing Certain Officers of the City to Approve, Execute and Deliver Agreements and Documents Relating to the Obligations. |
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Summary: |
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This resolution authorizes the issuance of sales tax obligations, anticipated to be bonds and certificates of participation, payable out of the City’s sales tax revenue to finance improvements to the Rushmore Plaza Civic Center. Approving this action allows the Mayor, Finance Officer and the City Attorney to sign and authorize the documents necessary to issue the bonds. The maximum amount for construction contained in the resolution is $180 million dollars with an average yield on the obligations cannot exceed 6%. The maximum duration to pay off the obligations incurred under this resolution is 30 years. Approval will allow the City to move forward with construction of the “Blue Concept” proposal for updating the Civic Center. The Civic Center Executive Task Force has recommended that the City Council approve this resolution so that the project can proceed. |
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Funding Source & Fiscal Impact (if applicable): |
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The Vision Account within the City’s newly created Capital Improvements & Vision Fund. The fiscal impact will be $180 million in construction costs plus issuance and financing costs. The annual bond payment on these amounts is estimated to be approximately $11.4 million per year. It is anticipated this payment will use the majority of the funds in the Vision Account for approximately 5 years, but after the initial period there should be additional revenues generated beyond what is needed for the bond payment which can be used for other projects. |
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Recommendation: |
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Action: Approve Notes: Failure to approve will essentially end moving forward on the current proposal. There is no other funding source sufficient to pay for the project and if the start of construction is delayed by a few months the cost of construction will exceed $180 million dollars. |
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Options: |
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If this proposal is defeated it will necessitate going back to the drawing board and bringing forward alternative options for addressing the American’s with Disabilities Act violations within the Barnett Arena. |
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Attachments & Links: |
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