02/27/1985 Meeting - Laserfiche WebLink

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February 21, 1985 To: Ci ty Council Urban Renewal Agency e From: Warren G. Wong, Finance Director Subject: Advanced Refunding of Community Conference Cente~ Certificates of Participation At your January 16th meeting, you approved a plan to initiate an advanced refunding of the outstanding Certificates of Participation used to construct the Eugene Community Conference Center. At that time, we indicated that finalization of this plan would require several changes to existing agreements and confirmation of new agreements pertinent to the refunding issue: The changes to existing agreements and new agreements are as follows: A. As the Urban Renewal Agency: 1. Authorizes sale of New Certificates of Participation and transfers "rental payments" from the URA to the City to the New Certificates. 2. Amends the Intergovernmental Ageements between the URA and the City to recognize that "rental payments" are to be considered along with outstanding Tax Increment Bonded Debt payments in the application of coverage requirements for the issuance of additional parity bonded debt. e B. As the City Council: 1. Authorizes the City to enter-into a Purchase Agreement with the Underwriters, Kidder-Peabody/Shearson Lehman (Foster & Marshall) - American Express/Portland Northwest, for new Certificates of Participation to be called Refunding Certificates as follows: *a. Principal Amount -- $ *b. True Interest Rate -- *Net Present Value Savings -- $ *NOTE: At the time this memorandum was prepared, the above information was not available as the issue was still being marketed by the Underwriters. However, at your February 27th meeting, this information will be available for inclusion in the documents. 2. Amends Intergovernmental Agreement between City and URA to: a. Recognize advance refunding program. b. Formally recognize that coverage requirements on the issuance of additional parity Tax Increment Bonded Debt must also cover the "rental payment" on the Refunding Certificates as well as the debt service on currently outstanding URA bonds. 3. Amends Lease-Purchase Agreement between the City and the Trustee, First Interstate Bank of Oregon, to recognize that the Refunding Certificates are replacing the existing Certificates. e 4. Authorizes the City to enter into a new Refunding Trust Indenture with the new holders of the Refunding Certificates of Participation, which transfers provisions of the current Indenture to the new Refunding Indenture; and, further, makes the following changes or adds to the existing provisions as follows: a. Changes restrictions on Trust Fund investments from a maximum of ten years to five years and limits investments to placement in