Agenda Date: 10/17/2017
Subject:
Title
A resolution adopting the Aspen Grove Business Improvement District 2018 Operating Plan and Budget
Body
Presented By:
Mark Relph, City Manager
POLICY QUESTION:
Does city council support adopting the 2018 Operating Plan and Budget for the Aspen Grove Business Improvement District (BID)?
BACKGROUND:
The Aspen Grove BID was formed to finance the public improvements necessary for the development and operation of the Aspen Grove Lifestyle Center. As of October 16, 2016, the Aspen Grove Lifestyle Center is owned by Aspen Grove GRF2, LLC, a Delaware limited liability company.
STAFF ANALYSIS AND FISCAL IMPACTS:
The BID did not construct improvements in 2017. The BID's 2017 activities focused on maintaining the BID-owned public improvements and servicing the debt incurred by the BID to finance the public improvements necessary for the development of the Lifestyle Center.
Because of favorable conditions in the municipal credit markets, the BID's Board of Directors made a determination in 2016 to pursue refunding of the BID's outstanding Limited Tax General Obligation Refunding Bonds, Series 2007 ("2007 Bonds"). The sale of the Lifestyle Center in October 2016 placed the refunding on hold because concurrent with the sale all five seats on the BID Board became vacant.
A new BID Board was appointed by City Council on August 15, 2017. As of the date of the 2018 Operating Plan, the 2007 Bonds have not been refunded, although such refunding may occur before the end of this year. As of September 1, 2017, the net present value savings of a refund was estimated to be approximately $628,000. If the 2007 Bonds are not refunded by the end of the year, the BID wants to have the option to refund the 2007 Bonds in 2018 if market conditions remain favorable. Accordingly, the 2018 Operating Plan and Budget contemplates refunding the 2007 Bonds just in case the planned refund does not occur before the end of 2017.
In 2008, city coun...
Click here for full text