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HomeMy WebLinkAbout1983-050-03/15/1983-BEING A RESOLUTION AUTHORIZING ATHE CITY STAFF TO DRAFT NECESSARY DOCUMENTS FOR THE ISSUANCE OF BOND A 41 RESOLUTION 83-50 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING A RESOLUTION AUT40RIZING THE CITY STAFF TO DRAFT NECESSARY DOCUMENTS FOR THE ISSUANCE OF BOND ANTICIPATION NOTES IN THE PRINCIPAL AMOUNT OF $3,100,000 WHEREAS, the City of Fort Collins and the Downtown Development Au- thority have been involved in soliciting proposals from financial in- stitutions for the purchase of bond anticipation notes to be issued for the purpose of obtaining seed money for the Fort Collins Downtown Development Authority, and WHEREAS, the Staff of the City of Fort Collins has examined the proposals of Boettcher & Company and Intra-West Bank of Denver, N A , and WHEREAS, it is the recommendation of the Staff of the City of Fort Collins that the proposal of Boettcher & Company as presently exists is more beneficial to the City of Fort Collins and the Downtown Development Authority, and WHEREAS, it is the desire of the Staff of the City of Fort Collins that only one ordinance regarding the bond anticipation notes be prepared for presentation to Council NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Staff of the City of Fort Collins is hereby directed to prepare and bring to Council an ordinance authorizing issuance of bond anticipation notes based upon the proposal heretofore submitted by Boett- cher & Company Passed and adopted at a regular meeting of the City Council held this 15tn day of March, A D 1983 Mayor ATTEST City Clerk PROPOSALS SEED MONEY DDA 3 YEAR TERMS NET INTEREST EXPENSE Boettcher 6 75% Fixed Rate BANs Invested at 8 5% $460,931 6 25% Fixed Rate BANS Invested at 8 5% with a 1 1% Discount of $34,100 for an effective interest rate of 6 67% S414,431 Discount 34,100 $448,531 IntraWest 1) (65% of Prime plus 1/2% fee on undrawn balance for each bond year with block draws) Prime at 11%, Invested at 8 Sn $533,264 Prime at 18 5%, cost 12%, Invested at 14 25% $879,824 Prime at 7 7%, cost 5%, Invested at 6% $376,876 2) 7% Fixed Rate BANs Invested at 8 5% with a 1% Placement Fee $484,181 Placement Fee 31,000 $515,181