HomeMy WebLinkAboutBlue SheetTOWN COUNCIL
MEETING
INFORMATION
MARANA MUNICIPAL
PROPERTY CORPORATION
(MMPC)
MEETING DATE: May 20, 2008 AGENDA ITEM: B. 1
TO: MAYOR AND COUNCIL
FROM: Erik Montague, Finance Director
SUBJECT: MMPC Resolution No. 2008-01: Resolution of the board of
directors of Town of Marana Municipal Property
Corporation authorizing the issuance of its not to exceed
$40,000,000 aggregate principal amount of municipal facili-
ties revenue bonds, Series 2008, for the purpose of
refinancing certain bonds of the corporation and financing
certain projects for the Town of Marana, Arizona;
delegating to the manager of the town of Marana, Arizona,
and, in his absence, the finance director of the Town of
Marana, Arizona, the authority to determine various terms
with respect to the bonds and certain matters with respect
to the bonds being refunded; providing for the application
of the proceeds from the sale of the bonds; approving the
form of and authorizing the execution and delivery by the
corporation of a series 2008 supplemental trust indenture
appropriate for the protection and disposition of revenues
and further securing the payment of the bonds, a
Combined Cortaro Silverbell District Park Ground Lease
and Fourth Supplement to Amended and Restated Town
Lease and Series 1992 Town Lease, an escrow trust
agreement, any financial guaranty or related agreement
necessary with respect to credit enhancement and a bond
purchase contract and approving an official statement
relating to the bonds.
DISCUSSION
Town has determined that it will be beneficial to its citizens to design, acquire, construct and
equip, as the case may be, extensions and additions to the sewer lines and interceptors in
Silverbell Road and to the Town's Airport, extensions and improvements to Camino de Marana
and Dove Mountain Roads and improvements to Cortaro Silverbell District Park as well as other
sewer, transportation and park projects.
Adoption of MMPC Resolution No. 2008-01 by the Board authorizes staff to proceed with the
sale of bonds in an amount to exceed $40,000,000 in Municipal Facilities Revenue Bonds.
MMPC Resolution No. 2008-01 also authorizes staff to execute any and all documents necessary
to complete the sale of bonds.
MMPC Series 2008 Authorization 5/ 14/08 12: 30 pm EM
If approved, the bonds will be issued in two series. The Municipal Facilities Revenue Bonds,
Series 2008A (the "Series 2008A Bonds") and the Municipal Facilities Revenue Bonds, Series
2008B (the "Series 2008B Bonds") would be issued for the purpose of providing funds to:
(i) Acquire, construct, improve and extend, as applicable, sewer facilities, streets
and parks of the Town of Marana, Arizona (the "Town");
(ii) To refund and redeem the Bonds Being Refunded (as defined herein);
(iii) Fund a debt service reserve fund for the Series 2008 Bonds (or pay the
premium associated with a debt service reserve fund insurance policy or surety
bond); and
(iv) Pay costs in connection with the issuance of the Series 2008 Bonds.
Of this authorization, approximately $35,000,000 will be deposited in a construction fund and
$3,500,000 will be deposited in an escrow account to refund the outstanding portion of the Series
1997 Bonds at a savings of approximately $120,000.
The Series 2008B Bonds will be subject to optional and to extraordinary optional redemption
prior to maturity. As such, the Series 2008B Bonds are subject to redemption, in whole or in part
on any interest payment date. Staff anticipates calling portions of debt as future funds become
available.
Principal of and premium, if any, and interest on the Series 2008 Bonds will be payable from
rental payments to be paid by the Town to the Town of Marana Municipal Property Corporation
(the "Corporation") pursuant to a Combined Cortaro Silverbell District Park Ground Lease and
Fourth Supplement to Amended and Restated Town Lease and Series 1992 Town Lease, to be
dated as of June 1, 2008
FINANCIAL IMPACT
The issuance of debt/lease payment was incorporated in the annual budget.
ATTACHMENTS
MMPC Resolution No. 2008-01; Sources and Uses of Funds. Available for viewing in the
Clerk's Office are the Preliminary Official Statement, Bond Purchase Agreement, Escrow Trust
Agreement, Series 2008 Supplemental Trust Indenture and Fourth Supplement to Base Town
Lease.
RECOMMENDATION
Staff recommends approval of MMPC Resolution No. 2008-01.
SUGGESTED MOTION
I move to approve MMPC Resolution No. 2008-01.
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