ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to APPROVE an INTERGOVERNMENTAL AGREEMENT with the PEORIA CIVIC CENTER AUTHORITY to Provide for Operations of the Peoria Civic Center.
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BACKGROUND: The City Council approved the issuance of $20 million in bonds on behalf of the Peoria Civic Center back in March of 2023. As part of that debt issuance the Civic Center will use the funds to improve the building including upgrading the dated Ice Plant of the facility. Those bonds were sold in May of 2023 and the City is still in possession of the funds.
As part of those discussions, agreements were made relating to HRA (Hotel, Restaurant, and Amusement) funds as well as how the bond proceeds would be used and managed. This intergovernmental agreement codifies both of those points. First, this agreement sets a $1.2 million floor for support to the Civic Center annually and allows the City to recoup funds beginning in 2029 from HRA dollars if there are years there is not enough HRA taxes to cover the entire HRA cascade of funds. It also codifies repayment of previous debts beginning in 2029. Second, the agreement requires the Civic Center to maintain funds with an investment manager to ensure IRS arbitrage compliance. The Civic Center will need to meet federal spend down requirements in order to keep any excess interest generated on the bonds between the interest rate being earned and the interest rate of the debt. This agreement will ensure interest funds are kept in a separate account and not available for use unless spend down requirements are met.
FINANCIAL IMPACT: Allows the City to transfer funds to the Civic Center for its capital needs.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: This agreement allows the Civic Center to make necessary upgrades as well as provides the City will certainty of repayment of the new debt issued and any future obligations.
IMPACT IF D...
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