Council authorizes $65 million sales-tax bond to finance community health and wellness center

City finance staff and bond advisors presented resolutions authorizing the sale of bonds to fund the Community Health and Wellness Center. Staff said the issuance program would include two issues: sales tax revenue bonds (Series 2025A) and a general-obligation sales-tax-backed issue (Series 2025B).

Chief financial staff described the plan: “We are looking to issue in the neighborhood… about $65,000,000 on that side and $30,000,000 on the GEO side,” and said the city planned to use about $8,000,000 of initial collections to reduce levy exposure on the GO issue. Staff outlined a calendar for the financing: credit-rating calls and final preliminary offering documents in late June/early July, a July 14 bond sale, and receipt of proceeds on Aug. 13. Debt service on all issues is scheduled as principal and interest due Feb. 1 of each year over 20 years; the city retains flexibility to redeem bonds early if desired.

Council action: Council member D’Alessandro moved and the council approved a resolution authorizing issuance and sale of the sales tax revenue bonds, Series 2025A, in the proposed aggregate principal amount of $65,000,000 (motion carried 7–0). The council also adopted the resolution authorizing issuance and sale of general-obligation sales tax revenue bonds, Series 2025B (council vote recorded as 7–0). Staff said final sale results would be returned to council the evening of the July 14 sale.

Project scope: Staff said the bond proceeds will fund the Community Health and Wellness Center, which will include gymnasiums, a walking track, an indoor playground, an aquatic facility with family lockers, and expanded public-health space.

Ending: Staff will report the actual sale results at the council meeting following the July 14 sale and will deliver proceeds to the project team after closing in mid-August.