Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Finance Bonds topic
No spam. Unsubscribe anytime.
DeKalb committee designates 4380 Memorial Drive as urban redevelopment area; county hears $450M water/sewer bond plan and $18M URA financing timetable
Summary
The Finance, Audit and Budget Committee designated 4380 Memorial Drive in Decatur as an urban redevelopment area and approved an accompanying redevelopment plan, and county financial advisers presented plans for a roughly $450 million water and sewer revenue bond and an approximately $18 million URA financing tied to the property purchase.
The Finance, Audit and Budget Committee designated the property at 4380 Memorial Drive in Decatur as an urban redevelopment area and adopted an accompanying urban redevelopment plan. Committee members asked staff to add language specifying a future master planning process with public input; the resolution and plan were approved by voice vote.
County financial advisers from PFM presented the county's preliminary plan of finance for two separate financings: a proposed water and sewer revenue bond (new-money financing to support the water and sewer master plan) and an urban redevelopment agency (URA) revenue financing to acquire the 4380 Memorial Drive property.
PFM's Elyse Lomel told the committee the water and sewer revenue issue is expected to fund projects totaling about $450 million, would be sold in a competitive public offering, and is tentatively scheduled for bid opening on July 8 with a closing near July 22. The offering's structure anticipates annual principal payments through 2055, semiannual interest payments, and a 10-year optional redemption. Lomel said preliminary rating expectations are consistent with the county's existing water and sewer ratings.
On the URA financing for the 4380 Memorial Drive purchase, PFM described a smaller financing of about $18 million secured through an intergovernmental agreement between the URA and the county and expected to be marketed as a direct bank loan (rather than a public competitive sale) because of size and timing. The RFP for bank bids would run for roughly two to three weeks; staff indicated the county needs to close the financing on the property by June 25, and the county will evaluate 10- and 20-year repayment options and choose the most advantageous structure.
Committee members asked for language in the redevelopment plan that commits to a master plan and public stakeholder input before final developer proposals are approved. The committee approved designation of the urban redevelopment area and adoption of the plan with the agreed additional language. The finance schedule provided by staff leaves the water and sewer competitive sale in early July and the URA bank loan to be executed in time to close concurrent with the property purchase in late June.
PFM also reviewed the county's overall debt profile, noting that most outstanding debt is tied to the water and sewer enterprise and that DeKalb County is well below statutory general-obligation capacity limits.
The committee asked staff to prepare the final bond resolution for board approval and to circulate the detailed plan documents to committee members prior to the next meetings.
