Paris council OKs notice to issue $1.5M in certificates of obligation for Love Civic Center improvements

The Paris City Council approved a resolution directing publication and website posting of a notice of intent to issue certificates of obligation to fund improvements to the Love Civic Center.

City staff member Gene explained that the council previously designated the Love Civic Center renovation as a venue project to be funded by an increase in the hotel‑motel tax, and that a May election confirmed the tax increase. Staff said they waited to verify first‑quarter proceeds and concluded projected revenue would be sufficient to cover debt service. "Back in January, the council, designated the renovation of the Love Civic Center as a venue project with the basis being an increase in the hotel tax would pay for that renovation," Gene said.

Mark McElhinney, of Samco Capital Markets and the city's financial adviser, told the council the hotel‑motel tax is estimated to bring in about $185,000 per year while debt service is estimated at about $175,000 per year for the proposed issue. He said the plan is to return Jan. 13 with bids from potential purchasers; if bids are acceptable the council would award the sale and place roughly $1.5 million into the Love Civic Center construction fund. "The million and a half will be put into, your construction fund for the Love Civic Center," he said.

Staff said the city intends to use a private placement for the sale given the small issue size and will publish the required notice as directed by the adopted resolution. A councilmember moved and the council approved the resolution by voice vote. No roll‑call vote totals were recorded in the meeting transcript.

Next steps: staff will solicit bids (private placement approach), return to council on Jan. 13 with bid results and a recommendation on awarding the certificates of obligation.