Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
New Brunswick Parking Authority to seek approval to refinance up to $180 million in bonds
Summary
At a special meeting, the New Brunswick Parking Authority authorized submitting an application to the Local Finance Board to refinance outstanding 2016 parking revenue bonds, not to exceed $160 million tax-exempt and $20 million taxable; the taxable portion reflects private use of the wellness garage.
At a special meeting called to order at New Brunswick City Hall, the New Brunswick Parking Authority voted to move forward with an application to the Local Finance Board to refinance outstanding 2016 parking revenue bonds.
Authority staff described the request as an application related to “city-guaranteed parking revenue refunding bonds” intended to refinance certain outstanding 2016 bonds, capped at $160 million in tax-exempt debt and $20 million in taxable debt. “Again this is not to exceed 160 million of tax exempt and 20 million of taxable bonds,” staff read aloud when presenting the resolution.
Staff said the taxable portion is driven by private use of the wellness garage: the authority’s parking agreement with Nokia assigns 125 parking spaces to that private user, and because more than 10% of garage use is private the corresponding portion of bonds must be taxable. “Taxable bonds are needed because … they’re getting 125 spaces in the … garage,” the staff member said. He added that the taxable slice is expected to be small.
The authority explained the $180 million ceiling provides flexibility: it allows refunding of particular bond issues if market conditions produce sufficient savings. Staff noted many bonds are callable in September, which informed the timing of the application.
After the presentation, a motion to proceed was made and seconded. The chair confirmed a quorum and the meeting was adjourned after voice assent; the transcript records no roll-call tally.
The application to the Local Finance Board is the next procedural step; staff said they will present the refinancing plan and projected savings when the authority appears before the board.
