Council signals preference for subordinate sales‑tax backstop on redevelopment bond

City municipal advisor Laura Lewis and bond counsel Randy Larson walked the council through three ways to structure bonds to accelerate construction of Old Airport Road and Lake Mountain Corridor connected to a redevelopment project: (1) a tax‑increment (TIF) pledge alone (highest risk and likely non‑rated); (2) TIF plus a moral‑obligation resolution (improves marketability); and (3) TIF with a subordinate citywide sales‑tax pledge (strongest credit and lowest interest). Lewis noted the construction fund target of about $8,000,000 for the project and said a revenue study by EPS Denver is expected within weeks.

Several council members voiced a desire for the lowest financing cost and the greatest flexibility; multiple members said they preferred option 3, which would likely produce an investment‑grade rating and reduce annual debt service from roughly $930,000 to about $732,000 in the examples Lewis showed. Lewis cautioned the council about trade‑offs: option 3 requires some level of city pledge that could be subordinate to existing sales‑tax bonds, but it also avoids building a large debt‑service reserve from city funds. Staff will return with recommended documents for the chosen option and next steps in the RDA/bonding process.