File #: 13-0275    Version: 1 Name: TMBF Initial Resolution
Type: Resolution Status: Consent Agenda
File created: 8/21/2013 In control: City Council
On agenda: Final action: 4/28/2014
Title: Approval of Initial Resolution for a "not to exceed" $4,000,000 loan for downtown project
Sponsors: City Clerk
Indexes: Not applicable
Attachments: 1. TML Bond Fund - Initial Resolution, 2. Draft Loan Agreement
Related files: 13-0276, 13-0233, 17-0128
Title
Approval of Initial Resolution for a “not to exceed” $4,000,000 loan for downtown project
 
Body
SUMMARY:
Council approved borrowing the local match funds through TMBF at the July 25th meeting.  Attached is the Initial Resolution to incur indebtedness in an amount not to exceed $4,000,000 through the Tennessee Municipal Bond Fund for the improvements in the downtown revitalization project, execution of a loan agreement, and to fund the incidental and necessary expenses.  
Under Tennessee law, the only way to issue new money with General Obligation backing is to do a competitive public sale or a loan through a public building authority unless you are issuing a capital outlay note for under $2,000,000 and for a term of 12 years or less.  The Bond Fund uses the Public Building Authority of the City of Clarksville as the issuer of the debt.  The PBA will issue a revenue bond which will be sold to a bank with the proceeds being loaned to the City of Crossville pursuant to a loan agreement.
      As noted in the resolution, a copy of the resolution will be placed in the newspaper along with a notice.  The loan can close 20 days following publication if no qualified petition is filed.
BUDGET ACCOUNT:  Not applicable
 
Recommended Action
NECESSARY COUNCIL ACTION:  Approve Initial Resolution.