Attached is a Resolution prepared by the City's bond counsel, Norton Rose Fulbright US L.L.P., that approves the resolution of the Allen Economic Development Corporation authorizing the issuance of its Sales Tax Revenue Bonds, Taxable Series 2020. The AEDC's resolution requires certain parameters set forth in Section 3 of the resolution to be met at the time the bonds are priced.
The bond issue is expected to be in the approximate amount of $1,800,000. The bonds are for reimbursement of land and facility acquisition.
The maximum sales tax revenue bonds that can be outstanding is restricted by a requirement that the pledged revenues (sales taxes) are not less than 1.50 times the average annual debt service of the total bonds outstanding. This bond issue will result in a 5.59 times debt service coverage, which is above the restricted requirement.
The term of the taxable bonds are 10 years and the true interest cost on the bonds is projected to be 2.7%. The bonds will not be priced until June 30, 2020, so final interest rates are an estimate at this time.
The Paying Agent/Registrar is The Bank of New York Mellon. The bank will be responsible for maintaining the ownership records of the bonds and for paying the principal and interest to the registered bondholders as the amounts become due on the payment dates. The Paying Agent/Registrar Agreement is attached.
The AEDC Resolution approved by the AEDC Board of Directors on May 20, 2020, anticipated pricing of the bonds on June 30, 2020, with a closing date in July 29, 2020.