Title
RESOLUTION 2254: AUTHORIZING THE CITY MANAGER TO ENTER AN AMENDMENT TO THE INTERLOCAL AGREEMENT BETWEEN THE CITY AND THE COWLITZ COUNTY PUBLIC FACILITIES DISTRICT
COUNCIL STRATEGIC INITIATIVE ADDRESSED:
Strengthen economic conditions & create new opportunities
Address quality of place issues
CITY ATTORNEY REVIEW: REQUIRED
SUMMARY STATEMENT:
The Cowlitz County Public Facilities District (PFD) remodeled the Columbia Theatre for the Performing Arts in 2008-09 in accordance with an Interlocal Agreement (ILA). The City issued Limited Tax General Obligation and Refunding Bonds, 2007 a portion of the proceeds of which was used to improve, expand and rehabilitate the Theatre. The PFD has provided and is responsible for continuing to provide tax revenues from the Retained Sales Tax to the City sufficient to pay debt service on the portion of the 2007 Bonds that financed the Theatre improvements pursuant to the original ILA.
The PFD and the City now desire to complete additional improvements (installation of a chiller) to the Theatre, the budget for which is estimated at $1,002,000. In December 2017, the City issued Limited Tax General Obligation and Refunding Bonds, 2017 a portion of which bonds will be used to finance the additional improvements and a portion of which will refund the 2007 Bonds to lower the debt service payments.
As set out in the attached proposed amended agreement, in consideration of the City’s agreement to issue such Bonds, the PFD agrees to continue to levy the Retained Sales Tax and to periodically transfer tax revenues from the Retained Sales Tax to the City in the amount necessary to pay principal and interest on the Bonds (first priority). The amended agreement also identifies, in priority order, five other purposes for revenues received from the Retained Sales Tax.
Exhibit 6.4 identifies the initial project schedule for the additional improvements to the Theater.
Principle changes include:
1. The 4th Amendment follows the original ILA in form and significant detail.
2. Principal modifications are: a. Section I, the Project. See also Exhibit 1.
b. Adding new Section B to 3.1 on page 4, and new 6.5 on page 10, referencing the Dept. of Commerce review.
c. Adding new Fourth and Sixth paragraphs to Section 3.1 on page 5. Fourth is the first amendment to the ILA.
d. Modifying 3.1 G and 3.2 A to state the extension to 40 years.
e. Modifying the budget for the project. See Section 6.3, page 10, and Exhibit 6.3.
f. Modifying the timeline for the project. See Section 6.4, page 10, and Exhibit 6.4.
g. Modifying the financing plan. See Section 5 and Exhibit 5.1. Section V was primarily reworked by bond council.
3. The lease amendment states the 40 year period and modifies Exhibit B.
RECOMMENDED ACTION:
Motion to approve Resolution No. 2254
STAFF CONTACT:
Jim McNamara, City Attorney