HomeMy WebLinkAboutIR 7156 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7156
November 18, 1986
foam To the Mayor and Members of the City Council
Subject: PROPOSED FINANCING FOR WILL ROGERS MEMORIAL CENTER EQUESTRIAN
PARKING FACILITY
In anticipation of funding construction of the Equestrian Center Parking
Garage by issuing revenue bonds on which debt service would be paid for by
parking fees and/or receipts from the Southwestern Exposition and Fat Stock
Show, the City financial staff, external bond counsel and financial advisor
have had several meetings to develop an appropriate financing proposal for
this project.
The consensus from these meetings is that this particular project offers an
unique opportunity to structure a financing program which will allow those
Fort Worth citizens who identify with equestrian or cattle activities
and/or Will Rogers Memorial Center to invest directly in a related facility
at an attractive tax-exempt rate of interest. The proposed program also
should attract citizens who may not ordinarily invest in municipal bonds.
The proposed financing program will utilize small demonination capital
appreciation bonds (similiar to United States Savings Bonds) to be sold to
the public directly by the City and redeemed by the investor at City Hall
upon maturity. Although unique in the State of Texas, similar successful
programs have been conducted by other municipalities.
If such a financing plan is adopted, two primary considerations which will
influence the timing for a revenue bond sale are:
1. Construction would need to commence immediately after the
1987 Fat Stock Show.
2. The staff and advisors believe that significant marketing
advantage can be gained by selling the bonds during the
Fat Stock Show, 1/28/87-2/8/87 .
In order to accomodate this timing, City Council action authorizing the
sale of Will Rogers Revenue Investment Bonds (WR RIBS) should take place at
the November 25th Council meeting.
If any additional information is required concerning this proposal the
staff will be pleased to provide it.
Dougia arman
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS