Laserfiche WebLink
STAFF REPORT <br />PAGE TWO <br />NOVEMBER 22, 1993 <br />However, it must be noted that, while the City taxpayers will not be obligated to retire <br />the debt on the Revenue Bonds, in the unlikely event that the course's revenues (over <br />a period of time) were not sufficient to pay the debt service, the City would have to re- <br />evaluate the operations of the course and its revenue/expenditure stream. Such re- <br />evaluation might result in one or a combination of several courses of action, only one <br />of which may require a general tax subsidy. Other actions could be restructuring the <br />course operations, lease or sale options. This discussion is called to your attention <br />only to inform the Council that, while the Revenue Bond proposed is a financially <br />sound issue, developed from a well-advised and comprehensive revenue/expenditure <br />analysis, there are, however limited, some risks. <br />However, every action a City takes, in terms of any development project — be it <br />commercial/industrial or an enterprise endeavor such as the golf course, involves a <br />measure of risk. In this case, the benefits, as determined by the Task Force, far <br />outweigh any possible risks. <br />The City's financial consultant Bob Thistle and Bond Counsel Jim O'Meara have <br />reviewed the market analysis conducted by Effective Golf Course Systems and have <br />determined that the gross revenue from the course will "be sufficient to pay, when <br />due, the principal of and interest on the Bonds." Both Bob Thistle and Jim O'Meara <br />will be present Monday night to explain the details of the Bond issue. <br />The attached resolution includes several blank areas which cannot be completed until <br />the Bonds are sold. It is anticipated that the date of sale will be between December 8 <br />and 13, 1993. Subsequent to the Bond sale, all information will be provided and the <br />Council will be required to take formal action to approve the interest rates and enter <br />into the Bond Purchase Agreements. It is anticipated that this action will take place at <br />either the December 8th or 13th Council meeting. <br />