HomeMy WebLinkAbout04-246DATE SUBMITTED: November 10, 2004 BILL
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Public Hearing and Ordinance Committee Meeting Date: November 23, 2004
authorizing the extension of an agreement COUNCIL MEETING Date: December ! 8c 8, 2004
with Bank of America to secure an $800,000 Departmem: Financial Services
line of credit for the Conference Cemec Presemer: Michael R. Wilson
O~'zt(,v.,a~_.~ ~ctg-O Phone: 473-5590
SUMMARY: The Conference Center needs to extend and increase the amount of interim financing
to pay for pre-opening operating costs and initial capital expenses and to fund operating deficits for
the new Kitsap Conference Center at Bremerton Harborside. The City's bank, Bank of America, has
submitted a proposal for the extension of an $800,000 line of credit for the conference center. This
line of credit will be a varihale rate issue (based on,prime rate minus 79 basis points) through issuance
of general obligation bonds.
ATTACHMENTS: 1) Conference Center financial t~lan (BolA line of credit proposal), and 2)
Conference Center 1 O-year operating budget
FISCAL IMPACTS (Include Budgeted Amount): The Conference Center Operating Fund shall
repay this line of credit through the use of General Fund monies, hotel/motel taxes and conference
center revenues. The fiscal impact will be: 1) repayment likely coming from the General Fund, 2)
quarterly payments of approx. $33,333 for a six-year term and an average annual interest payments of
$15,500.
APPROVALS: / /
DEPARTMENT DIRECTOR: . [.,..Are {/0, · ..
CITY ATTORNEY:
FINANCE DIRECTOR:
OPERATIONS: 6 ~ i CONSENT AGENDA []
RECOMMENDED MOTJON: _
Move to pass Ordinance No. 4920 on second reading, authorizing the Mayor to execute
an agreement with the BANK OF AMERICA for securing an $800,000 line of credit to fund
the pre-opening, and initial operating and capital expenses for the KiTSAP CONFERENCE
CENTER AT BREMERTON HARBORSIDE. ~ ¢:l,,g,~.~. - ~
COUNCIL ACTION: [~Approve [] Deny [] Table [] Continue [] No Action