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STAR Bond Issuance Study Session PresentationIssuance Bond STAR Approvals Funding & Agreement Development 3 11/2/2018 4 ctions A PlanDocuments: y y STARBondPlan A.CityGeneralFunds:B.CityGeneralObligationBonds:C.CityTemporaryNotes:D.CityUtilityFundsE.CommunityImprovementDistrictFinancing:F.IndustrialRevenueBonds:G.TaxIncrementFinancing–PayAsYouGo:H.STARBonds: A.ApplicationsReceived:B.ActionsPreviouslyTaken:C.ActionsCurrentlyBeingConsidered:A.SupplementalAgreement:B.TransfereeAgreements:C.Noteworth 11/2/2018 1.BackgroundNarrative2.ProjectList 3.FinancingSources&EconomicDevelopmentIncentivesOverview4.Documents,Applications&5.AdditionalFutureAgreements: 5 adoptingthe r rovalLette pppp artmentofCommerceA ans pp PlPl l ua t AgreementAgreement KansasDe PlanPlan oncep yy CtlC l e t BondBond o HtlH •CarMuseumConceptualPlans•DowntownStreetscapeImprovementsConceptualPlans•FamilyEntertainmentCenterConceptualPlans••AllocationofCosts/Sources&UsesofFunds•CanyonResearchReport-STARBondProjectPlanFeasib ilityStudy masterplandocument,atthistime)DevelopmentDevelopment STARSTAR ••Preliminar•DevelopmentStrategiesReport•Oshner,Hare&HareStreetscapeConcept(Note:Wearenot•••TransfereeAgreementTemplate 11/2/2018 NoteworthyPlanDocuments 6 Underway&On-Going – et gg Drafted gg &Bud gg Bein – StructureStructure && ePhasin pp SizingSizing HotelHotel --Alley-OldChicago-BaroloGrille-CarMuseum–BeingDrafted-StiefelTheatre–BeingDrafted BondBond CommissionAuthorization -SupplementalAgreement-Streetsca-StreetscapeDesignContract-StreetscapeConstructionContract-TransfereeAgreements-FinalizeDevelopmentStrategiesRevenueStudy---DepartmentofCommerceAuthorizationofBondIssu ance–PendingCity-BondIssuance–CityCommissionActionItem-On-GoingPlanAdministration 11/2/2018 6. Future Actions to be taken: 7 SalesSales TaxableTaxable NewNew : f EstimatedEstimated ofof ecificDiscussiono pp ResponsibleParty(ies)Project DescriptionSalesTaxGenerator?PercentagePercentagePercentageofSTARBondIncrementTourismGenerator?STARBondPlanEstimatedCostTableSchedule ••••••••• ectS jj Pro 11/2/2018 7.ProjectDetails: 8 uisition qq ProgrammingProgramming && SecuritySecurity , t auran t NewConstructionAc es / RttR MaintenanceMaintenance ace pp cago ChiChi DowntownDowntownOld Old •Save-A-LotGroceryStore•FieldHouse•UniversityofKansasMedicalSchool•FieldHouseParking•CityPublicImprovements(Streetscape)••Hotel•HotelRestaurant•AlleyEntertainmentComplex••StiefelTheatreRenovations•Ca rMuseum•VacantS•ExistingRetailImprovements•LeeBuildings(Low-IncomeHousing)•MedicalStudentHousing(Apartments) 11/2/2018 7.ProjectDetails: 9 :: Strategies: :: ProvisionsProvisions AreaArea DevelopmentStrategies:Development – CommitmentCommitment Study RevitalizationRevitalization StreetscapeStreetscape Revenue / NeighborhoodNeighborhood MinimumMinimum . . A.MasterDeveloperExpenses:B.CityExpenses:C.Miscellaneous:A.MasterDeveloper’sRole&TransfereeAgreements:B.MinimumBondSize&PrioritizedAllocationofSTARBondFunds:CC D.FieldHouseReimbursement:E.ProjectMile stones/PrecedentConditions:F.TaxIncrementFinancingProvisions:GG H.CommunityImprovementDistrictFinancingProvisions:I.IndustrialRevenueBondFinancingProvisions: Feasibility 11/2/2018 8. Other Cost Categories9. Star Bond Application / Authorization10.Feasibility/RevenueStudy10.11. Additional Development Agreement Provisions: 10 ubordinate Backed Bond Issuance(s): risk:risk: of overviewofoverview Scenario #2 Senior Unbacked and SGeneral . A. Scenario #1: Unbacked Bond Issuance:B.AGeneralA B. Risk inventory: C. Mitigating Factors: 11/2/2018 12. STAR Bond Sizing:13.IdentifiedProjectRisksandMitigatingFactors: 11 )) ctionItem A 5 / 11 (( reement g Ag IssuanceIssuance BondBond y CitCit forfor y bb s t AmendmentAmendment CertaintyCertainty AreaArea mprovemen ItI t o LtL ConstructionConstruction ng ki RevitalizationRevitalization ar PkiP y SufficientSufficient CitCit && mendChamberofCommerceTransientGuestTax ContractforStreetscapeDesignBankofAmericaParkingLotAcquisitionbyCityNeighborhoodNeighborhoodNegotiateSupplementalAgreementNegotiateHotelTransfereeAgreementNegotiateAlleyTransfereeAgreementNegotiateOl dChicagoTransfereeAgreementBOA BOANegotiateStiefelTheatreTransfereeAgreement(Underway)NegotiateCarMuseumTransfereeAgreement(Underway)FieldHouseCompletionA FinalizeStreetscapePhasing,Scope&BudgetAward StreetscapeConstructionContract&CommenceConstructionHotelConstructionCommencesFinalizeRevenueStudyAchieve AchieveBeginBondSizing&IssuanceAlleyConstructionCommences )) 1)2)3)3)4)5)6)7)8)8)9)10)11)12 13)14)15)16)17)17)18)19) 11/2/2018 14.ProjectedOrderofEvents: 12 ) t) ec j Amendment)Amendment) // ro Pjt)P ff eo (Lif(Lif AgreementAgreement s i as BiB o GG ou- YY DevelopmentDevelopment s- AA (Per(Per ay- PP ona d ere t s i n ReimbursementReimbursement i m AdiitdAd BondBond s d un FdF STARSTAR . FF . II . Unbacked&BackedBondIssuance(Priorto12/31/18)EstablishSTARBondFunds(AfterSTARBondIssuance)CityCityOldChicagoConstructionCommencesHotelCertificateofCompletion&STARBondReimbursement(2019)AlleyCertificat eofCompletion&STARBondReimbursement(2019)OldChicagoCertificateofCompletion&STARBondReimbursement(2018)TT DowntownC.I.D.FundsAdministeredonaPay-As-You-GoBasis(LifeofProject)HotelC.I.D.FundsAdministere donaPay-As-You-GoBasis(LifeofProject)AlleyC.I.D.FundsAdministeredonaPay-As-You-GoBasis(LifeofProject 20)21)22)22)23)24)25)26)27)27)28)29)30) 11/2/2018 14.ProjectedOrderofEvents: Cost 0M . 1.6M 12.1M 33.3M $$$20M$2 (Millions) Total$$$$ $154.0M er Total hh ing kk e Ot Housing$3.5M pp Hotel$19.0M Par & School$7.0M RetailRetail t ff Construction$31.2M House$10.8M Chicago$3.0M So Museum$4.7MBuildings$17.5M Costs Project Med Student House Entertainment$6.1M Field Streetsca Old Car Lee ExistingExisting ldld StiefelTheatre$2.2M K.U. Downtown Fie Alley Design, Medical Vacant/New 14 Tax N.R.A. SalesSales Reimb. I.R.B. Public STAR BondsBonds SourcesSources Funding Private T.I.F. C.I.D. 11/2/2018 15 $105M Private $4.9M 7M . Public C.I.D.T.I.F. $177M$17 $9.2M 1M . STAR Bonds $191M$19 of on on project the reported. reportedreported reallocation Relocation Reimbursements, and exceeds fundsfunds Utility Bond previously to slide totaltotal DueExpensesSTAR thethethis total 11/2/2018 5) Year Etc. Per Year thethe (by 5)5) inin Days Shopping, Team People Visitors 2 3 ear er YY of Shared pp y LocalLocal (b(b Person CapturedCaptured 50,000 ΑaĻğƌƭͲ Among Tournament = NonNon ear per Length ΑIƚƷĻƌ YY ectators BeBe per pp Low S per Team Person & SpendingSpending WillWill Person per $89/Day /per Teams District High of 46 Tournament TeamsTeams VisitorVisitor Additional Bond Players ofof ofof $28.33$60.67 ournaments 30 TT 12 2626 Average68%68%8 12 AverageAveragingSpending 15%15% STAR ••••••••••• 18 $18,110,213 $12,169,500 897 , $7,921,100 $4,901,300 930 , $6930897$6 $623,400 $157,700 Retail Lot GrowthGrowth & A Alley Restaurant ChicagoChicago Museum & The Save OldOld Car StiefelTheatre Hotel DowntownDowntown Restaurant 11/2/2018 300 14,0,8$5 19 $18,110,213 $7,921,100 $4,901,300 $6,930,897 $623,400 $157,700 Lot eatre hh A Alley T Restaurant l Chicago Museum e f & The e i Save Old t Car SiflS Hotel 11/2/2018 00 4,8,64$38 Study: 20 Update Changes IssuanceIssuance & Performance BondBond Scope Feasibility Review Actual EarlyEarly Project Study Revised of $20,100,000 Elements / $7,200,000 / $3,990,000 / 000 $6,920,000 , / 980 , $548,000 $18,110,213 $2980000$2 / $7,921,100 // $154,000 $4,901,300 / 00 $$ $6,930,897 $623,400 $157,700 Lot GrilleGrille A Restaurant Chicago Museum & Save Old BaroloBarolo Car StiefelTheatre Hotel 00 2,0,89$41 11/2/2018 0 0 8,4 4 6,8 3$ only to thethe ments y ofof Bond a budget) ppy would upon the receipts. STAR appropriation (in amountamount tax called interest commitment is shortfall yy year it sales and City between An ͻğƓƓǒğƌ al occurs. p each an maximummaximum ts. other pp of because rinci thethe p includes shortfall sizesize recei actually toto yy /źƷǤ͸ƭ form any upup tax liability the the bondbond commitment fund a Observations:Observations: shortfall year. sales agreement mandator take from to a yy shortfallshortfall cit make each and contingent of minimumminimum come anyany AdvisorAdvisor would a extent Ļͼ to is commits 1M g must . bonds fundfund the led Cityrevenueson Development$171M$17 Pledgep pghave Cityto to commitment.Thisto MunicipalMunicipal••••• have often not , will they are are term approved the would and security and be long P&I or because make appropriateappropriate for appropriating must debt to make toto bond standards bonds the to a commitments of which refuse refuserefuse with ethical Cities these obligation Commission. . by could appropriation high couldcould an limitlimit appropriation future used general a (Continued)(Continued) have associated commitment Therefore, the debtdebt on make be creditworthiness often to commission buy issuers commissioncommission the may are ƚĬƌźŭğƷźƚƓƭͼ͵ to constitute binding on City statutorystatutory contractual failure future s not ObservationsObservations a ' futurefuture a which not willing is aa ͻƒƚƩğƌ do is that commitments. CityCitys impact as it are believe this point but thethe AdvisorAdvisor such commitments year thoughthough ofof some negative Becauseeach Atappropriation.EvenEveninvestorshonor describedInvestorsunderstanda entity.Thesecommitmentsofferingpart part MunicipalMunicipal•••••• 23 $2.0M$2.0M Streetscape $17.1M Museum to $4.7M$4.7M Car for Need . as Reimb. ReimbReimb Back available to Hotel $442K$442K funds $19.1M streetscape FieldhouseFieldhouse Α{ƷƩĻĻƷƭĭğƦĻ Α Α/źƷǤ CommitmentLand $17.1M $200K 625M . Planning MD $1625M$1 Α/źƷǤ $5.0M$6.625M Note:++ Financed Alley $1.4M$1.4M Bond Reimb. 625M . 11/2/2018 Parking $2.0M $5.0M Hotel $1.0M $9625M$9 StiefelTh. $1.625M City FH Streetscape 24 Fund . IntInt TIF Years Costs 53.8% +5%+5% Bus. ΑЋЉ New Period Fund. Collection IntInt TIF 6.9% $300K CǒƓķ͵ͼ +5%+5% Chi. TIF . Old estest oror , 660 Funding , Business 878 , . New forwardforward PAYGO $4878660$4 Fund IntInt the TIF 21% $920K movemove +5%+5% into Apt. notnot to: doesdoes due redirected funding, be fullprojectprojecttermination, ) . Fund 1.)2)2 3.) IntInt ͻƭŷğƌƌ terminates TIF 18.3% $800K +5%+5% 11/2/2018 Fund Hotel If balance 25 Imp. . IntInt Years Retail Costs 18.9% +5%+5% ΑЋЉ Exist. Period . Imp. Collection IntInt CǒƓķ͵ͼ Costs Retail 39.5% +5%+5% TIF . New CID estest oror , 062 Funding , Retail 589 , . New forwardforward PAYGO $7589062$7 IntInt Chi the 1.0% $50K Old movemove +5%+5% into notnot to: doesdoes due redirected funding, be Prog fullprojectprojecttermination, ) . & 1.)2)2 3.) ͻƭŷğƌƌ terminates Sec 40.6% $2.8M 11/2/2018 Fund If balance Maint, Developing in t i Agreement epos Incurred DiD Years n OO Costs d Transferee ΑЋЋ PAYGO in ace PldPl s Eligible Period d ProjectProject Details Proceeds rocee HotelHotel PdP CID AllAll Reimbursethethe FurtherCollection •••• Hotel Developing in t i Agreement epos Incurred DiD Years n OO Costs d Transferee ΑЋЋ PAYGO in ace PldPl s Eligible Period d ProjectProject Details Proceeds rocee AlleyAlley PdP CID AllAll Reimbursethethe FurtherCollection •••• Alley of DistrictDistrict && eree ofof ff per t i LifeLife Agreement Trans Performance SecuritySecurity & epos OverOver DiD with PAYGO n Available OO as d Transferee BudgetBudget in ace Agreement PldPl Funds Provisions Proceeds Maintenance,Maintenance, Associated s TotalTotal d Details CID est.est. opment Costs ll rocee PdP AllAll FundDowntownDowntownProgrammingDistributed DeveAgreement$2.8M$2.8MFurther ••••• Downtown or an Year anan of Approve Inc. and Master ons: i s Upcoming& NegotiateNegotiate i Selection toto rov in the Statements, Review PiiP ͻ/źƷǤ PAYGO for Downtown, Report, Submit SDI Consult Denial, Financial DeveloperDeveloper Develop Salina Budget greement of with tğƩƷǤͼ Proceeds AA by Shall & Annually CID MasterMaster Master Event AuditedPerformancePlan RenewalRenewal &&& Shall opment the l PerformedCityCity AgreementSDI CityDenyDeny In DeveloperAlternative eve DlD•••••• Downtown Α 30 Inv. 8M . Thereby $19.1M $38M$3 Private $3.5M a Public (minimum)(minimum) Investment Streetscape on Commitment Support Streetscape $10,165,360 to Spent of for Reimb. Be Minimum STAR $6.625M y Bonds May it Generated City or i $10.1M r be STAR PiitP Commitment t of Will Fund City ($6.625M) owes to $2M $12,165,360+$12,165,360+ LtL s ii CID None Revenue ng Fund di Minimum Needed to a un FdiF Reimbursement Sufficient $10,165,360$10,165,360 scape t Includes Necessary Investment Bond ree TIF SttSt None Whether d STAR Public on Issuance BdB Agreement City $12.1M of Bond STARSTAR Uncertain ff o Additional is It STARFunding $2.0M 0M . STAR • Development$20M$2 Remainder$3.5M 11/2/2018 $0 ••• • 31 8M . Private $168M$16 Investment Utility Reloc. $250K$250K City STAR 0M . $10M$1 Reimb. CITY I Have TA in Phase $19,005,820$19,005,820 Districts CID Dates Executed $1M TAs : Streetscape til n UtilU Improvement Completion Chicago & TIF Old $800K Established & Commences ommence CC ConstructionBeen City AlleyCommunity t o NtN CommencementWillWill STAR $442K 11/2/2018 •• 32 Inv. 8M . $3.8M $38M$3 Private Private Investment Utility 175K Reloc. $$ City II Have CID TA $628K in $6,100,333$6,100,333 Phase Phase Districts Executed Dates TAs StreetscapeStreetscape d e TIF h Until: None s Chicago Improvement Completion bli & a Old t s & EtblihdE CommencesCommences een Commence ConstructionB B CityCity HotelCommunity Not STAR $1.6M CommencementWill 11/2/2018 •• 33 Inv. $2.65M Private Agreement Int Transferee CID $50K in +5% 000 , Included 000 be , $3000000$3 to Int Dates TIF $300K +5% Completion & Bonds None STAR 11/2/2018 Commencement • 34 Inv. 8M . None $38M$3 Private Private Investment reement gg Lot A ? $$ Parking Donation City Transferee in Included CID None be $4,695,000$4,695,000 to Dates letion pp TIF None Com & STAR $4.695M 11/2/2018 Commencement • 35 Inv. 8M . $200K $38M$3 Private Private Investment reement gg A Reimb. $2.0M STAR Transferee City in Included CID None be $2,200,000$2,200,000 to Dates letion pp TIF None Com & STAR None 11/2/2018 Commencement • 36 Inv. $2.56M Private Agreement Transferee CID None in 600 , Included 485 be , $3485600$3 to Int Dates TIF $920K +5% Completion & Bonds None STAR 11/2/2018 Commencement • fully risk it be project, risk; cannot governmentgovernment andand of eliminate to: risk or andand risks;risks; risk thethe (most entities development privateprivate probability risk of thethe weighweigh both the possible significant risks; for d) bothboth Factors incentivized RisksRisks nate forfor i Risks overview m identifydeterminerealisticallyrealisticallymitigate liid)li prudent playplay whenevere every is atat In It TimingGeneralGeneralMitigating Generalis is entity • 38 11/2/2018 39 11/2/2018 40 Blue by Purchased & City Projections timelines / the & City by Structure the Report by & Unbacked performance Α Strategies Sizing Α ƓĬğĭƉĻķ updated Issuance Bond IssuanceBond Development account Services:Structure to International Bond upon in Klaus Opinion Bond Lahay JimJohn Based SeniorSubordinateTakes Beacon, Sizing •••••• StifelInvestmentBond Negotiated 11/2/2018 41 Study Feasibility Report Commission Strategies Website City Updated to City on Strategies: Pfister Development Andy DistributedPosted ••• DevelopmentUpdated 11/2/2018 42 Updates Project e ill r GillG o l ects Alley Chicago Museum jj aro Pro HotelThe OldBl B StiefelTheatreCar 2020 •••••• SalinaCurrent 11/2/2018 43 11/2/2018 44 11/2/2018 45 11/2/2018 46 11/2/2018 47 11/2/2018 48 11/2/2018 49 11/2/2018 50 11/2/2018 51 11/2/2018 52 11/2/2018 53 11/2/2018 54 11/2/2018 55 11/2/2018 56 11/2/2018 57 11/2/2018 58 11/2/2018 59 11/2/2018 60 11/2/2018 61 11/2/2018 62 11/2/2018 63 11/2/2018 64 11/2/2018 65 11/2/2018 66 11/2/2018 67 11/2/2018 68 Authorization Bond STAR Counsel: Bond Anderson Bell & Gary • Gilmore 11/2/2018