STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: September 22, 2021
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Elizabeth Reich
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SUBJECT
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An ordinance (1) authorizing the issuance and sale of Hotel Occupancy Tax Revenue Refunding Bonds, Series 2021, in an amount not to exceed $270,000,000; (2) establishing parameters regarding the sale of the Bonds; (3) approving the official statement; (4) enacting other provisions relating to the subject; and (5) declaring an effective date - Not to exceed $910,300 - Financing: 2021 Convention Center Refunding Bonds Fund ($900,100) and Convention and Event Services Fund ($10,200)
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BACKGROUND
This proposed revenue bond sale is for the refunding and retirement of Civic Center Convention Complex Revenue Refunding and Improvement Bonds, Series 2009. The City's co-financial advisors, Hilltop Securities, recommend the issuance of refunding bonds to refund the eligible outstanding Civic Center Convention Complex Revenue Refunding and Improvement Bonds, Series 2009 in an amount not to exceed $270 million, for an estimated net present value savings of 19.8 percent. The bonds will be sold in a negotiated sale.
On April 29, 2021, the City issued a Request for Proposals for Convention Center Debt Refinancing underwriting from the pool of qualified firms and received 27 proposals in response. To accommodate this transaction, the City's co-financial advisors recommended a syndicate of eight underwriting firms comprising a mix of national and regional firms and two non-Minority Women-owned Business Enterprises (M/WBE) firms. Following committee review, the City plans to use an underwriting syndicate team comprising Ramirez & Co., Inc.; Piper Sandler & Co.; Morgan Stanley; Wells Fargo Securities; Loop Capital Markets; Stifel, Nicolaus & Co., Inc.; Baird; and RBC Capital Markets, LLC. Ramirez & Co., I...
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