Number
111182
Version
ORIGINAL
Reference
Sponsor
ALD. MURPHY
Title
Resolution approving amendments to terms of the City's Industrial Development Revenue Bond, Series 2007 (Pettit National Ice Center, Inc. Project).
Analysis
This resolution authorizes certain amendments to the interest rate and redemption terms of the City’s Industrial Development Revenue Bond, Series 2007 (Pettit National Ice Center, Inc. Project), issued to finance Pettit National Ice Center, Inc.’s acquisition of the ice skating facility located at 500 South 84th Street. The owner of the Bond and the Borrower have agreed to the terms of the amendment. The City has no pecuniary liability with respect to the Bond.
BODY
Whereas, The City of Milwaukee has issued its Industrial Development Revenue Bond, Series 2007 (Pettit National Ice Center, Inc. Project) (referred to herein as the “Bond”); and
Whereas, In connection therewith, the City entered into a Financing and Bond Purchase Agreement (“Agreement”) with TCF National Bank (referred to herein as the “Bondholder”) and Pettit National Ice Center, Inc. (referred to herein as the “Borrower”), pursuant to which the City sold the Bond to the Bondholder and lent the proceeds thereof to the Borrower to finance its acquisition and improvement of the ice skating facility located at 500 South 84th Street; and
Whereas, The Agreement provides for the interest rate on the Bond to be reset on January 5, 2012, and January 5, 2017, and further provides for redemption of the Bond on January 5, 2017, at the election of the Bondholder; and
Whereas, The Borrower and the Bond Purchaser have presented the City with a proposed First Amendment to Financing and Bond Purchase Agreement (attached hereto as Exhibit A, incorporated herein by reference and referred to herein as the “Amendment”), which would amend the Agreement and the terms of the Bond by changing the interest rate formula for the Bond, by revising the amortization schedule based on the new ...
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