| | | | | | | | Council Communication
Department: City Clerk
Case/Project No.:
Submitted by: Richard Wade | Resolution 19-123
ITEM 3.F. | Council Action: 5/20/2019 |
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| | | | | | | | Description
Resolution setting a Public Hearing on approving a Final Exhibit B to the Parking Facility Lease Purchase Agreement and revising the total amount of potential payments to be made as part of the lease purchase acquisition of the River’s Edge Parking Facility to not to exceed $19,250,000
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| | | | | | | | Background/Discussion
The parking garage at Rivers Edge is nearing completion and it is now approaching the time where the City is to assume responsibilities for it.
When the City first entered the lease purchase agreement, which brought about the construction of this facility in addition to approximately $4.2 million contributed toward the project in roughly equal parts by the City and the Iowa West Foundation the balance of the project costs of what was estimated to be $9,762,640 was to be paid off by lease payments over 20 years with interest cost, which was projected to add up to $15,723,034.19.
With the final numbers now in the lease payments over the twenty years are now $14,971,836.12. This is $751,198.07 less than what was initially forecasted. Taking the initial contributions into account the total project costs will equal $19,212,132.12, which includes the interest to be paid over the next twenty years.
We have been advised by our bonding counsel that a public hearing should be held disclosing this amount. A resolution setting this hearing for the June 10, 2019 has been placed on this agenda.
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