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RESOLUTION NO. R-1314-27: A RESOLUTION APPROVING THE INCURRENCE OF INDEBTEDNESS BY THE NORMAN TAX INCREMENT FINANCE AUTHORITY (THE “AUTHORITY”) ISSUING ITS TAX INCREMENT REVENUE NOTE, TAXABLE SERIES 2013 (THE “NOTE”); PROVIDING THAT THE ORGANIZATIONAL DOCUMENT CREATING THE AUTHORITY IS SUBJECT TO THE PROVISIONS OF THE INDENTURE AUTHORIZING THE ISSUANCE OF SAID NOTE; WAIVING COMPETITIVE BIDDING WITH RESPECT TO THE SALE OF SAID NOTE AND APPROVING THE PROCEEDINGS OF THE AUTHORITY PERTAINING TO THE SALE OF SAID NOTE; APPROVING AND AUTHORIZING EXECUTION OF A SECURITY AGREEMENT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA (THE “CITY”) AND THE AUTHORITY PERTAINING TO THE PLEDGE OF CERTAIN SALES TAX INCREMENT REVENUES AND AD VALOREM TAX INCREMENT REVENUES; AND CONTAINING OTHER PROVISIONS RELATING THERETO.
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BACKGROUND: On May 23, 2006 the City Council adopted Ordinance O-0506-66, establishing the University North Park Tax Increment Finance District (UNP TIF, or Norman TIF District #2). This Ordinance created a Project Plan delineating public improvements to be paid for by sales and ad valorem tax revenues generated within the District and apportioned to a UNP TIF Fund. The approved projects to be paid for by the UNP TIF Fund were amended by Ordinance 0809-8 on August 8, 2008. By these Ordinances, the approved public projects include the following:
Road and Traffic Improvements
Legacy Park
Lifestyle Center Incentives
Economic Development Incentives
Conference Center or Cultural Facilities
On June 30, 2009 the Norman Tax Increment Finance Authority (NTIFA) issued its TIF Revenue Note, Taxable Series 2009, in the total amount of $14,560,000. This Note authorized the financing of major projects, including the Rock Creek Road Overpass of I-35, through an arrangement with a subsidiary of the University of Oklahoma Foundation. The terms of the 2009 NTIFA Note were established to encourage permanent, fixed-rate financing with a private lender to be secured in the future.
DISCUSSION: Staff of the NTIFA received financing bid proposals to re-finance the 2009 NTIFA Note and finance additional Road Improvements (improvements to the northeast interchange of Robinson Street and I-35, extension of the I-35 Frontage Road and design of improvements to the northwest interchange of Robinson and I-35) from three qualified financial institutions on August 12, 2013:
Branch Banking & Trust Company (BB&T), Charlotte, North Carolina – 3.81%
Bank of Oklahoma (BOKF 1), Tulsa, Oklahoma – 4.09%
Bank of Oklahoma (BOKF 2), Tulsa, Oklahoma – 4.17%
Bank of Oklahoma (BOKF 3), Tulsa, Oklahoma – 4.10%
Arvest Bank, Norman, Oklahoma – 4.61%
Each of the financing proposals included varying pre-payment terms (BOKF proposed three different pre-payment options).
RECOMMENDATION: It is recommended that the financing bid proposal of BB&T be approved, that the accompanying resolutions and documents be approved, and the Mayor or Mayor Pro Tem, City Clerk or Deputy City Clerk, NTIFA Chair or Co-Chair and NTIFA Secretary or Assistant Secretary and the Finance Director/NTIFA Treasurer be authorized and empowered to execute related documents at the time of the closing of the sale or as necessary.