ITEM TITLE:
Consideration and action upon a Resolution of the City of Lawton, Oklahoma (the “City”), approving and authorizing the modification of terms regarding a sales tax revenue note Series 2024C (the “Note”) to be issued by the Lawton Industrial Development Authority (the “Authority”); and all matters related thereto.
INITIATOR: John Ratliff, City Manager
STAFF INFORMATION SOURCE: John Ratliff, City Manager; John Andrew, City Attorney
BACKGROUND: In order to continue with the timely implementation of PROPEL projects, an additional loan is required to allow projects to move forward. The action taken by the City on August 13, 2024, approving the issuance of the loan by the Lawton Industrial Development Authority contemplated a fixed interest rate with a ten (10) year maturity. Due to market conditions, the purchaser of the note has expressed the need to reset the rate at five (5) years and amortize the note over ten (10) years in order to hold the paper. This resolution authorizes the modification of terms of the Note and Note Indenture from the previously approve fixed rate, ten (10) year note to a ten (10) year amortization schedule with an interest rate reset at five (5) years from the issuance of the note; and all matters related thereto.
EXHIBIT: Resolution No. 24-_____
KEY ISSUES: Does City Council approve of the Authority modifying the terms of the loan?
FUNDING SOURCE: This is a new loan which will be paid from the PROPEL CIP Sales Tax receipts.
STAFF RECOMMENDED COUNCIL ACTION: Approve the resolution authorizing the Authority to modify the terms from the current ten (10) year fixed rate note to a ten (10) year amortization schedule with an interest rate reset at five (5) years from the date of issuance of the note; and all matters related thereto.