Title
A RESOLUTION GRANTING WAIVER OF SERVICE PLAN REQUIREMENT RELATING TO DEBT ISSUANCE FOR LEGATO METROPOLITAN DISTRICT NOS. 1-7
Body
Summary:
The Legato Metropolitan Districts (Numbers 1-7) (Legato) were formed last year following Council’s approval of their consolidated service plan at the August 17, 2020, meeting. Legato is now requesting a waiver to section VI.A.2 of their service plan. This section requires Legato to submit financing documents to the City for comment within 60 days before Legato can issue debt. In order to take advantage of favorable interest rates and good weather and maximize time available for construction, Legato is requesting a waiver in order to issue debt by approximately June 2, 2021, and begin construction shortly thereafter. The debt is to be issued by the newly formed Legato Community Authority, which will coordinate efforts across districts. Staff is recommending approval of this waiver as Legato has provided nearly all details of the debt issuance required by the Service Plan, can provide additional information at the time of debt issuance, the City does not have the power to deny the debt issuance, favorable interest rates will benefit future property owners, and the advancement of construction will further the City’s economic development.
Background:
Resolution 2021-31 grants Legato a waiver of the requirements of Section VI.A.2 of the Legato Consolidated Service Plan, whicj requires Legato to submit financing documents to the City for comment within 60 before Legato can issue any debt. Importantly, this section does not grant the City a right to approve or deny the financing, solely to give comments.
Legato is planning on issuing debt through the Legato Community Authority, as described in Legato's written request and the Authority's Establishment Agreement in the packet. The Authority is a newly-formed entity created by the Legato districts that will oversee and coordinate operations across all seven districts. Di...
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