Title
Adoption of Resolution Approving the Issuance of Hotel Revenue Bonds (CFC-Central Hotel, LLC Project) for Purposes of Arizona Revised Statutes, Section 35-721(B) (Resolution 21996)
...Description
Requests City Council adoption of Resolution 21996 approving the issuance of Hotel Revenue Bonds (CFC-Central Hotel, LLC Project), Series 2022, to be issued in one or more tax-exempt and/or taxable series in an aggregate principal amount not to exceed $60,000,000, solely for the purposes of complying with the Arizona Revised Statutes, section 35-721(B).
...Report
Summary
Background
On January 5, 2022, the City Council adopted Resolution 21985 granting approval of the proceedings under which The Phoenix Industrial Development Authority of the City of Phoenix, Ariz. (the "Phoenix IDA") had resolved to issue up to $60,000,000 of Hotel Revenue Bonds (the "Revenue Bonds") as required by A.R.S. 35-721(B). The proceeds from the sale of the Revenue Bonds are to be used by CFC-Central Hotel, LLC (the "Borrower"), an Arizona limited liability company, to
a) finance or refinance, as applicable, acquisition, construction, improvement, equipping and/or operation of a hotel in Phoenix, Ariz., and
b) pay certain costs related to the issuance of the Revenue Bonds.
Resolution 21985 approved the proceedings of the Phoenix IDA under which the Revenue Bonds were issued. On February 10, 2022, the Phoenix IDA adopted a resolution amending such proceedings to reflect, among other things, that the project would not be subject to a ground lease.
Current Request
Because Resolution 21985 did not reflect the Phoenix IDA's subsequent proceedings, a new approval of the plan of financing and issuance of the Revenue Bonds is requested by adoption of Resolution 21996.
Concurrence/Previous Council Action
The Phoenix IDA Board previously resolved to issue the Revenue Bonds at its meeting held on December 20, 2021 and February 10, 2022. For purposes of providing the approval required by Section 147(f) of the Internal Revenue Code, the City Council adopted Resolution 21985 on January 5, 2022, which approval remains valid.
Location
The Project is located at 3150 North Central Avenue in Phoenix, Ariz.
With the exception of certain housing bonds, the Phoenix IDA can finance projects located anywhere in Arizona. In addition, the Phoenix IDA may issue bonds to finance projects outside of Arizona, if the out-of-state project provides a benefit within the State.
...Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer.