Agenda - 04-04-1994 - VII-A - Laserfiche WebLink

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4 f 2 On March 23, the OCCAC received a conditional offer from Eaton Vance Management, Inc. of Boston to purchase a total of $9,850,000 in tax-exempt bonds to finance the project. At its meeting on March 24, the OCCAC Board of Directors voted to approve the financing deal with Eaton Vance, subject to final negotiation on several points contained in the offer. OCCAC' s placement agents are continuing efforts to market approximately $420,000 in short-term taxable bonds that would complete the project financing. Closing on the project will likely be completed within the next month or so. The key points of the offer from Eaton Vance include: * purchase of $9.85 million in tax-exempt OCCAC bonds at an interest rate of 7.5%, in minimum denominations of $100,000 * 30 year maturity, with provision for redemption of outstanding bonds as early as 10 years from closing * creation of a debt service reserve of approximately $950,000 from bond proceeds * provision that should the OCCAC fail to meet certain financial tests related to operating funds available in a given year to pay debt service, that an independent management consultant will be retained and their recommendations implemented to improve the financial strength of the operation In order for the project to proceed and for the bonds to be tax-exempt, the County Commissioners must conduct a second public hearing on the proposed bond issue and must adopt an amended resolution approving the project. The Board adopted a virtually identical resolution on November 16, 1993. The amended resolution recognizes that the principal amount of bonds expected to be issued has increased from the amount that was considered in November. RECOMMENDATION: The Manager recommends that the Board conduct the public hearing and approve the amended resolution.