| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | Agenda Title:
23-121 1R An ordinance authorizing the City of Independence, Missouri to enter into a lease purchase transaction and authorizing certain documents and actions in connection therewith. |
| | | | | | | | Recommendations:
Staff recommends approval in substantially the same form as presented. |
| | | | | | | | Executive Summary:
The City intends to acquire the property located at 20201 and 20221 E. Jackson Drive. In order to facilitate this transaction and to finance any necessary improvements to the building and site, the City intends to enter into a Lease Purchase agreement with Webster Bank, National Association. A Lease Purchase agreement is a common vehicle local governments in Missouri use to finance certain infrastructure and facility improvements. Payments under the Lease Purchase agreement are subject to annual appropriation by City Council.
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| | | | | | | | Background:
The terms of the Lease Purchase agreement with Webster Bank, National Association include:
- Principal amount of $20,000,000 (acquisition and facility/site improvements).
- Interest rate of 5.18%.
- Twenty (20) year term.
- Annual debt service of approximately $1.6M
- Prepayment: The Lease is eligible for prepayment on or after December 1, 2030 with a prepayment premium of 2%, on or after December 1, 2032 with a prepayment premium of 1% and on or after December 1, 2033 with no prepayment premium.
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Fiscal Impact:
Fiscal impact of the Lease Purchase Agreement will be based on department occupany and building costs associated with the acquisition and improvements of the property.
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| | | | | | | | | Department: City Manager's Office | Contact Person: Adam Norris |
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| REVIEWERS: | | Department | Action | | City Managers Office | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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