The new Fayetteville Public Facilities Authority (PFA) is in the process of swinging into action with a big addition to downtown. A resolution establishing an intergovernmental agreement (IGA) addressing maximum financing parameters that will fund the new City Hall and park space was adopted June 20 by the City Council.
The vote by the council was 4-0. Councilman Paul Oddo was not at the meeting.
The city is planning on using the PFA to borrow $25 million to pay for the proposed new city park and City Hall off Stonewall Avenue. Payback of the revenue bonds is expected to cost the city around $1.5 million a year. The proposed city budget — to be voted on July 18 — will total $17.2 million, an 11 percent increase over this year.
The IGA will allow the PFA to establish maximum financing parameters that will facilitate the PFA’s process of issuing bonds in the coming months for the new City Hall on Stonewall Avenue and the multiple acres of park space to the south of the municipal complex.
“The main purpose of the PFA was to provide a financing mechanism with which to fund the New City Hall-Park Space Project through the issuance of revenue bonds. In order to move forward and start the bond issuance process the City of Fayetteville must enter into an IGA with the PFA for the ‘Series 2019 New Money Bonds,’” City Manager Ray Gibson said on a June 18 letter.
In addition, said Gibson, the Parameters Resolution, of which the IGA is part of, will outline the parameters of the bond issuance for the New City Hall – Park Space Project to include items such as the maturity date and maximum interest rate. As outlined in Resolution R-20-19, the “Series 2019 New Money Bonds” will have an aggregate principal amount of $25 million at an interest rate not to exceed 6 percent and a maximum annual debt service of $1.5 Million. All interest will be payable semiannually on a date determined in the Bond Resolution with the principal maturing on or before Nov. 1, 2049.