City Parks Debt Information
City Parks Debt Information Details
City Parks Leasehold Improvement Dedicated Revenue Bonds
The City Parks Bonds were issued to pay the costs associated with the design, construction, renovation, equipping and installation of site furnishings and improvements to, and planting trees and other landscape materials in the rights of way of, the City Parks described below (the "Project"). Key components of the Project include: improvements and repairs to various park buildings, repairs to park roadways and pathways, improvements to playgrounds, playing fields and courts, improvements to the City's bike paths and landscaping. The Project encompasses all of the City Parks, which consist of 109 of the City's 110 parks, scattered throughout the entire City. These parks include all neighborhood parks and the major parks that include Carondelet Park, Fairground Park, O'Fallon Park, Willmore Park and Tower Grove Park. Situated in a municipality of 61.4 square miles, the City Parks contain 1,880 acres of park land (or approximately 2.9 square miles). The City Parks occupy approximately 4.7 percent of the City and, with the exception of Tower Grove Park, are all owned by the City.
The City maintains all of the facilities in the City Parks (except for Adams Park and Tower Grove Park), including eight recreational centers, playgrounds, fountains, statues, monuments and other attractions, tennis, handball and horseshoe courts and baseball, softball, soccer and rugby fields. Accessible to all of the residents of the City, the City Parks serve as the anchor of city neighborhoods. A
system of bike paths connects substantially all of the City Parks, a feature which allows residents to travel throughout all of the City Parks by bike. Almost all outdoor art work within the City is located in a City Park.
The City Parks Bonds are payable from and secured by Rentals, Additional Rentals and receipts to be received by the Corporation from the City under the Lease Purchase Agreement pursuant to which the Corporation has leased to the City the Leased Property. As further discussed below, the City's payment of Rentals and Additional Rentals are derived solely from sales tax revenues collected by the State and remitted to the City generally on a monthly basis. The sales tax revenues available to pay the Series 2014 Bonds are referred to herein as Dedicated Revenues. As used herein, "Dedicated Revenues" means revenue generated annually by each of the following:
(i) 6.579% of the Capital Improvement Sales Tax revenues received by the City;
(ii) 15.5% of the City's portion of the Metropolitan Parks and Recreations District Capital Improvements Sales Tax;
and (iii) $1,200,000 of the City's share of revenues from the Metro Parks Sales Tax, excluding the amount dedicated to the Major Parks (as defined below).
The portions of sales tax revenue from the Capital Improvement Sales Tax, the Metropolitan Parks and Recreations District Capital Improvements Sales Tax and the Metro Parks Sales Tax that do not constitute Dedicated Revenues are available for other capital improvement needs and debt service payments unrelated to the Project and the Series 2014 Bonds. Notwithstanding the issuance of the Series 2014 Bonds, the City's ordinances authorizing the collection of each of the Dedicated Revenues sources restrict the use of such revenues to capital improvements in the City's parks. The City Parks Bonds are further secured by a deed of trust on the Corporation's leasehold interest in the Leased Property and funds on deposit in the Debt Service Reserve Fund and the Debt Service Stabilization Fund.
THE CITY IS ONLY OBLIGATED TO MAKE PAYMENTS UNDER THE LEASE PURCHASE AGREEMENT FROM ANNUAL APPROPRIATIONS OF DEDICATED REVENUES MADE BY THE CITY, AND THE FULL FAITH AND CREDIT OF THE CITY HAS NOT BEEN PLEDGED TO THE PAYMENT OF THE SERIES 2014 BONDS. If the City fails to budget and appropriate payments in any fiscal year, the lease will terminate at the end of the fiscal year for which funds have been appropriated and the City will be required to vacate the City Parks improvements for the remaining term of the Lease Purchase Agreement.
There are currently outstanding the following one (1) series of City Parks Bonds with an aggregate principal amount of $21,650,000 as follows:
|Issuer||Series||New Money / Refunding||Par Outstanding||Final Maturity|
|St Louis Municipal Finance Corporation||2014||New Money||$21,650,000||June 15, 2043|