REQUEST FOR PROPOSALS
For Direct Purchase or Private Placement of:
Brownfield Redevelopment Authority of the City of East Lansing
$14,650,000*
Limited Obligation Tax Increment Revenue Refunding Bonds, Series 2020A
(Tax-Exempt)
$14,660,000*
Limited Obligation Tax Increment Revenue Refunding Bonds, Series 2020B
(Taxable)
October 14, 2020
The Brownfield Redevelopment Authority of the City of East Lansing, County of Ingham, State of Michigan (the “Authority”) is requesting proposals from one or more qualified investors (each a “Proposer” or “Purchaser”) to purchase its proposed Limited Obligation Tax Increment Revenue Refunding Bonds, Series 2020A (Tax Exempt) & Series 2020B (Taxable) (the “Series 2020 Bonds”), in accordance with the Proposed Financing Terms set forth below. If issued, the proceeds of the Series 2020 Bonds will be used to refund the Authority’s $25,265,000 Limited Obligation Tax Increment Revenue Bonds, Series 2017 (Taxable) (the “2017 Bonds”), which was issued in order to finance the costs of certain infrastructure improvements and a parking structure (collectively, the “Project”), within the approved City Center Brownfield Plan No. 24 (the “Brownfield Plan”), possibly paying or reimbursing additional eligible costs of the Project, and the cost of issuance related to the Series 2020 Bonds. The Project financed from proceeds of the 2017 Bonds is completed and Taxable Value within Brownfield Plan was established on the tax roll as of December 31, 2019, see Exhibit C herein and the “Schedule of Projected Tax Increment Revenues Available for Debt Service.”
The Series 2020 Bonds shall be payable solely from Tax Increment Revenues and DDA revenues transferred to the Authority pursuant to an Interlocal Agreement between the Authority and the City of East Lansing, Michigan Downtown Development Authority (the “DDA”), the Debt Service Fund, the Debt Service Reserve Fund, if any (the “Pledged Funds”). Pledge Funds are limited to $55,952,038 during the Brownfield Plan and authorized for collection through December 2049. As of the date of this RFP, $1,316,010 of Pledged Funds have been collected and is currently being held by the trustee of the 2017 Bonds.
The 2020 Bonds are not a general obligation of the Authority or the City of East Lansing (the “City”) and do not constitute an indebtedness of the City within any constitutional, statutory or charter limitation.
By providing a proposal, each Proposer is agreeing to the Proposed Financing Terms herein and is acknowledging the Schedule of Events set forth below. Proposals should be firm through December 1, 2020.
