Title
An Ordinance authorizing an amendment to First Supplemental Bond Ordinance No. 2010-24 of the City of Rock Hill, South Carolina and other matters relating thereto.
Body
This ordinance provides for an amendment to the City’s First Supplemental Bond Ordinance for the Textile Corridor - and more specifically the Bleachery project. Since there may be an opportunity to issue these bonds as Recovery Zone Bonds - the City's bond attorneys have recommended that the ordinance explicitly provide for the issuance of this type debt. The advantage of recovery zone bonds is that the federal government pays for 45% of the interest costs on the bonds. These bonds are issued as taxable bonds and a determination will have to be made as to the advantage of using this type of debt as compared to using tax-exempt bonds (which normally carry a lower interest rate). The Finance staff will make a determination of the type of debt that will be issued as the City gets closer to actually issuing the bonds and City Council will be informed of this decision at that time. Staff recommends approval of the ordinance.