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RFD- 3698 Bylaws   Item #   10. i.    
Regular Council Meeting Agenda
Meeting Date: 03/23/2020  
Title:    C-1112-20 - King Street Borrowing Bylaw - First Reading - Boje
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: n/a

Information
Request for Decision Summary
This bylaw will give first reading to borrow up to $2,000,000 for the purchase of King Street Plaza. 

Proposed Motion
That first reading be given to Bylaw C-1112-20 - King Street Borrowing Bylaw.
Background/Analysis
The property to be acquired is located at 420 King Street, Spruce Grove, Alberta, T7X 2C6.  The acquisition was brought forward to Council in Closed Session on March 9, 2020. If Council does not approve the purchase then Bylaw C-1112-20 - King Street Borrowing Bylaw would not be required.
Options/Alternatives
Council may choose not to give first reading to this bylaw. If this option is chosen, alternative sources of financing would have to be secured for the purchase of King Street Plaza.  
Consultation/Engagement
N/A
Implementation/Communication
In accordance with the Municipal Government Act, the bylaw will be advertised in the March 27, 2020 and April 3, 2020 editions of the Spruce Grove Examiner. A 15 day petition period will follow, ending April 18, 2020. 

Second and third reading will be brought forward for Council's consideration on April 27, 2020.
Impacts
Funds will be secured to complete the purchase of King Street Plaza in 2020.

Fiscal Impact
Financial Implications:
The City can currently borrow $2,000,000 at a rate of 1.945% for a period of 10 years for an annual debenture payment of $221,048 from the Alberta Capital Finance Authority.  The cost of debenture financing is offset by lease revenues until these leases expire.  The leases for the most part were recently renewed and have extension options.  The borrowing was not included in the 2020 budget approved during corporate planning.  Due to the timing of the property acquisition being undertaken, this bylaw will require a payment structure that begins payments in 2020.  These payments will be covered by the lease revenues which were also not budgeted in the 2020 budget.
Attachments
King Street Borrowing Bylaw

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