38-09 OrdinanceCITY OF DUBLIN_
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017-1090
Phone: 614-410-4400 • Fax: 614-410-4490
To: Members of Dublin City Council
From: Terry Foegler, City Manager-, //~~
/f'!Ti
Date: June 25, 2009
Initiated By: Bryan K. Thurman, Deputy Director of Finance
Memo
Re: Ordinance 38-09 -First Amendment to the 1999 State Infrastructure Bank (SIB)
Loan Agreement between the Ohio Department of Transportation (ODOT) and
the City of Dublin for the Avery-Muirfield/U5 33 Interchange Improvement
Project
Summary
Ordinance 38-09 authorizes the City Manager to execute the First Amendment to the 1999 State
Infrastructure Bank (SIB) Loan Agreement with the Ohio Department of Transportation (ODOT), which
will result in the City receiving a more favorable interest rate.
In 1999, Council approved the City's participation in Ohio's SIB loan program. As a result, the City
entered into a loan agreement with ODOT in the amount of $8,055,000. The funds were secured for the
purpose of financing modifications to the Avery-Muirfield Drive/US 33 interchange. A copy of the
original payment schedule is attached.
Finance staff contacted ODOT in early 2009 to verify that the City could prepay the loan under the
terms of the loan agreement. The interest rate for the loan was originally established in five-year
increments. In 2009, the original rate in effect was 4% and was to adjust to 5% in 2010 and 6% in 2015.
The City's intent was to issue refunding bonds at a lower interest rate in 2009 and use the proceeds to
prepay the SIB loan. Subsequently, Melinda Lawrence from ODOT's Division of Finance contacted the
City regarding the opportunity to lower the interest rate of the SIB loan for the remainder of the
agreement term. ODOT has agreed to adjust the interest rate to 3% for the remaining term of the loan.
As a result, the City will save in excess of Sl.l million dollars over the remaining life of the loan. The
original Promissory Note, Exhibit B to the original Loan Agreement, will be replaced with the revised
Promissory Note. The revised Promissory Note reflects the principal outstanding as of April 2009 and
the adjusted interest rate of 3% referenced in the First Amendment to the Loan Agreement.
Based on the discussions, ODOT adjusted the interest rate effective April 2009 and requested the City
execute the amendment to the Loan Agreement.
Recommendation
Staff recommends that Ordinance 38-09 be adopted at the second reading/public hearing on August 3,
2009.
RECORD OF ORDINANCES
Ordinutzce No.
38-09
r-_on~'a ~~~~-
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Passed . 20
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO
EXECUTE THE FIRST AMENDMENT TO THE 1999 STATE
INFRASTRUCTURE BANK LOAN AGREEMENT BETWEEN
THE OHIO DEPARTMENT OF TRANSPORTATION AND
THE CITY OF DUBLIN FOR THE AVERY-MUIRFIELD/
US 33 INTERCHANGE IMPROVEMENT PROJECT
WHEREAS, Dublin City Council approved Ordinance 26-99 authorizing the City
Manager to enter into a loan agreement with the Ohio Department of Transportation
(ODOT) to finance the Avery-Muirfield Drive/LJS 33 interchange improvement
project through the State Infrastructure Bank (SIB) loan program; and
WHEREAS, the interest rate for the SIB loan was originally established in five-year
increments ranging from three (3) percent for the first five years and six (6) percent for
the final five years; and
WHEREAS, ODOT has agreed to adjust the interest rate for the SIB loan to three (3)
percent for the remaining term of the loan; and
WHEREAS, ODOT has requested that the City execute the First Amendment to the
Loan Agreement, replacing the September 1, 1999 Promissory Note with a revised
Promissory Note establishing the adjusted interest rate for the loan.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
State, of Ohio, ~ of the elected members concurring that:
Section 1. The City Manager is hereby authorized to execute the First Amendment
to the Loan Agreement between ODOT and the City of Dublin for the 1999 SIB loan
utilized to finance the Avery-Muirfield Drive/US 33 interchange improvement project.
Section 2. This ordinance shall take effect and be in force from and after the earliest
date allowed by law.
Passed this ~3 ~~ day of , 2009
~~
Mayor -Presiding Officer
ATTEST:
~_
Clerk of Council
LOAN#~SB9911
FIRST AMENDMENT
TO THE
LOAN AGREEMENT
BETWEEN
THE OHIO DEPARTMENT OF TRANSPORTATION
AND
THE CITY OF DUBLIN
APRIL , 2009
Sy~~~~
FIRST AMENDMENT TO LOAN AGREEMENT
THIS FIRST AMENDMENT TO LOAN AGREEMENT (the "First Amendment") is made
and entered by and between the The Director of Transportation of the State of Ohio (the
"Director"), and the The City of Dublin (the "Borrower").
BACKGROUND INFORMATION
A. The Director and the Borrower entered into an Loan Agreement dated September 1,
1999 (the "Agreement").
B. Director and the Borrower desire to modify certain provisions of the Loan
Agreement as provided herein.
STATEMENT OF THE AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained herein, Director
and the Borrower agree as follows:
1. Exhibit B (Form of Promissory Note) of the Loan Agreement is hereby deleted in its
entirety and replaced with the revised Exhibit B ,which is attached hereto, made a
part hereof, and incorporated herein by reference as if fully rewritten herein.
2. The Notice Address of the Director in Section 1.2 shall be revised to the following:
Ohio Department of Transportation ATTN: State Infrastructure Bank,1980 West
Broad Street, 4~' Floor, Columbus, Ohio 43223:FAX: (614) 887-4962
Except as modified herein, all terms, covenants and conditions contained in the Loan
Agreement shall remain in full force and effect.
1N WITNESS WHEREOF, the parties have duly executed this First Amendment to Loan
Agreement as of the last date set forth below.
THE DIRECTOR OF TRANSPORTATION
OF THE STATE OF OHIO
By
Jolene M. Molitoris, Director
Date
Borrower:
CITY OF DUBLIN
By
Terry Foegler, City Manager
sT
SIB Loan DUBLIN LOAN 1 AMEND 4 15 09
SIB#9911
PROMISSORY NOTE
[Replacement of September 1, 1999 Promissory Note]
~°~~ ~~
$5,396,835.31 May , 2009
For value received, the City of Dublin, a municipal corporation duly organized under the
laws of the State of Ohio (the "Borrower"), promises to pay to the order of the Ohio Department of
Transportation (the "ODOT"), at 1980 West Broad Street, Columbus, Ohio 43223, or at such other
address as may be designated in writing by the ODOT, the principal sum of Five Million Three
Hundred Ninety Six Thousand Eight Hundred Thirty Five Dollars and Thirty One Cents
($5,396,835.31) (the "Loan Amount") with interest on the amount of principal from time to time
outstanding from May _, 2009 at the rate of three percent (3 %) per annum until paid. Defined
terms used but not otherwise defined herein shall have the respective meanings assigned to them in
the Loan Agreement.
The Borrower shall pay an amount equal to the amount designated in Schedule A attached
hereto and incorporated herein in its entirety by this reference until all principal of and interest on
the Loan Amount has been paid in full or the maturity date, .
The entire principal balance hereon, and accrued and unpaid interest thereon, and all other
obligations of the Borrower hereunder, if not sooner paid, shall be due and payable in full on the
seventh day of October 2019.
The annual rate of interest stated herein shall apply to a 360-day period and amounts of
interest due hereunder shall be computed upon the basis of 30-day months. Installments of principal
and interest shall be applied first to interest as provided herein and the balance to principal due
hereunder.
The Borrower may prepay all or any portion of the principal sum hereof at any time, but if
such prepayment is made prior to the thirty-seventh month after the initial disbursement a three
percent (3%) fee shall be assessed on the amount prepaid. All such prepayments shall be applied
to the payment of the principal installments due hereon in the inverse order of their maturity, and
shall be accompanied by the payment of accrued interest on the amount of the prepayment to the
date thereof.
The payment of this Note and all interest hereon is secured by the full faith and credit of the
City. The covenants, conditions and agreements contained in the Loan Agreement are hereby made
a part of this Note.
If default be made in the payment of any installment of principal and interest under this Note
when any such payment shall have become due and payable, or if an "Event of Default," as defined
in the Loan Agreement shall have occurred and be continuing, then, at the option of the ODOT, the
entire principal sum payable hereunder and all interest and monthly service fee accrued thereon shall
become due and payable at once, provided fourteen (14) days prior notice thereof has been given
Page 1 of 2
to the Borrower.
For the period during which a default shall exist in the payment of any amount due and
payable hereunder (the "Amount Due") a late charge equal to five percent (5%) of the Amount Due
shall be assessed, in addition to all other sums due hereunder, for each month during which the
default exists. In the event ODOT elects to accelerate the Loan, the interest rate shall increase to
eight percent (8%) per annum on any monies due ODOT.
If any provision hereof is in conflict with any statute or rule of law of the State of Ohio or
is otherwise unenforceable for any reason whatsoever, then such provision shall be deemed
separable from and shall not invalidate any other provision of this Note.
If this Note is placed in an attorney's hands for collection, or collected by suit or through the
bankruptcy or probate, or any other court, either before or after maturity, there shall be paid to the
holder of this Note, to the extent permitted by law, reasonable attorney fees, costs and other
expenses incurred by the holder in enforcing the terms of this Note.
It is certified and recited that there have been performed and have been met in regular and
due form, as required by law, all acts and conditions necessary to be performed by the Borrower or
to have been met (i) precedent to and in the issuing of this Note in order to make it legal, a valid and
binding obligation of the Borrower, and (ii) precedent to and in the execution and delivery by the
Borrower of the Loan Agreement and the Security Agreement; and that no constitutional or statutory
limitation have been exceeded in issuing this Note.
This Note is executed in Dublin, Ohio, and shall be construed in accordance with the laws
of the State of Ohio.
CITY OF DUBLIN
Terry Foegler, City Manager
SIB Loans~Dublin 5 25 09 REPLACEMENT NOTE
Page 2 of 2
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Schedule B ~ ~ ' ` ~`~~'~ ~` _
State of Ohio -Ohio Department of Transportation
City of Dublin
Avery-Murfield Drive / US 33 Interchange Improvement
Loan Amortization
State
Administrative Outstanding
Principal Lnerest* Fee ~ Accrued Total Balance
Date Payment Payment 0.25 % Interest Payment on Loan
Closing Date 4/7/1999 0.00 0.00 0.00 0.00 0.00 8,055,000.00
Pmt. Waived IOn/2000 0.00 0.00 0.00 0.00 0.00 8,055,000.00
Pmt. Accrued 4/7/2001 0.00 120,825.00 10,068.75 130,893.75 0.00 8,185,843.75
Pmt. Accrued 10/7/2001 0.00 120,825.00 10,068.75 130,893.75 0.00 8,316,787.50
Prnt. Begins 4n2002 160,154.69 124,751.81 10,395.98 0.00 295,302.48 8,156,632.81 3.25%
IOn/2002 162,757.20 122,349.49 10,195.79 0.00 295,302.48 7,993,875.61 3.25%
4/7/2003 165,402.01 119,908.13 9,992.34 0.00 295,302.48 7,828,473.61 3.25%
lOnQ003 168,089.79 117,427.10 9,785.59 0.00 295,302,48 7,660,383.82 3.25%
4/7/2004 170,821.25 114,905.76 9,575.48 0.00 295,302.48 7,489,562.57 3.25%
lOn/2004 173,597.09 112,343.44 9,361.95 0.00 295,302.48 7,315,965.48 3.25% 1,000,822.02 32,526.72
4/7/2005 165,748.64 146,319.31 9,144.96 0.00 321,212.91 7,150,216.84 4.25%
10/7!2005 169,270.80 143,004.34 8,937.77 0.00 321,212.91 6,980,946.04 4.25%
4n/2006 172,867.80 139,618.92 8,726.18 0.00 321,112.91 6,808,078.23 4.25%
IOn/2006 176,541.24 136,161.56 8,510.10 0.00 321,212.91 6,631,536.99 4,25%
4n/2007 180,292.75 132,630.74 8,289.42 0.00 321,212.91 6,451,244.24 4.25%
IOn/2007 184,123.97 129.024.88 8,064.06 0.00 321,212.91 6,267,120.28 4.25%
4n/2008 188,036.60 125,342.41 7,833.90 0.00 321,212.91 6,079,083.67 4.25%
lOn/2008 192,032.38 121,581.67 7,598.85 0.00 321,212.91 5,887,051.30 4.25%
4n/2009 196,113.07 117,741.03 7,358.81 0.00 321,212.91 5,690,938.23 4.25%
lOn/2009 200,280.47 113,818.76 7,113.67 0.00 321,212.91 5,490,657.76 4.25% 1,825,307.72 77,575.58
4n12010 204,[34.07 137,266.44 6,863.32 0.00 348,263.83 5,286,523.69 5.25%
IOn/2010 209,492.59 132,163.09 6,608.15 0.00 348,263.83 5,077,031.11 5.25%
4n/2011 2[4,991.77 126,925.78 6,346.29 0.00 348,263.83 4,862,039.34 5.25%
IOn/2011 220,635.30 121,880.98 6,077.55 0.00 348,263.83 4,641,404.04 5.25%
4n/2012 226,426.98 116,035.10 5,801.76 0.00 348,263.83 4,414,977.07 5.25%
IOn/2012 232,370.68 110,374.43 5,518.72 0.00 348,263.83 4,182,606.38 5.25%
4nR013 238,470.41 104,568.16 5,228.26 0.00 348,263.83 3,944,135.97 5.25%
IOn/2013 244,730.26 98,603.40 4,930.17 0.00 348,263.83 3,699,405.70 5.25%
4/712014 251,154.43 92,485.14 4,624.26 0.00 348,263.83 3,448,251.27 5.25%
IOn/2014 257,747.24 86,206.28 4,310.31 0.00 348,263.83 3,190,504.04 5.25% 2,300,153.72 120,758.07
4n/2015 276,711.04 95,715.12 3,988.13 0.00 376,414.29 2,913,792.99 6.25
IOn/2015 285,358.26 87,413.79 3,642.24 0.00 376,414.29 2,628,434.73 6.25%
4n/2016 294,275.71 78,853.04 3,285.54 0.00 376,414.29 2,334,159.02 6.25%
lOn/2016 303,471.83 70,024.77 2,917.70 0.00 376,414.29 2,030,687.19 6.25%
4/7/2017 312,955.32 60,920.62 2,538.36 0.00 376,414.29 1,717,731.88 6.25%
10/7/2017 322,735.17 51,531.96 2,147.[6 0.00 376,414.29 1,394,996.70 6.25%
4/7/2018 332,820.65 41,849.90 1,743.75 0.00 376,414.29 1,062,176.05 6.25%
lOn/2018 343,221.29 31,865.28 1,327.72 0.00 376,414.29 718,954.76 6.25%
4/7/2019 353,946.96 21,568.64 898.69 0.00 376>414.29 365,007.80 6.25%
10/7/2019 365,007.80 10,950.23 456.26 0.00 376,414.29 0.00 6.25% 3,190,504.03 199,406.50
TOTAL 8,316,787.50 3,935,448.53 240,276.72
• Interest was assessed as follows:
Years 2-5: 3.00%
Years 6-I0: 4.00%
Years 11-I5: 5.00%
Years 16-20: 6.00°/
Average Interest hate: 4.58
261,787.50 12,230,725.24
430,266.87
5.17%
McDonald Investments Inc. 2/24/2009
Dublin -Avery/Muirfield Interchange
SIB Loan payment Schedule
, ~.
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Capitalized Interest Payment go Additional Outstanding Balance
Date Principal Payment Interest 3% Total Payment Interest Accrual Disbursements on Loan
$8,055,000.00
07-Apr-00 $0.00 50.00 0.00 50.00 50.00 $0.00 $8,055,000.00
07-Oct-00 50.00 50.00 0.00 $0.00 SO.00 $0.00 $8,055,000.00
07-Apr-Ol $0.00 $0.00 0.00 $0.00 $130,893.75 50.00 $8,185,893.75
07-Od-Ol $0.00 50.00 0.00 $0.00 5130,893.75 50.00 $8,316,787.50
1st Payment 07-Apr-02 $154,746.33 $5,408.35 124,335.79 $295,302.48 $0.00 $0.00 $8,156,632.82
07-Oct-02 $157,260.96 $5,496.23 121,926.70 $295,302.48 $0.00 50.00 $7,993,875.62
07-Apr-03 $159,816.45 55,585.55 119,478.48 $295,302.48 $0.00 50.00 $7,828,473.62
07-Od-03 $162,413.47 55,676.31 116,990.47 $295,302.48 50.00 $0.00 $7,660,383.84
07-Apr-04 5165,052.69 55,768.55 114,462.03 $295,302.48 50.00 $0.00 $7,489,562.59
07-Oct-04 $167,734.79 $5,862.29 111,892.49 5295,302.48 $0.00 $0.00 $7,315,965.50
07-Apr-OS $195,677.77 55,510.75 110,455.53 $321,212.91 $0.00 $0.00 $7,114,776.99
07-Od-OS 5198,857.53 55,627.85 107,401.14 $321,212.91 $0.00 $0.00 $6,910,291.60
07-Apr-06 $202,088.96 $5,747.45 104,296.52 $321,212.90 $0.00 $0.00 $6,702,455.19
07-Oct-O6 $205,372.90 55,869.58 101,140.84 $321,212.90 $0.00 $0.00 56,491,212.71
07-Apr-07 $208,710.22 $5,994.31 97,933.26 $321,212.91 50.00 $0.00 $6,276,508.18
07-Oct-07 $212,101.76 56,121.69 94,672.93 $321,212.91 50.00 50.00 $6,058,284.73
07-Apr-08 $215,548.42 56,251.77 91,358.96 5321,212.91 $0.00 $0.00 $5,836,484.54
07-Oct-08 $219,051.08 $6,384.62 87,990.48 $321,212.91 $0.00 $0.00 $5,611,048.84
07-Apr-09 5207,323.24 $6,890.28 83,635.72 $305,393.07 $0.00 $0.00 55,396,835.32
07-Oct-09 $210,692.24 $7,002.25 80,413.90 5305,393.07 50.00 50.00 55,179,140.82
07-Apr-10 $214,115.99 $7,116.04 77,139.73 $305,393.07 50.00 $0.00 $4,957,908.80
07-Oct-10 $217,595.37 57,231.67 73,812.35 5305,393.07 $0.00 $0.00 54,733,081.75
07-Apr-11 $221,131.30 57,349.19 70,430.91 5305,393.07 $0.00 $0.00 $4,504,601.26
07-Oct-11 $224,724.68 57,46$.61 66,994.51 $305,393.07 50.00 $0.00 $4,272,407.96
07-Apr-12 $228,376.46 $7,589.98 63,502.28 $305,393.07 $0.00 $0.00 $4,036,441.52
07-Od-12 $232,087.58 57,713.32 59,953.30 5305,393.07 $0.00 $0.00 53,796,640.63
07-Apr-13 $235,859.00 $7,838.66 56,346.64 $305,393.07 $0.00 $0.00 $3,552,942.98
07-Oct-13 $239,691.71 $7,966.03 52,681.38 $305,393.07 $0.00 $0.00 $3,305,285.23
07-Apr-14 $243,586.70 $8,095.48 48,956.55 $305,393.07 $0.00 $0.00 53,053,603.05
07-Od-14 5247,544.98 $8,227.03 45,171.20 $305,393.07 50.00 50.00 $2,797,831.03
07-Apr-15 $251,567.59 $8,360.72 41,324.34 $305,393.07 $0.00 $0.00 $2,537,902.72
07-Oct-15 $255,655.56 $8,496.59 37,414.96 $305,393.07 50.00 $0.00 $2,273,750.57
07-Apr-16 $259,809.96 $8,634.66 33,442.06 $305,393.07 $0.00 50.00 $2,005,305.96
07-Oct-16 $264,031.88 58,774.97 29,404.60 $305,393.07 $0.00 50.00 $1,732,499.11
07-Apr-17 $268,322.39 $8,917.56 25,301.52 5305,393.07 $0.00 $0.00 $1,455,259.15
07-Oct-17 $272,682.63 $9,062.47 21,131.77 $305,393.07 $0.00 $0.00 $1,173,514.05
07-Apr-18 $277,113.73 59,209.74 16,894.28 $305,393.07 $0.00 $0.00 $887,190.59
07-Oct-18 $281,616.82 $9,359.40 12,587.91 5305,393.07 50.00 $0.00 $596,214.37
07-Apr-19 $286,193.10 59,511.49 8,211.57 $305,393.07 50.00 $0.00 $300,509.78
07-Oct-19 $290,843.74 $9,666.05 3,764.11 $305,393.07 $0.00 $0.00 50.00
$0.00 (50.00) 0.00 50.00 50.00 $0.00 50.00
$8,055,000.00 $261,787.50 2,512,851.20 531,060,165.68 $261,787.50 $0.00
• Unpaid Principal Payments + Unpaid Capitalized Interests =Outstanding Balance on Loan