DATE: October 21, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, Assistant City Administrator
SUBJECT:
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Consideration of Waiver of Conflict for Representation of Public Building Authority related to the Modification of Loan Agreement with City of Franklin.
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the representation of the Public Building Authority in the Loan Agreement modification between the Building Authority and the City of Franklin.
Background
In structuring the 2007 Capital Improvement bond issue, the Franklin Public Building Authority issued the bonds and provided funds to the City through a loan agreement. Doug Berry represented the Building Authority then, and continues to do so at the present time. As counsel to the PBA, he will be asked to review the documents involved. Because of his engagement in other City matters, a waiver of conflict must be given in order to proceed with the amendment of the loan agreement between the City and the Building Authority. Such an amendment is needed in order to facilitate a change in the swap and credit provider from Depfa Bank to another financial entity or entities.
Financial Impact
The waiver of conflict creates no financial impact that would not otherwise be incurred in review of the loan agreement and related documents.
Recommendation
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Staff recommends approval of the waiver in order to move forward with the change in banking relationships.