How the bond bank could structure a city loan: legal authority and repayment routing explained

During the joint meeting, a bond-bank representative described the statutory basis for transferring funds to and from the bond bank and outlined options for structuring the city's role if the bond bank makes a loan to the redevelopment commission.

"We would structure an agreement with the bond bank on top of the agreement that the bond bank structures with county redevelopment," the bond-bank representative said, explaining that transfers back to the city could be made as payments are received or on an annual basis. The representative referenced prior uses of state authority to legitimize such transfers.

Council member Dylan Little asked whether the city could require that interest and payments be returned into the city's MDF account. The representative said that, in principle, the bond bank could structure that routing, but the specific mechanics would be spelled out in the bond-bank agreement and any necessary interlocal agreements.

No final legal documents were approved at the meeting; council members requested legal review and asked staff to arrange a more detailed bond-bank briefing with project representatives so the bond bank and city legal staff can draft the required documents if the parties proceed.