New Community Center FAQ
For the duration of the construction, programs will take place in the temporary portables in Lot X between the Lions Hall and the tennis courts in Washington Park. The Lions Club has also generously offered the use of their hall for programming. Also, programming will continue on the Burlingame School District and Mercy High School campuses. During COVID-19, programming may be limited by the San Mateo County Health Orders.
The total cost of the new Community Center is $52.3 million. The City is paying for the project using a combination of lease revenue bond funds and monies from the City’s Capital Investment Reserve. In November 2017, the voters of Burlingame generously approved the Measure I quarter-cent sales tax measure. The City is using a portion of Measure I ($1 million), plus $1 million from the General Fund, to pay the annual debt service on the 2019 Lease Revenue bonds, which provided nearly $39 million in proceeds specifically for the construction of the new Community Center. The General Fund has invested $2.7 million, and the Capital Investment Reserve is contributing the balance of $10.6 million.
Bonds are instruments of debt; a bond issuance is like a mortgage that you owe to the many bondholders. The bonds are held in the Project Fund by the City’s custodian, US Bank, for the intended purpose of financing the construction of the Burlingame Community Center.
The bond issuance was sold in December 2019, yielding nearly $39 million in proceeds.
The bonds will be totally repaid by July 1, 2049 (30 years).
No. However, any individual bondholder may choose to sell their bond to another investor.
No. The City can only use the bond money for construction costs associated with the new Community Center. The money cannot be used for any other purpose.
The bond proceeds have been deposited in the Project Fund with the City’s custodian, US Bank. US Bank will use the bond funds to reimburse the City for costs associated with the construction of the New Community Center.
US Bank will only reimburse the City for costs associated with the construction of the New Community Center. (The City will first draw on the bond proceeds to pay the cost of construction of the New Community Center. Once those funds are depleted, the funds will be drawn from funds available in the City’s Capital Investment Reserve.) If the funds are not spent in a timely manner for the intended purpose, the IRS could withdraw the City’s tax-exempt status, making the bonds much more costly to hold, and negatively impacting the City’s bond rating.
A chronicle of the entire process that began in January, 2013 can be found here www.burlingame.org/communitycenter. Scroll to the bottom of the page to read the information from the beginning.