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SALE OF INTERESTS IN LEASE PAYMENTS BY
<br /> THE CITY OF EVERETT, WASHINGTON, AS LESSEE,
<br /> UNDER A LEASE (WITH OPTION TO PURCHASE)
<br /> FOR THE COMMUNITY THEATER
<br /> (CERTIFICATES OF PARTICIPATION, 1993)
<br /> $8,535,000
<br /> BID FORM
<br /> William Cushman
<br /> Finance Director
<br /> City of Everett
<br /> Everett,Washington
<br /> Dear Sir:
<br /> The City of Everett, Washington ("City"), pursuant to a construction contract between the City and
<br /> Colby Square Partners, L.P. ("Contractor"), dated November 15, 1991 ("Construction Contract"), for
<br /> the construction of a community theater, and a syndication agreement between City and Contractor
<br /> dated December 19, 1991, and on behalf of the Contractor, has invited bids for all right, title and
<br /> interest of Contractor in a lease with option to purchase, as amended (the "Lease"), certain real
<br /> property and certain improvements built thereon (collectively, the"Contractor's Interests").
<br /> For the Contractor's Interests, we will pay $8,535,000 in order to issue certificates of participation
<br /> ("Certificates") evidencing undivided proportionate interests in certain of the payments ("Lease
<br /> Payments") made by the City under the Lease, as set forth below.
<br /> The total principal component of the Lease Payments to be evidenced by Certificates shall be
<br /> $8,535,000. Principal components shall be due annually on March 1 according to a schedule to be
<br /> prepared by the City. Interest components shall accrue from the date of delivery of the Certificates,
<br /> payable on March 1, 1994, and semiannually thereafter on each September 1 and March 1 until
<br /> expiration of the Lease on March 1, 2008. After the date of delivery of the Certificates, payments
<br /> due under the Lease may be prepaid on any Lease Payment Date on and after March 1, 2003, at the
<br /> price of the outstanding principal balance of Lease Payments plus any accrued interest to the date of
<br /> prepayment.
<br /> Pursuant to a trust agreement that we will enter into with Seattle-First National Bank, as trustee
<br /> ("Trustee"), the Contractor's Interests will be assigned by Contractor to the Trustee, and the Trustee
<br /> will execute and deliver the Certificates to us or our designees. The principal component of the
<br /> Lease Payments remaining outstanding from and after the date of delivery of the Certificates, and
<br /> the interest component of such Lease Payments will constitute the interest payable with respect to
<br /> the Certificates. The payment dates, maturity schedule, interest rates, and other terms of the
<br /> Certificates will be consistent with the provisions of the Lease. Pursuant to the Trust Agreement,
<br /> the Trustee will hold the Contractor's Interests in trust for the benefit of the Certificate Owners.
<br /> The Schedule of the Lease Payments to be evidenced by Certificates, interest rates, the total interest
<br /> cost, and the true interest cost upon which this bid is based are as follows:
<br /> Payment Date Principal Interest Payment Date Principal Interest
<br /> (March 1) Component Rate (March 1) Component Rate
<br /> 1994 $320,000 S X 5-% 2002 $590,000 5`• IC) %
<br /> 1995 395,000 S.2 5 % 2003 620,000 20 %
<br /> 1996 420,000 S 15 % 2004 655,000 5. 30%
<br /> 1997 445,000 •25% 2005 690,000 5'/O %
<br /> 1998 475,000 % 2006 730,000 5.5 0 %
<br /> 1999 505,000 •LS °Ic 2007 775,000
<br /> 2000 535,000 % 2008 820,000 `0%
<br /> 2001 560,000 '> %
<br /> iv
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