Minutes - Council - 02/10/2004 - Laserfiche WebLink

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Councilmember Elvig clarified the City played a role to bridge the finances on a no-money transaction for approximately six months. This will ultimately be paid off by the bond note or another source. Councihnember Zimmerman inquired how money borrowed by the City would relate to this and the City being bank qualified. Finance Officer Lund explained if the City stays under the ten million dollars the school would be responsible for any fees associated with the City being non-bank qualified. Motion by Councihnember Cook, seconded by Councilmember Kurak, to adopt Resolution #04- 02-041 authorizing the issuance of approximately $11.8 million in lease revenue bonds for Pact Charter School and the execution of various documents in connection with the school project. Councilmember Kurak clarified the City is not financing anything with these bonds. This is merely a pass through bond and the City is covered on the back end so their rate is still protected by this escrow fund. Finance Officer Lund noted last year when the City issued its capital equipment certificates in 2003, PACT Charter School wanted to complete the bond issue in December. The school did pay an amount of $14,000 because this made the City non-bank qualified. Councilmember Elvig questioned if staff is certain that 8.9 million dollars is an ample bond amount for the City this year. Finance Officer Lund explained if the City bonds over ten million dollars they would become non-bank qualified themselves and the escrow would not be required from the school. City Attorney Goodrich explained the City will have a better picture of the amounts by the time these bonds are sold. If the City needs to go up an extra two million dollars they could do that the day before the bonds are sold. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Cook, Kurak, Elvig, Pearson, Strommen, and Zimmerman. Voting No: None. Case #3: Request for Comprehensive Plan Amendment; Case of Scott Hagen Comlmmity Development Director Frolik explained the 2001 Comprehensive Plan shows the parcel south of Highway 10, immediately west of Llama Street, as Medium Density Residential. A commercial use, Hi-Ten Sports, has been operating on the parcel for many years. In the process of selling the property, the owner and staff became aware of the parcel's Medium Density Residential land use designation. She explained the parcel was shown with a Comlnercial land use in earlier drafts of the Comprehensive Plan. Staff was unable to determine the rationale for changing the parcel's designation to Residential in the adopted Comprehensive Plan. Staff feels that the existing commercial use of the property is more compatible with the other commercial uses to the east in Alpaca Estates rather than as a Medium Density Residential City Council/February 10, 2004 Page 9 of 18