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Development Manager Lazan explained there would be no problem obtaining senior rents. He <br />said the deal would need to be restructured. He added one of the concepts is to roll the funding <br />in for the ramp. The proceeds could provide permanent funding for the rail stop. He also noted <br />the HRA could explore using Interfund loans for construction. <br />There was discussion on how the funds would be used as they were paid back. Discussion also <br />took place on the amount needed to keep the projects going. <br />City Administrator Ulrich offered to research the possibility of internal lending and how it could <br />fill in the gaps. <br />Development Manager Lazan itemized the order of repayment of debt: F&C Project Operations; <br />F&C Corporate; Personal Guarantees; TIF 14 Proceeds; and then a Tax Levy. There are more <br />than several options before the possibility of a tax levy becomes viable. <br />Vice Chair Ramsey questioned what the debt service is on a $9 million bond over 20 years. <br />Finance Director Lund answered it is $750,000 to $800,000 per year for over 10 years. <br />Commissioner Elvig stated he is concerned with cash flow. He said the key to this is the reach <br />back. He noted there are more numbers to analyze. He asked what the timeframe is to coincide <br />with the timing on the ramp. <br />City Administrator Ulrich responded the HRA is scheduled to authorize bids next Tuesday. The <br />contract would be authorized in June. This is pushed back as far as possible to avoid winter <br />construction. <br />Commissioner Tossey expressed his concern that he sees this as a risk for the taxpayers and he <br />has not seen anything that proves otherwise. <br />Commissioner Elvig stated he would like to see staff present re -analyzed numbers to show the <br />HRA's maximum exposure. He said he will hold back on a decision until he sees how the <br />numbers go together. <br />Vice Chair Ramsey pointed out no one is going to agree to the deal now; the numbers have to be <br />considered more closely. He noted there is $250 million coming in with this deal and two others, <br />and at that point, the citizens are not at risk. <br />Commissioner Backous stated he is keeping an open mind but would like to see facts instead of <br />concepts. He added there is a lot of risk to this development. <br />Consensus was reached to direct staff to move forward to further consider the financial impact of <br />the project, with further discussion at the next HRA meeting. <br />Housing and Redevelopment Authority / May 3, 2011 <br />Page 3 of 4 <br />