02/02/05 Special Meeting - Laserfiche WebLink

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Case #1: Lease Revenue Bonds for Municipal Center Assistant City Administrator Nelson presented information about the bonding process that would fund the construction of the new Municipal Center. She explained that the City Council had made a motion at the January 25, 2005 council meeting in favor of constructing and funding the Municipal Center through the Lease Revenue Bond process. She also indicated that the resolutions presented to the EDA would start the process needed to implement the Lease Revenue Bond financing structure for the Municipal Center project. It was noted that the final costs were still under consideration due to the fact that bids were not let at this time. Member Elvig commented that the Lease Revenue Structure of the bonds would allow the bond levy to be spread over the commercial and :residential tax base. The other types of financing would be restricted to the residential properties. Assistant City Administrator Nelson noted that the information differentiating the funding methods was an attachment to the case. Finance Director Lund stated that the Lease Revenue Bond structure was the same method of financing that was used for Fire Station No. 1 Member Gromberg questioned whether this project would be considered a redevelopment site. Member Elvig stated the Bond Council had drafted the documents and that it was their opinion that this project was within the law. Chair Riley commented that CIP Bonds were available to fund City Hall Projects and that the Lease Revenue Bond method is used to circumvent the referendum process. Chair Riley also disagreed with the redevelopment definition. Riley also commented that development would occur regardless of the City putting in a new Municipal Center. Member Elvig stated that the City participation in this project is why the development is happening and that the Municipal Center would be more City participation. Member Strommen acknowledge that development would probably occur without the Municipal Center but questioned the quality of that development and its overall fit to the Town Center planning. Member Riley asked if Section I. sub heading B (Statement) could be removed from the Redevelopment Plan for Municipal Center Project dated March 9, 2005 could be removed due to its definition of redevelopment. It was also requested that the Bond Attorney review the documentation or attend the meeting for explanations. Member Keifer stated the laws are based on previous rulings and that this type of financing has been done for this type of project in the past. To this point he was not aware of any legal challenges to this type of project. Economic Development Authority/February 2, 2005 Page 2 of 4