Minutes - Economic Development Authority - 01/01/2005

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Chairperson Riley inquired about the $1,500,000 set aside for parking. Finance Officer Lund replied that is for 103 stalls, which are the share of staff parking related to the municipal center. Mary Ippel of Briggs and Morgan explained the municipal center portion of the parking ramp has been included in this bond issue. Chairperson Riley asked how the rest of the parking facility will be paid for. Finance Officer Lund replied bonds will be issued and the Town Center area will be assessed for 50% of the cost. Member Elvig noted there is a 2.2 million dollar grant from the Metro Council and a $420,000 grant fi'om MnDOT. Chairperson Riley stated he agrees with many of the points laid out in Member Gromberg's nlelTlO. Motion by Member Elvig, seconded by Member Kiefer, to authorize the adoption of Resolution #05-05-XXX authorizing the issuance of $19,200,000 Public Project Lease Revenue Bonds, Series 2005A and the execution of delivery of a Ground Lease Agreement, a Lease Agreement and an Indenture of Trust. Further discussion: Member Elvig stated he disagrees with Member Gromberg's memo. There are a couple of reasons for utilizing lease revenue bonds. There is certain amount of redevelopment on Highway 10, and if it were not for the City this redevelopment would not happen. He stated part of what is being done with the lease revenue bonds actually improved some of the ratings. Mr. Donna stated the financing turned out as good as the City could have hoped for with the Triple A rating and the market being timed just right. All in all, the G.O. bond would have a slightly lower interest rate, but that gap has been closed. The additional expenses have shrunk from approximately $600,000 to half of that amount. Motion carried. Voting Yes: Members Elvig, Kiefer, LeTourneau, Steffen, and Strommen. Voting No: Chairperson Riley. Absent: Member Gromberg. Member Kiefer, Mr. Donna, Ms. Ippel and Finance Officer Lund left the meeting at 8:14 a.m. Town Hall Member Elvig stated he was approached by Landmark Bank with questions about what is going on with the old Town Hall. The bank indicated they might have interest in renting or purchasing the building. He stated to the best of his recollection the EDA was given charge to decide what can be done with the building. City Administrator Norman informed him he felt the Council gave a consensus at a worksession to pull the issue back under the Council. Economic Development/TIF Specialist Sullivan indicated the EDA made some recommendations regarding the Town Hall. One of the recommendations was to move it to Town Center, but there were costs associated with that. Economic Development Authority/May 24, 2005 Page 4 of 8