10/04/99 Special Meeting - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY BUSINESS Case #1: Bonding for Fire Station #1 City Administrator Jim Norman provided some background information to the Economic Development Authority regarding the fire station project, the budget situation created by levy limits and the manner by which the City came to consider the option of lease revenue bonds to fund the fire station project. He then introduced the City's financial consultant, Sharon Klumpp of Springsted Incorporated. Ms. Klumpp presented examples from surrounding communities where this method of bonding had been used for similar facilities projects. She described the process and project timeline to members and responded to several questions from members regarding the process and timeline. Commissioners expressed concerns about the short time to review the agenda prior to the meeting, they requested more information be prepared in the agenda packets in the future, and they wanted some additional assurance that the City Council was comfortable with the EDA exercising these bonding powers. In addition, the EDA members stated that they were uncomfortable approving the Redevelopment Plan without more specifics regarding the project site, the redevelopment area, and the relationship of "redevelopment" to the subject land that is vacant, and currently used for agricultural purposes. City Administrator Jim Norman stated that this method of financing had only begun to be considered a month prior to the meeting. The staff turn-around time to schedule the meeting and prepare an agenda was about two weeks. The City was not withholding or delaying communication to the EDA members on this issue. In fact, the City staff made its best effort to bring it before the EDA for consideration as quickly as possible. Some of the EDA members' legal questions regarding the redevelopment site and plan had to be forwarded to Briggs & Morgan for their response. Discussion continued regarding the two resolutions before the EDA members for their consideration and action. Motion by Commissioner Wagner and seconded by Councilmember Connolly to adopt Resolution 99-10-190 establishing procedures relating to compliance with reimbursement bond regulations under the internal revenue code. Motion carried. Voting Yes: Vice Chairperson Scheiber, Commissioner Wagner, Councilmember Anderson, and Councilmember Connolly. Voting No: Commissioner Riley. Absent: Commissioner Hardin and Councilmember Zimmerman. Motion by Commissioner Wagner and seconded by Councilmember Connolly to table action on the resolution initiating the process for adoption of redevelopment plan with City Council and approving redevelopment project area and plan to a special meeting of the Economic Development Authority at 7:30 a.m. on October 13, 1999 in order for Briggs and Morgan to Economic Development Authority/October 4, 1999 Page 2 of 3