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MINUTES <br />CITY COUNCIL <br />AUGUST 13, 2003 <br />Mr. Blesener introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2003-H-1 S - AD.IOURNING AS THE ECONOMIC <br />DEVELOPMENTAUTHORITYAND RECONVENING AS THE CITY <br />COUNCIL. <br />The foregoing resolution was duly seconded by Montour. <br />Ayes (5) Blesener, Montour, Anderson, Fahey, LaValle. <br />Nays (0). Resolution declared adopted. <br />DISTRICT The City Administrator reviewed the key details of the proposed <br />COUNCIL 82 Development Agreement with District Council 82 as outlined in his <br />DEVELOPMENT August 8, 2003 report. The Administrator noted that the terms <br />AGREEMENT of the TIF assistance will include an advance of funds by the City to the <br />developer via an interfund loan and the use of this advance as an <br />investment of City funds at a fixed interest rate at 5.5% for the projected <br />17-year term of the District. The Administrator discussed the potential <br />impact that additional State property tax reform, noting that if changes <br />result in tax reductions, the TIF guarantee will then kick in. The <br />Administrator noted that cities have gotten away from financing TIF <br />assistance with bonded transactions given problems that were experienced. <br />However, the City has built a number of protections into this transaction <br />and tax reform concerns are not likely to be as onerous as the 2002 <br />impacts. <br />Council also discussed the fixed 5.5% interest rate over a 17-year period, <br />and the City Administrator noted he could not get that rate today fora 10- <br />year investment for the City. Given the averaging effect of a 5.5% interest <br />rate over 17 years, it was the consensus of the Council that this rate was <br />acceptable. <br />Mr. LaValle introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2003-8-180 -APPROVING THE DISTRICT <br />COUNCIL. 82 DEVELOPMENT AGREEMENT AS RECOMMENDED <br />73Y THE CITYADMINISTRATOR SUBJECT TO RF.VIEWAND <br />APPROVAL BYI30ND COUNSEL. AND THE CITYATTORNEY, <br />.SUBJECT TO EXECUTION OF TILE DEVELOPMENT <br />AGREEMENT WITHDRYWAL7 SUPPLY, AND AUTHORIZING <br />THE MAYOR AND CITYADMINISTRATOR TO EXECUTE THE <br />AGREEMENT ON BEHALF OF THE CITY <br />