07-08-09 Council Minutes - Laserfiche WebLink

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MINUT)iS CITY COUNCIL JULY 8, 2009 FL)CUR taxable bonds would need to be sold to finance the housing improvement ROYALS area debt for Canabury Condominiums. Therefore, the interest that would be generated from the fee balances would be utilized to support the taxable bond. However, with the number of prepayments that were received Ramsey County's low-interest money is fully financing the HIA #2 debt. Therefore, the City Administrator recommended that HIA #2, Canabury Condominiums be modified to allow properly owners to pay off their HIA fees early, if they so desire. The payments would be handled similar to special assessments. As a result, accepting prepayments will not be problematic given the lower interest rate and the fact there are no call dates associated with the debt. The City Administrator reported that the wine situation exists for Housing Improvement Area #3, Fleur Royale. Keis pointed out that this may not be possible with other Housing lmproveinent Areas. The City Administrator replied that that was correct. He noted that it will not be an option with HIA #1, Canabury Square, given the size of the debt may be too high to allow the City to finance it as an internal investment. Linda Foth, a member of the Canabury Condominium Board of Directors, appeared before the Council and thanked them for their consideration of this matter. She also thanked the City Administrator for his assistance. There was no one else from the general public present wishing to comment on this matter. upon motion by Montour, seconded by McGraw, the public hearing was closed. Mayor Blesener opened the Public Hearing to consider an amendment to Housing Improvement Area #3, Fleur Royale, which would allow for the prepayment of HIA fees. The City Administrator again indicated that the same situation exists for Housing Improvement Area #3, and recommended that the HIA ordinance be amended to allow for prepayments. The only difference is the City is internally financing less than $150,000 of the debt in combination with Ramsey County money. Paul Zigenhagen, Fleur Royale, asked the final deadline for full payment. The City Administrator indicated that payment should be made by November 15°i. After that date, the balance will be certified to Ramsey County for collection with property taxes commencing in 2010. However, the debt can be prepaid in full at any time prior to maturity.