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MINUTES <br />City Council <br />March 17, 1987 <br />Public <br />Hearing <br />Securitized <br />Development <br />Bonds of 1987 <br />Agenda <br />Item No. 5 <br />Mayor Fahey opened the public hearing on the proposal of Securitized <br />Development Bonds. <br />Steve Mattson, Juran & Moody, appeared before the Council to explain <br />the proposal. Mattson reported that Juran & Moody will be putting <br />together a snydication of 8 cities and 1 county that will participate <br />in the bond sale. The estimated amount of the bonds is $330,000,000. <br />The bonds will then be sold to a large financial institution at a <br />slightly higher rate to cover the costs of issuing the bonds. After <br />that step, there will be approximately $210,000,000 available to <br />the cities and county participating in the sale for local developers. <br />This money can be loaned at lower than market interest rates. <br />Mattson explained that the purpose of the proposal is to take <br />advantage of the present low interest rates and put together a <br />program that will be attractive to developers should interest rates <br />rise. <br />Mattson also explained that the proposal will work even if there is <br />no money drawn by developers as the contract is guaranteed through <br />the sale to a highly-rated financial institution. <br />Mattson estimated that this money would be attractive to developers <br />and the proposal feasible over the next three to five years. <br />Fahey asked how long before money would be available for loans to <br />developers. <br />Mattson replied that it could be available as quickly as within 90 <br />days. Mattson also explained that the money will become available <br />over a period of 16 quarters, so not all of the estimated $210,000,000 <br />will be available immediately. <br />There was no one from the general public wishing to be heard. <br />Mrs. Scalze introduced the following resolution and moved its adoption: <br />RESOLUTION N0. 87-3-104 - CLOSING THE <br />PUBLIC HEARING ON THE PROPOSAL OF SECURITIZED <br />DEVELOPMENT BONDS OF 1987 <br />The foregoing resolution was duly seconded by Mr. Collova. <br />Ayes (4) Scalze, Collova, Fahey, LaValle. <br />Nays (0). <br />Resolution declared adopted. <br />This resolution appears in Resolution Book No. 17, Page 112. <br />Mr. Fahey pointed out that the Council has discussed this proposal <br />in detail at a previous workshop meeting. <br />Page -2- <br />