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MINUTES <br />CITY COUNCIL <br />September 13, 1989 <br />Brad Farnham, Juran & Moody, appeared before the <br />Council along with Mary Ippel, Briggs and Morgan, to <br />discuss a variation of the appropriation lease which <br />could be used as a financing option for a new fire <br />station. This would eliminate the need for a <br />referendum. <br />Farnham reported that rates for this instrument are <br />just a little above those for general obligation bonds. <br />The instrument is also outside of the City's levy <br />limits and debt limits. However, it requires that the <br />City have a Housing Redevelopment Authority or an <br />Economic Development Authority in place. <br />Ippel outlined the actions of the State Legislature <br />that created the instrument beinq discussed. Ippel <br />also described the need for the City to establish <br />either an HRA or EDA. Ippel reported that an EDA <br />incorporates all the powers of an ARA, therefore, it <br />may be preferable for the City to establish an EDA. <br />Ippel also reported that if the City can show that the <br />project will aid economic development and there are <br />benefits in health and public safety issues, the City <br />will be able to use the financing instrument. <br />Ippel reported that in order the create an ARA or EDA <br />the City will have to create a redevelopment project <br />area and establish a redevelopment plan. The HRA or <br />EDA would be issuing the revenue bonds, and the City <br />would enter into a long-term installment purchase <br />contract for the bonds. <br />Fahey pointed that the site selected for the new fire <br />station has three existing older homes located on it <br />which would need to be removed. This would result in <br />the redevelopment of the property, and enhance the <br />likelihood of further redevelopment in the area. Fahey <br />pointed out that the area is zoned commercial, however, <br />there are existing homes in this commercial area. <br />Fahey also pointed out that further north on <br />Centerville Road there is undeveloped Industrial land. <br />Blesener pointed out that a study of the City resulted <br />in the selection of the site under consideration as the <br />one that was best located to provide fire protection to <br />the City. <br />Fahey pointed out that the City began considering the <br />idea of a referendum to construct a new fire station <br />after the City Auditor reported that the General Fund <br />Page 20 <br />