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MINUTES <br />CITY COUNCIL <br />September 27, 1989 <br />The City would sell revenue bonds that would be payable <br />solely from payments under the installment purchase <br />contract. The Department of Revenue has determined in <br />similar financing that any levies made by the City and <br />used to pay bonds must be made to another municipality. <br />An EDA or HRA would be considered a separate <br />municipality. <br />Fahey asked the timeframe for establishing an EDA. <br />Ippel reported that the Council should first determine <br />if it wants to establish an EDA or an HRA. Ippel <br />reported that she would recommend an EDA since an EDA <br />has additional powers. <br />Fahey reported that he has discussed with a developer <br />the possibility of a senior citizen housing project <br />that would be owned by an HRA established by the City <br />and financed by the FHA. The proposal includes a <br />management company running the project and subsidized <br />rents. <br />Ippel reported that an EDA could be used for this <br />purpose as well. However, Ippel reported that the <br />proposal described by Ippel must meet certain <br />guidelines, however, that issue can be addressed at <br />another time. <br />Blesener asked if the debt would go against the City's <br />bonding. <br />Ippel replied that the bonds would be considered a debt <br />of the City. <br />Ippel reported that to create an EDA, the City must <br />hold a public hearing. There must be a notice of the <br />public hearing published for two consecutive weeks. <br />The EDA can have 3, 5, or 7 commissioners. If there <br />are 3 commissioners, at least one must be a City <br />Council member. If there are 5 or 7 commissioners, at <br />least 2 must be City Council members. If the City <br />Council wishes to retain total control of the EDA, the <br />entire City Council can be commissioners. <br />Page 2 <br />