03/17/1980 Council Minutes - Laserfiche WebLink

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March 17, 1980 Special Councicl Meeting 64 The special meeting was called to order at 7:36 P.M. All Council members were:: present. Mayor Gourley announced this meeting is for the purpose of holding a public hearing on the petition of Rite -Way Waterproofing. Mr. Schumacher reported this public hearing is the result of a Resolution adopted by the City Council and setting this date for a public hearing.- This notice has been published in the City's official newspaper. Mayor Gourley asked Diane Gibbons to present the financial proposal on this matter. The City would be approving the sale of tax exempt bonds in the sense of revenue tax, not real estate tax. Mayor Gourley asked that the only portion of this operation that is tax exempt is the interest and that is exempted from Federal Revenue Tax. This interest is paid to the persons who purchase the Industrial Revenue Bonds. Mr. Kulaszewicz asked about the Bond market. Ms.Gibbon said these bonds are placed within thefsrianci.alinstution and does not reflect the normal bond -market. Mr. Kulaszewicz noted these bonds should be sold within the next three weeks - this is due to the proposal of putting a 9% limit on these bonds. Mr. McLean asked what Resolution is needed and Mr. Schumacher said a Resolution giving preliminary approval of financing and authorizing proper officals to file the application with the Commissioner of Securities. Mr. McLean moved to adopt this Resolution. Seconded by Mr. Kulaszewicz. Mayor Gourley requested Mr. Schumacher to go through the implications of this Resolution. Mr. Schumacher asked what happens at the final approvalland Ms. Gibbons explained this would be at the closing and, the final dollar figures would be available. Would the Council know what interest rates - Yes, all this information would be available at that time.Does the City have administrative responsibilites after that point in time? Ms. Ms. Gibbons said the City has no further responsi- bilities. Mr. Schumacher asked what happens if the company runs into financial difficulties? Ms. Gibbons said this would be a matter of the company and the City would have no liability whatsoever. Mr. Kulaszewica asked what the time schedule was and Ms. Gibbons said this depends on the approval of the State - she felt 30 days was a reasonable time. Mr.Schumacher asked, if at the final. hearing certain requirements are requested, can this be done? such as some type of extenuating circum- stances? Ms. Gibbons said, yes, if it is reasonable. The preliminary approval authorized the company to proceed with their application. The final approval will probably be within the next 30 days.