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4 6 COUNCIL MEETING MAY 14, 1990 <br />metro area as well as market the area and improve its image. <br />Mr. Strauss explained that this organization is currently <br />publishing a magazine called "Northern Lights ". He outlined <br />the content of the magazine. <br />Mr. Strauss told the Council of some of the organizations <br />accomplishments during the 1989 and 1990 legislation <br />sessions. These issues involved transportation, bridge <br />funding and Tax Increment Financing. <br />The Council thanked Mr. Strauss for updating them regarding <br />this organization. No action was taken on the proposed North <br />Metro Development Association Agreement. <br />Orientation in the Use of Installment Purchase Contracts, <br />Rusty Fifield - Mr. Fifield explained to the Council a cost <br />effective method of building public buildings using an <br />installment purchase plan. He noted that this plan allows <br />the City to sell bonds with interest rates comparable to <br />general obligation bonds. It allows the City to levy taxes <br />for the payment of these bonds outside of the levy limit and <br />they are not subject to debt limits of the City. In <br />addition, the bonds are not subject to a referendum. The <br />biggest concern regarding this method of financing public <br />buildings is that this financing option will no longer be <br />available after July 1, 1990. In addition an Economic <br />Development Authority must be created by the City Council. <br />Mr. Fifield outlined the details of this plan: 1) call for a <br />public hearing on the creation of the Economic Development <br />Authority, 2) authorize the preparation of financing plans <br />for presentation to the City Council on May 29, 1990, and 3) <br />create the Economic Development Authority to issue the bonds <br />on June 11, 1990. <br />Mr. Schumacher explained that he was directed by the Council <br />to look into this type of financing and bring the information <br />to the Council. He noted that there is very little time to <br />complete all the details that must be completed to insure <br />that the City can become involve in this financing program. <br />He explained that this financing tool would be very useful in <br />the event the Council does decide to go forward with building <br />any new municipal buildings. <br />The creation of an Economic Development Authority (EDA) was <br />discussed. The Council was told that they would determine <br />the Board of Commissioners of the EDA. The EDA would have <br />certain powers unto itself and certain other powers that <br />would be subject to Council approval. Council Member Reinert <br />asked how the City Charter would affect the creation of an <br />EDA. Mr. Hawkins explained that there would be no conflict <br />between the EDA and the City Charter. <br />Mr. Miller noted that the Economic Development Committee has <br />PAGE 2 <br />