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EDA MINUTES March 23, 2015 <br />DRAFT <br />DATE : March 23, 2015 <br />TIME STARTED : 6:10 p.m. <br />TIME ENDED : 6:25 p.m. <br />MEMBERS PRESENT : Commissioners Kusterman, Reinert, Rafferty, <br />Stoesz and Roeser <br />MEMBERS ABSENT : none <br />OTHERS PRESENT: : Administrator Jeff Karlson; Community <br />Development Director Michael Grochala; <br />Finance Director Al Rolek; City Clerk Julie <br />Bartell <br /> <br />The meeting was called to order at 6:10 p.m. by President Roeser. <br /> <br />CONSIDERATION OF THE MINUTES OF JANUARY 12, 2015 <br /> <br />Economic Development Authority (EDA) Member Rafferty moved to approve the January 12, <br />2015 minutes. EDA Member Reinert seconded the motion. Motion carried on a voice vote. <br /> <br />CONSIDERATION OF RESOLUTION NO. 15-01, PROVIDING FOR ISSUANCE AND <br />SALE OF LEASE REVENUE BONDS, SERIES 2015A, IN THE MAXIMUM <br />AGGREGATE AMOUNT OF $4,885,000 SUBJECT TO CERTAIN PARAMETERS <br /> <br />Finance Director Rolek reviewed his written report. The city is proposing to develop a second <br />fire station in the city and has developed and received a proposal to construct that facility. The <br />city’s fiscal advisor is recommending the issuance of lease revenue bonds through the EDA to <br />finance the cost of facility construction. He introduced Terri Heaton, of Springsted, Inc, to <br />explain the bonding process. It was noted that the amount of bonding was reduced based on <br />discussions just previous to the meeting. <br /> <br />Ms. Heaton reviewed a PowerPoint presentation (on file) and outlined: <br />- What are lease revenue bonds; <br />- The city’s EDA can issue this type of bonds and therefore the lease will be a government- <br />to government situation; <br />- The bonds would have a twenty year term; <br />- The amount of the bonding has been reduced by the council to $4,885,000; <br />- A competitive sale of the bonds is recommended; <br />- The award of the bonds will be handled by a pricing committee; <br />- The maximum interest rate is five percent; <br /> <br />Ms. Heaton remarked that the market is in a good place at this time; interest rates are very <br />reasonable. <br /> <br />Mayor Reinert noted that while the EDA is authorizing a bond amount of $4,885,000, that <br />amount includes some extras that won’t be spent such as contingency. The actual project cost is <br />$4.2 million. <br /> <br />1