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HomeMy WebLinkAbout05-26-1998 EDA MinutesCITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES DATE: May 26, 1998 MEMBERS PRESENT: K. Sullivan, C. Lyden, J. Bergeson, A. Neal, C. Dahl MEMBERS ABSENT: None OTHERS PRESENT: B. Wessel, R. Batty, M. Divine, J. Shannon, D. Pecchia CONSIDERATION OF MINUTES EDA Member Bergeson moved to approve the minutes of March 9, 1998. EDA Member Neal seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 98-01 PROVIDING FOR THE ISSUANCE AND SALE OF $5,350,000 LEASE REVENUE BONDS Mr. Wessel explained to the board that the 20-year Lease Revenue Bonds were to assist in the financing of the construction of the public facilities complex. Revenues from the lease of the Early Childhood Center to the school district at $1.2 million for 10 years will be used to pay that portion of the bond. Mr. Batty explained these bonds were not general obligation bonds of either the EDA or the city, but "conduit financing" at no risk to the EDA. EDA President Sullivan asked if the bond takes into account the interest on the $1.2 million for the early childhood center. Mr. Batty responded it did, but the city's lease payments are what pays the bonds and that the school district has no obligation regarding the bonds. They do have a contractual agreement with the lease. EDA Member Neal moved to approve Resolution No. 98-01. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF SUBORDINATION AGREEMENT TO THE CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND NOL-TEC LLC Mr. Batty explained that this agreement was requested by the bank for the refinancing of Nol-Tec to expand. This is a typical request and the EDA is generally willing to accommodate to a degree. The assessment agreement will not be subordinated, and the city can relevy unpaid special assessments in the case of default. The principal risk in a subordination agreement is during construction. Since the TIF is a pay-as-you-go on the expansion, so the EDA loses nothing if the expansion is not built. EDA Member Bergeson moved to approve the subordination agreement. EDA member Lyden seconded the motion. Motion passed unanimously. CONSIDERATION OF EDA MEETING ON JUNE 8 Mr. Wessel suggested an EDA meeting at 6 p.m. on Monday, June 8 to review the city's tax increment financing policies. Mr. Batty will be here to answer questions. Board members agreed to the meeting. ADJOURNMENT EDA Member Neal moved to adjourn. EDA Member Dahl seconded the motion. Meeting adjourned at 6:16 p.m.