HomeMy WebLinkAbout03/17/1980 Council MinutesMarch 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.
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Special Council Meeting
March 17, 1980
The final plans, application for re -zoning and permits necessary for
construction have been applied for at the City offices.
Mayor Gourley suggested some time limit on the financing in order to
control this matter. He amended the motion to put a one year time
limit on the financing of this project.
Mr. Kulaszewicz asked the reasoning behind this - Mayor Gourley said
he felt the changes that could occur in one year might make it necessary
to take another look at this project. Mayor Gourley moved to add this
to Mr. McLean's motion. Seconded by Mr. McLean. This amendment -passed
unanimously. The Motion carried unanimously.
Mr. Kulaszewicz moved to close the hearing. Seconded by Mr. McLean.
Aye.