HomeMy WebLinkAbout03-23-2015 EDA MinutesEDA MINUTES March 23, 2015
APPROVED
1
DATE : March 23, 2015
TIME STARTED : 6:10 p.m.
TIME ENDED : 6:25 p.m.
MEMBERS PRESENT : Commissioners Kusterman, Reinert, Rafferty,
Stoesz and Roeser
MEMBERS ABSENT : none
OTHERS PRESENT: : Administrator Jeff Karlson; Community
Development Director Michael Grochala;
Finance Director Al Rolek; City Clerk Julie
Bartell
The meeting was called to order at 6:10 p.m. by President Roeser.
CONSIDERATION OF THE MINUTES OF JANUARY 12, 2015
Economic Development Authority (EDA) Member Rafferty moved to approve the January 12,
2015 minutes. EDA Member Reinert seconded the motion. Motion carried on a voice vote.
CONSIDERATION OF RESOLUTION NO. 15-01, PROVIDING FOR ISSUANCE AND
SALE OF LEASE REVENUE BONDS, SERIES 2015A, IN THE MAXIMUM
AGGREGATE AMOUNT OF $4,885,000 SUBJECT TO CERTAIN PARAMETERS
Finance Director Rolek reviewed his written report. The city is proposing to develop a second
fire station in the city and has developed and received a proposal to construct that facility. The
city’s fiscal advisor is recommending the issuance of lease revenue bonds through the EDA to
finance the cost of facility construction. He introduced Terri Heaton, of Springsted, Inc, to
explain the bonding process. It was noted that the amount of bonding was reduced based on
discussions just previous to the meeting.
Ms. Heaton reviewed a PowerPoint presentation (on file) and outlined:
- What are lease revenue bonds;
- The city’s EDA can issue this type of bonds and therefore the lease will be a government-
to government situation;
- The bonds would have a twenty year term;
- The amount of the bonding has been reduced by the council to $4,885,000;
- A competitive sale of the bonds is recommended;
- The award of the bonds will be handled by a pricing committee;
- The maximum interest rate is five percent;
Ms. Heaton remarked that the market is in a good place at this time; interest rates are very
reasonable.
Mayor Reinert noted that while the EDA is authorizing a bond amount of $4,885,000, that
amount includes some extras that won’t be spent such as contingency. The actual project cost is
$4.2 million.
EDA MINUTES March 23, 2015
APPROVED
2
Council Member Roeser concurred; the amount being approved is conservative to allow for
contingencies. He asked if there is any reason not to bundle the bonds with others being
considered this evening. Ms. Heaton explained that these EDA bonds couldn’t be bundled with
general obligation bonds of the city.
EDA member Reinert moved to approve EDA Resolution No. 15-01. EDA Member Kusterman
seconded the motion. Motion carried on a voice vote.
ADJOURNMENT
There being no further business, EDA Member Stoesz moved to adjourn. EDA Member
Kusterman seconded the motion. Motion carried on a voice vote.
The meeting was adjourned at 6:25 p.m.