HomeMy WebLinkAbout07/25/1973 Council Minutes1
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July 23, 1973
to find out just what this charge includes -also, to check on their policy toward
customers there has been many complaints about non - pickups.
Mr. Jaworski moved to pay bills #5231 through #5244, holding #5235. Seconded
by Mr. Cardinal. Motion carried.
Mr. Cardinal had been asked to estimate the cost on damages done by the
Minnesota Pipeline Company, but he said it would be difficult for him since
he is working such long hours. Mr. Jaworski said that the area must be
defined before an estimate can be made. He suggested that Mr. Backlin be here
and talk to the men. There was discussion on the method of installation
with no decision being reached.
Mr. Marier moved to adjourn at 10:25 P.M. Seconded byMr. Jaworski. AYE.
Minutes approved at the meeting of August 13, 1973.z'�,
Clerk- Treasurer
July 25, 1973
A special meeting of the Lino Lakes Village Council was called to order at
8:15 P.M. by Mayor Bohjanen. Councilmen present; Marier, Zelinka. Absent
Cardinal, Jaworski. Mr. Busch representing U.S. Lakes Development, and
Mr. Lcoher was also present.
This meeting had been called to discuss the 1971 $550,000.00 Temporary
Bonds. These bonds are due Nov. 4, 1974. The Clerk reported that as of this
date, there is $139,061.07 plus interest in Certificates of Deposit for the
purpose of paying off these bonds. Also, the Village has $100,000.00 in
Treasury Bi I Is that mature in October.
Mr. Locher read the legal material pertaining to the resolution of se l l i ng
these bonds and the acceptance of the bid. He also read the letter of
certification for the $50,000.00 Certificate of Deposit being held by Drovers
State Bank as a guarantee that all current assessments on the property in Lakes
Addition #2 will be paid when due.
Mr. Jaworski arrived at 8:45 P.M.
Mr. Marier said that he understood that the bonds were issued in 1971 they are
due in 1974 but are considered 7 year bonds. Why were they set up in this
fashion?
Mr. Locher said the bonds were issued in the face of a bad bond market and
it was felt that this was the most practical way to handle these bonds.
Mr. Lcoher read a letter from Mr. Sp ri ngsted recommending that, although these
bonds could be renewed this November, they should be allowed to mature in order
to fully use the conditions under which they were sold. Mr. Locher also read
the minutes of 10 -27 -71 dealing with the sale of these bonds. The minutes of
7 -16 -72 were also read and Mr. Locher had his notes on this meeting.
Mr. Marier asked who was responsible for the payment of these bonds, besides
the Village.
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July 25, 1973
Mr. Locher said that payments come first out of the special assessments and
then it would have to be paid by the Village out of the General Funds. This
would have to be collected by an Ad Valoreum tax. If money was later paid into
this special assessment fund, it would then be transferred into the General
Fund to replace the money spent to pay for the bonds.
Mr. Marier said that on November 4, 1974 the $550,000.00 is due and payable.
He felt that we should discuss how this is to be paid rather than a reissue.
Mr. Locher read the original recommendation from Mr. Springsted setting up the
3 year maturity date, with the balance to be issued for the remaining 4 years.
Mr. Jaworski said the U.S. Lakes is required to pay IZ times the assessment on
all lots developed thus making the collection of the special assessments
ahead of schedule. Mr. Jaworski asked Mr. Busch if he knew what the prediction
for construction in the area was.
Mr. Busch said it iT difficult because they have no knowledge of what the
Open Space is going to do to the area. They cannot advertise because of
the uncertainity of the Open Space Boundaries.
Mr. Zelinka noted that the Open Space Commission had made a proposal reducing
the area proposed by the County. The County had presented a counter - proposal.
These have all been discussed by both our people and the County.
Mr. Marier said the County had stated they would not infringe on any previous
planned projects. He felt that the County could not be held responsible
for the lack of progress that Mr. Jandric was not too interested in carrying
out the development. He felt thtt the County could not afford to buy out the
project.
Mr. Zelinka said that to the best of his knowledge, it was U.S. Lakes who
was doing the pushing and the Village was the one who was dragging their feet.
Mr. Marier asked, in what way?
Mr. Zelinka felt that the Village did not take advantage of opportunites
when presented. We stalled afraid that the Village would be used.
Mr. Marier said that Mr. Jandric is a progressive man he felt that the
problem was one of not being able to sell this project. He felt that the
Village was trying to save the land and the project and this meeting was to
find a way to pay these bonds.
Mr. Jaworski said we would either have to resell or make an attempt to pay
them off. He felt there must be proof that this project is going to progress
these bonds cannot be paid off if only 10 or 20 homes are constructed per year.
Mr. Busch said with some quick calculations of the figures presented, there
should be around $300,000.00 in cash available by May 31, 1974 to be used to
pay on the principal of these bonds. This would leave only $250,000.00 to
be offered for sale. These could be issued for 4 years or maybe only 3 years.
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July 25, 1973
Mr. Marier said there must be a decision as to whether there is an over -lap
in December of 1974. These bonds are due and payable on Nov. 4, 1974 and
before that date we must either pay or issue bonds for resale to cover the
balance.
Mr. Zelinka asked if the interceptor would ease the situation. Mr. Busch
said it would. At the present time, Twin City Federal is not interested
in areas that are not serviced by sewer. The main hold up is how much or
how little the County is going to take in the Open Space Program.
Mr. Zelinka felt that once this decision is made and the boundary lines on
the Open Space is set, then things should be speeded up as to construction
in that area.
There was discussion of the sewer situation being cleared, but Mr. Busch said
that as far as he knew, there had been no action by the Metro Sewer Board
on the installation of the interceptor. Mr. Busch seemed to feel that the
biggest problem to selling the area is the uncertai n i ty of the Open Space
program.
There was more discussion on the retirement of the bonds. Mr. Zelinka said
we should aim at paying off with funds available as much as possible of
present bonds, and prior to 11 -4 -74, work with Mr. Springsted to sell new
bonds to pay the balance.
Mr. Locher said there would be a balance of about $250,000.00 and this was
exactly what had been planned in the original sale. It takes about 6 weeks
to 2 months to float the bonds.
Mr. Marier was concerned that we should realize that we have this bill to
pay and, if the project becomes deficit, the Village is still liable for
payment of these bonds. There is a potential of $300,000.00 being available
this should be paid on the original and the remainder resold. The Council
should make a move before the due date to avoid overlapping these bonds.
There was some question as to the effect the reissue of bonds would have on
the bonding powers of the Vi I lage. Are these kinds of bonds governed by the
bonding limits as other bonds are? Mr. Locher is to check this out.
Mr. Jaworski moved that no later than August ,1, 1974, we start the process
to sell bonds to pay off the $550,000.00, with the stipulation that the
Village not exceed bonding indebtness. Seconded by Mr. Zelinka.
Mr. Marier amended the motion to read "pay off difference between cash on
hand and amount of bonds". Motion carried.
Mr. Marier moved to adjourn at 10:20 P.M. Seconded by Mr. Jaworski. Aye
Clerk- Treasurer
The minutes were approved at the meeting of Aug. 13, 1973.
July 31, 1973
The special meeting of the Lino Lakes V i I l age Council was called to order at
8:15 P.M. on July 31, 1973 by Mayor Bohjanen. Counci Imen present; Jaworski,
Zelinka. Absent; Cardinal, Marier. Mr. Carley and Mr. Gotwald were also present.