HomeMy WebLinkAboutHRA MINUTES 05132003A
1 CITY OF ST. ANTHONY
2
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
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5 May 13, 2003
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7 CALL TO ORDER.
8 Chair Hodson called the meeting to order at 10:42 p.m.
9
10 ROLL CALL.
11 Commissioners present: Chair Hodson; Commissioners Sparks, Thuesen, Horst, and Faust.
12 Commissioners absent: None.
13 Also present: Executive Director Michael Morrison and City Attorney Jerome
14 Gilligan.
15
16
17 1. APPROVAL OF MAY 13, 2003 H.R.A. AGENDA.
18 Motion by Faust to approve the May 13, 2003 Housing and Redevelopment Authority Agenda as
19 presented.
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21 Motion carried unanimously.
22
23 if. CONSENT AGENDA.
24 Motion by Sparks to approve the Consent Agenda, which consisted of:
6 A. H.R.A. Meeting. Minutes of April 22. 2003: and
27 B. Claims.
28
29 Motion carried unanimously.
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31 III. GENERAL POLICY BUSINESS OF THE H.R.A.
32 A. H.R.A. Resolution 03-007. re: Lease Purchase Revenue Bonds for the Public Facilities
33 Upgrade.
34 Jim Prosser, Ehlers & Associates, explained that he was present to review information regarding
35 financing the public work facilities and fire station with the Board. He noted one option
36 discussed were leased revenue bonds. Mr. Prosser stated the HRA would then finance and lease
37 the facilities to the City. He indicated this was a common form of financing for this type of
38 public facility, but not the only option.
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40 Mr. Prosser explained current legislation was calling for this type of bonding to cease after the
41 end of May 2003. He noted if he was authorized to solicit bids for these bonds, he would bring
42 information back to the HRA on Wednesday, May 28, 2003.
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44 Mr. Prosser indicated the 20 -year bonds are at a 25+ -year low interest rate. He described that the
45 lease revenue bonds are not general obligations of the City, but that they are obligations of the
46 HRA. Mr. Prosser indicated, however, if the bonds were not repaid, the credit rating of the City
would be hurt. He suggested bond insurance be purchased by the City for these bonds. Mr.
do Prosser suggested a debt service reserve be established or have a surety bond in place.
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Housing and Redevelopment Authority Meeting Minutes
May 13, 2003
• Page 2
1 Mr. Prosser stated the resolution for discussion tonight would allow Ehlers to go out for bid on
2 the lease revenue bonds for the public works facilities and fire station.
3
4 Commissioner Faust asked if an amount was needed for this resolution. Mr. Prosser stated this
5 was the case.
6
7 Motion by Faust to adopt H.R.A. Resolution 03-007, re: Lease Purchase Revenue Bonds for the
8 Public Facilities Upgrade in the amount of $5,529,000 and to have a report from Ehlers &
9 Associates on May 28, 2003.
10
11 Discussion:
12 Commissioner Sparks asked if the costs were reduced if the amount could be paid down from the
13 sale of the fire station. Mr. Gilligan stated this could be paid down to reduce the resident's
14 expense over the 20 years. Mr. Prosser indicated it would be as if the Council expended less. He
15 noted the HRA would not be able to expend more than needed as required through these bonds.
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17 Chair Hodson noted after hearing discussions tonight from the public, he is more inclined to go
18 towards the task forces recommendation of the $6.2 million with the 4'h bay and additional
19 community space at the fire station; and the additional storage space at the public works
20 building. He noted he does not want to see corners cut with these facilities but appreciates the
need to keep costs down. Chair Hodson noted this decision has been delayed for 20 years and
if needs action. He stated the $5.5 million is less than the $6.2 million and indicated he hopes the
23 costs come in less than predicted by the task force. Chair Hodson indicated he would overlook
24 this whole project to keep costs low for the residents.
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26 Commissioner Horst noted there maybe other funding options available as previously explained
27 by Mr. Mornson. Mr. Morrison stated there could be some monies available from the water
28 filtration bids and stated the Kenzie Development would positively affect the tax base for all
29 residents.
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31 Commissioner Faust stated if there was sentiment for $6.2 million he would agree to an
32 amendment to his motion. Commissioner Horst stated he felt the $5.5 was adequate for this
33 time.
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35 Mr. Prosser pointed out that bonds can only be issued in $5,000 increments, which would need
36 to be stated within the motion.
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38 A friendly amendment was made to the motion by Commissioner Horst to have the bonding
39 amount be $5,530,000.
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41 Motion carried unanimously.
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0 1V. STAFF REPORTS.
45 None.
Housing and Redevelopment Authority Meeting Minutes
•May 13, 2003
Page 3
V. H.R.A. COMMISSIONER COMMENTS.
None.
VI. INFORMATION AND ANNOUNCEMENTS.
None.
VII. ADJOURNMENT.
Motion by Thuesen to adjourn the meeting at 10:58 p.m.
Respectfully submitted,
Heidi Guenther
TimeSaver Off Site Secretarial, Inc.
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0
Motion carried unanimously.