2008.08.18 CC Minutes - Laserfiche WebLink

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City Council Meeting of August 18, 2008 Page 5 of 6 Approve Resolution Authorizing Sale of General Obligation TIF Refunding Bonds In 2000, the City of Hugo issued Tax Increment Bonds in the amount of $1,885,000. The bond proceeds were used to finance the acquisition and improvement of property into what has become the Bald Eagle Industrial Park. These bonds were deemed taxable and carried interest rates ranging from 6.8% - 7.6%. However, a call provision was included in the bond documents whereby all bonds maturing in the years 2009 through 2018 are subject to repayment on February 1, 2009. The Finance Department requested a review of the current issue by the City's financial consultants, Springsted, Inc., to determine if these bonds should be refunded by lower interest bonds. City Finance Director Ron Otkin explained that staff has determined that the City could realize a savings of approximately $94,000 by calling the outstanding bonds and replacing them with new bonds. Haas made motion, Grander seconded, to approve RESOLUTION 2008-38 PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,395,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2008A. Upon roll call voting Aye: Granger, Petryk, Haas, Puleo, Miron Voting Nay: None Motion carried. Walker Methodist Forest Bay Lodge Proiect — Briggs & Morgan, Mary Ippel At its August 5, 2008 mid -year budget review meeting, the Council learned from Finance Director Ron Otkin the interest of the City of Forest Lake to utilize the bonding authority of the City of Hugo for the sale of $10 million dollars in conduit financing for the construction of a senior housing complex in the Headwaters development in Forest Lake. Mayor Fran Miron directed staff to place this issue on the August 18, 2008 Economic Development Authority meeting where the EDA discussed the project and recommended approval to the Council. Bond Counsel Mary Ippel from Briggs & Morgan was present along with Forest Lake Community Development Director Doug Borglund and representatives from Walker Methodist. They presented the proposal to the Council for consideration. Mary explained there would be no cost or liability to the City of Hugo, and in turn, the City of Hugo would receive a fee of $25,000 to cover administrative costs. Doug and representative from Walker Methodist explained the project was a 206 unit facility consisting of all levels of senior care. Haas made motion, Granger seconded to schedule the public hearing for September 15, 2008 and approve RESOLUTION 2008-39 CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM AND THE ISSUANCE OF REVENUE NOTES TO FINANCE A SENIOR HOUSING FACILITY PURSUANT TO MINNESOTA LAW, AND AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING (WALKER FOREST BAY LODGE PROJECT). Upon roll call voting Aye: Petryk, Haas, Puleo, Granger, Miron Voting Nay: None Motion Carried. Vacancy on Carnelian -Marine -St. Croix Watershed District City staff has been informed by the Carnelian -Marine -St. Croix Watershed District that Frederick