1998.04.13 CC Minutes - Special Council meeting on Bald Eagle Ind Park

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MINUTES FOR THE HUGO CITY COUNCIL MEETING OF APRIL 13.1998 The meeting was called to order by Mayor Fran Miron at 7:3 SPM. PRESENT: Arcand, Barnes, Goiffon, Leroux, Miron City Administrator, Robert Museus City Engineer, Tom Angus City Finance Director, Ron Otkin Water Resource Engineer, Pete Willenbring Ehlers and Associates, Rusty Fifield Trossen and Wright Architects, Pete Villard The meeting was called to provide an in -progress review of the Bald Eagle Industrial Park expansion project and related activity. The City Administrator provided an overview of the goals and objectives established for the Park -expansion project. Peter Villard, the project manager for construction of the City's new Fire Hall, updated the Council on the status of the project, as well as the work being performed by the Fire Hall Building Committee. He stated that the Committee believed that concrete block construction with an exterior insulated and finished system is the most cost-effective construction technique for the facility. He presented the Council with a site plan for the building, as well as a computer-generated drawing of the building's expected appearance. The architect's current estimate for construction costs is between $784,000 and $836,000. The "soft" costs for furnishings, professional services, site preparation, permits, etc., will add approximately 22% to the project cost. Rusty Fifield, Ehlers and Associates, presented his firm's recommendations for financing of both Fenway Boulevard and expansion of the Industrial Park. Ehlers is recommending that the City issue two bonds: a $985,000 GO temporary improvement bonds for the construction of Fenway Boulevard. These would be tax exempt bonds. The second bond series issued would be $1,825,000 taxable GO temporary tax increment bonds for the acquisition of property and improvements in the Industrial Park. These would be taxable bonds and thus carry a higher interest rate than the GO improvement bonds. Mr. Fifield indicated that the expected assessments to be made for the Fenway Boulevard project should be sufficient to cover the debt service requirements for the GO improvement bonds. Repayment of the tax increment bond is subject to the sale of property and generation of tax increment in the Industrial Park. Goiffon made motion, Leroux seconded, to adopt RESOLUTION 1998-12, A RESOLUTION PROVIDING FOR THE SALE OF $985,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1998B AND $1,825,000 TAXABLE GENERAL OBLIGATION TEMPORARY TAX INCREMENT BONDS, SERIES 1998C. VOTING AYE: Arcand, Barnes, Goiffon, Leroux, Miron Motion Carried.