03-23-2015 EDA Minutes - Laserfiche WebLink

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EDA 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.