Revitalization Commission Agenda and Packet 2014 06 09

Home Browse Search

Revitalization Commission Minutes May 12, 2014 Page 3 of 4 $4m max in bond proceeds provided by bond purchasers. This money goes into a construction account which will be managed by the Finance Director and audited by the city’s external auditors. Extra money will be provided by DELO and the City for drainage infrastructure The Planned Unit Development (PUD) must be done – it specifies what is in and on the ground: Construction starts Pay requests are generated by the developer and signed off by the Public Works Director and City Manager No call provision is incorporated in the bond language that reflects the Term Sheet The revenue supporting the bonds will come from Tax Increment Financing (TIF) generated from the core area. The investor’s risk is if property values don’t generate sufficient increased taxes in an amount to support the bonds. Chair Becker would like clarification on: What happens if default occurs? Limited amount of time and Urban Renewal Authority ends?: Per Attorney Light: we go in with the assumption that it will be paid. If not paid, the LRC does not want underperforming bond, investors could be asked to renegotiate but the LRC is not obligated to do that. Commissioner Menaker said a regional water solution will take time and the No Call provision can be extended. Percent paid to Counsel Dee Wisor is typically 1% of the bond. A straw poll was taken and all Commissioners were comfortable with DeJong’s presentation and moving forward. DELO is requesting the bond cap be increased to $4.5m. The additional $500,000 would be earmarked for regional detention Chair Becker asked how is the City and LRC protected: Rick Brew responded that there is no assurance that there will be any change to the Term Sheet The city is not obligated to re-open terms, the risk is on the investor and DELO 4