Revitalization Commission Agenda and Packet 2014 09 08

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Revitalization Commission Minutes August 11, 2014 Page 4 of 6 having the Assessor paying attention to book valuation. Rick Brew would like to check with experienced bond counsel regarding capitalization. Chair Becker said to keep in mind the risk premium is 7 %. There was a question of when property tax revenues received. Attorney Light said the payment date under the bond documents is once a year and he will check with Finance Director Kevin Watson to see if the LRC collects once per year or other schedule. Commissioner Menaker is troubled by compounding. He thinks 7% tax exempt is a good return. Attorney Light reiterated that the term sheet says 7 %, simple interest. Chair Becker asked the LRC if anyone had any objection to simple interest. There were no objections. 4. US Bank is the paying agent. 5. There will be checks and balances: Public Works Director, Economic Development Director, City Manager, Finance Director will review pay requests. The developer will certify the requests represent actually incurred, qualifying costs and costs must be certified by the project engineer. This will be spelled out in the closing documents. The bond documents will go to City Council on September 2, 2014 and per the City -LRC cooperation agreement it will need to determine by resolution "that the City's interests in connection with such bonds are adequately protected." LRC will review and see that the bond documents are prepared in accordance with the Term Sheet and approve in September. b. Discussion on funding the remaining costs for Regional Detention: On July 1, 2014, the LRC said they are willing to fund part of the Regional Detention. The 2014 LRC budget has an existing fund balance of approximately $150,000 uncommitted. DeJong believes the LRC will have enough funds for the remaining cost of the detention pond in 2015. The additional funds may go into the construction fund. Projected date for completion is when Phase 2 is completed. The funds wouldn't be put in until they are needed. DeJong asked if the LRC is willing to commit fund for regional detention. Chair Becker asked what would happen if LRC did not commit $325,000. DeJong responded the regional detention pond is not a requirement for development, but an improvement to achieve the desired development within the Core Area. If regional detention is not constructed, the property owners within the Core Area would be required to provide their required detention on their properties.