Revitalization Commission Agenda and Packet 2014 10 13

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Revitalization Commission Minutes September 8, 2014 Page 3 of 6 interest. Justin McClure of RMCS said it was an oversight. He made the typical assumption interest would compound on an annual basis. He assumed the typical bond structure. That is what has been represented to investors. McClure said he takes responsibility for this oversight and apologizes to the LRC. He said this has been a long process and looks forward to this last point of clarification. Commissioner Fisher said he looked at the projections and overlooked the word "simple." Commissioner Tofte stated the numbers indicate compounding. He said this is an oversight and he is willing to go with compounding. Chair Becker stated any TIF to pay off this bond has to come from the core project area. He asked City Attorney Sam Light is there a payment that happens half year, can we service debt sooner? Can two payments be made per year? Attorney Light said: December 1 is the date of payment of revenues that are available. Consultant Matloff stated it does not have to be that way. That is how documents are drafted. The money comes in every month. Chair Becker asked if there is a mechanism to make it sooner. Light will check with bond attorney. The Term Sheet is currently structured for single payment each year. DeJong stated we won't know the assessment of properties until June and knowing what will be Pledged Revenues will occur only once a year. Attorney Light said once senior obligations and administrative have been paid, you can pay early. Late summer before you know how much tax revenue you have. Chair Becker said his interpretation of this is that it would be difficult to make payment earlier than what Term Sheet says. Mayor Muckle said if projections are pessimistic, we can pay earlier. Commissioner Lathrop said he believes in numbers that are in Term Sheet and timelines. Danger is if bonds don't get sold and construction delays. Have to stay on schedule to avoid problems. Chair Becker asked for a vote on a motion to direct staff to finalize documents with compounding interest. Commissioner Fisher seconded the motion. All in favor. Draft Policy on Future Regional Detention Payments: Public works staff did estimate on what is needed by each property. Best estimate is that full pond is $675000. DeJong provided a chart showing each 4