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Revitalization Commission <br />Minutes <br />October 13, 2014 <br />Page 2 of 7 <br />a. Update on Core Project Area TIF Bond Interest: <br />Economic Development Director Aaron DeJong gave an overview of the TIF <br />Bond interest discussion from the last meeting. RMCS, the DELO developer is <br />requesting compounding unpaid interest during the duration of the TIF bond <br />instead of accruing at simple interest in accordance with the Term Sheet. <br />Staff has stated the draft bond documents enacted terms that are in the <br />original term sheet. <br />Commissioner Becker asked RMCS how they signed an agreement stating the <br />terms as simple interest yet provided projections that show compounding <br />interest. Justin McClure of RMCS said the spreadsheets assumed <br />compounding of interest in all scenarios but clarifying was whether it was <br />simple or compound was an oversight. He made the typical assumption interest <br />would compound on an annual basis. He assumed the typical bond structure. <br />That is what has been represented to investors. McClure said he takes <br />responsibility for this oversight and apologizes to the LRC. He said this has been <br />a long process and looks forward to this last point of clarification. <br />Draft Policy on Future Regional Detention Payments: <br />Public works staff did estimate on what is needed by each property. Best <br />estimate is that full pond is $675000. DeJong provided a chart showing each <br />property share. Each property can provide their own regional detention if they <br />wish. The City is not going to force properties to join. <br />Justin: need to get rid of fill, $11/cubic yard can be lower. If we can address <br />getting rid of fill, the number will come down dramatically. <br />McClure said DELO needs approval by December 2nd. Chair Becker said the <br />LRC could consider holding another meeting if necessary to review within <br />that timeline. <br />Public Comments <br />Chair Becker asked Rick Brew about the DELO construction schedule. Brew reported <br />that Phase I has broken ground. DELO is waiting for approval of construction <br />documents. Chair Becker asked Brew to provide an update at each future meeting. <br />Reports of the Commission: <br />Business Matters of the Commission — <br />a. Core Project Area TIF Bond Documents: <br />Economic Development Director Aaron DeJong gave a presentation and <br />overview of the documents necessary to issue the bonds in the maximum <br />3 <br />