City Council Minutes 2004 08 17 - Laserfiche WebLink

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Louisville City Council Meeting August 17, 2004 Page 4 of 8 received from the Federal Home Loan Bank. The Boulder City Council had approved an amendment to ensure that the housing will remain affordable. He noted Thistle is dealing with a single investor. COUNCIL COMMENTS Council member Brown asked if the City of Louisville is the only municipality being asked to assist in this financial proposal. Miripol confirmed Louisville is the only municipality being asked, after which Thistle will ask Boulder County for assistance. Robert Schultz, First Vice President, Kirkpatrick Pettis, representing Thistle Community, referred to the memo from the City's Bond Counsel relative to the City's risk. He stated a conduit issuer is not subject to legal obligations. Council member Brown asked if this would have any adverse affect on the city. Assistant City Manager for Governmental Relations Heather Balser explained municipalities may issue 10 million dollars in bonds on behalf of a borrower under Bank- Qualified Bond authorization. Mayor Sisk requested the name of the single investor. Schultz responded US Bank. Council member Marsella stated she was not familiar with this type of financing, but liked the project. She asked if they would be willing to enter into the agreement recommended by the City's Bond Counsel. Schultz stated there is language in the agreement to protect the City. Mayor Sisk asked why the Thistle Community did not go to the City of Boulder. Mr. Miripol stated the City of Boulder typically has their BQ earmarked for other matters. He explained if the BQ is not used it is not carried over to the next year. Council member Keany stated his understanding that a fee would be paid to the City by the organization borrowing the money. Schultz stated the fee is negotiable. Council member Keany stated there may be a benefit to the City. City Manager Simmons asked for clarification that the money will be used for improvements to the property and asked if the mobile home park land would be used for collateral. Schultz confirmed the money would be used for improvements to the mobile home park and the land would be used for collateral. City Attorney Sam Light explained an ordinance would be required and requested a Council motion to authorize Staff to negotiate and finalize the documents. MOTION: Council member Brown moved that Council direct Staff, the City Attorney and Bond Counsel, to negotiate with Thistle and move the transaction forward. Council 4