City Council Minutes 2014 07 01 - Laserfiche WebLink

Home Browse Search

City Council Meeting Minutes July 1,2014 Page 19 of 31 Council member Moss stated she would like to have more information including the data the private investors are relying on and on the LRC's due diligence before making a decision. Mayor Pro Tem Dalton stated the Mayor is a member of the LRC. He asked Mayor Muckle if he was confident there is sufficient rigor in the City staff and LRC's due diligence to proceed with the agreement. Mayor Muckle confirmed he was confident. He felt the entire Council should be comfortable making a decision on the agreement. Council member Keany asked Public Works Director Kowar about the rerouting of the drainage line funded by the City, which appears to be a concession for the developer. Public Works Director Kowar stated the budgeted $750,000 is for a separate drainage line proposed in the overall Drainage Master Plan and is not associated with the realignment for the development. Council member Lipton pointed out George K. Baum & Company will be reviewing the financial information and the assumptions. They have the responsibility for determining whether the bonds are tax exempt and whether the principal amounts can be repaid for the duration of the urban renewal district. He noted this will provide another set of eyes on financials. He felt the investors who buy these bonds do their own due diligence. He felt the City must be fair and honest with the information provided, but the investor will determine the risk of buying these bonds and the type of return they will receive. He was not sure how much financial analysis needed to be done. He was reluctant to turn City Council into financial analysts. He felt the LRC is looking at this in a more detailed way and making a very strong recommendation of approval on the agreement. Council is being asked to increase the term sheet by $500,000 and the specificity for the projects. He did not feel the Council, as a policy board, needed to go into the financial. He was supportive of the agreement. Council member Stolzmann felt she had a responsibility to review all the information. She did not feel it was unreasonable to ask for the information, which has already been prepared. She felt if Council just agrees with every proposal there is no point in having a City Council. She stressed it is still public money and there is a responsibility to review the information. She stated Council is being asked to approve four items: Increase the bond cap; approve the cooperation agreement for the City Manager's service; the drainage line and the public infrastructure improvement. Economic Development Director DeJong explained Council is asked for their concurrence on the Core Project Area Agreement, which governs the scope of what projects are eligible for reimbursement. Council member Stolzmann asked if the public plaza (mews) are included as a public improvement. Economic Development Director DeJong responded no. Council member Stolzmann stated her understanding in the North End project they did their own regional detention without any TIF reimbursement. She asked if any other