HomeMy WebLinkAboutAugust 5, 1997
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CITY of ANDOVER
.\ 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 · (612) 755-5100
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
AUGUST 5, 1997 - MINUTES
A Meeting of the Andover Economic Development Authority was called to
order by Mayor Jack McKelvey on August 1, 1997, 7:10 p. m. , at the
Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota.
Present: Councilmembers Kunza, Orttel
Absent: Councilmembers Dehn, Knight
Also present: City Attorney, William G. Hawkins
City Engineer, Scott Erickson
City Finance Director, Jean McGann
City Administrator, Richard Fursman
Others
AUTHORIZE EXECUTION AND DELIVERY OF GROUND LEASE
Ms. McGann asked the Authority to authorize the execution and delivery
of a Ground Lease Agreement to lease the new Public Works Building with
an option to purchase. This is a part of the process of issuing revenue
bonds for the Public Works facilities.
CJ MOTION by Kunza, Seconded by Orttel, to authorize the Ground Lease
Agreement. (See Resolution EDA 003-97) Motion carried on a 3-Yes, 2-
Absent (Dehn, Knight) vote.
AWARD SALE OF BONDS/PUBLIC WORKS BUILDING
Tom Truzinski, Juran & Moody, explained the City is negotiating a sale
of $2,350,000 Public Works rèvenue bond with his company. He reviewed
the cash flow options of financing the project for either 10 or 20
years. The interest rates are based on a sale going on today for the
City of Apple Valley, Minnesota. They are not able to make these bonds
bank qualified because the City has issued over $10 million in bonds
this year. The 20-year analysis spreads payments from the years 1998 to
2016, taking into account the increased valuation of the community and
the influence of inflation. The payments would range from about
$161,000 to $275,000. The 10-year analysis spreads payments from the
years 1998 to 2007, with payments starting at about $268,000 the first
year, ending at about $350,000 the last year.
Mr. Fursman stated Staff is recommending the 20-year bond issue with a
call date to allow the option of paying it off early if the resources
are available. He felt the 10-year issue would be a strain to the
City's finances.
C) Mr. Truzinski explained the call provision without a prepayment penalty
on the 20-year issue would be December 1, 2004. Councilmember Orttel
asked if there would be a conflict between Juran & Moody's role of
consultant for the City and underwriting this bond.
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Regular EDA Meeting
Minutes - August 5, 1997
Page 2
(Award Sale of Bond/Public Works Building, Con tinued)
Mr. Truzinski explained they represent the City on a project-by-project
basis with no contract. The last transaction was completed and closed;
therefore, they are free to act as the underwriter in this project
unless the Authority chooses to put it out for public sale instead.
MOTION by Orttel, Seconded by Kunza, introducing the Revenue Bond
Resolution for $2,350,000, Public Project Revenue Bonds of 1997, City of
Andover, Lease Purchase Project, Economic Development Authority of the
City of Andover, as prepared. Bond term to be 20 years. (See
Resolution EDA 004-97) Motion carried on a 3-Yes, 2-Absent (Dehn,
Knight) vote.
MOTION by Kunza, Seconded by Orttel, to close the EDA meeting. Motion
carried on a 3-Yes, 2-Absent (Dehn, Knight) vote.
The meeting was closed at 7:25 p.m.
Respectfully submitted,
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Ma~cella A. Peach
Recording Secretary