HomeMy WebLinkAbout1990/03/27 - ADMIN - Minutes - Economic Development Authority - RegularMINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
March 27, 1990
l . Call to order
President Meland called the meeting to order at 5:00 p.m.
2. Ro 11 call
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MICROFILMED
Present were Commissioners Bruce Battaglia, Allen Friedman, Larry Mitchell,
Jane Tschida and Keith Meland.
Also present were the Director of Community Development and City Attorney.
President Meland said the Authority convened that evening to consider a
resolution approving the sale of bonds by the EDA and authorizing an amendment
to the tax increment agreement.
The Director of Economic Development (acting as Executive Director) said
the bond issue as it is now structured would be for the parking of $6 million
in tax exempt bonds. He wanted to emphasize that the Authority needed
to have a reasonable present expectation that the funds will be used for
the public improvements as outlined in staff's report.
Councilmember Friedman asked about the costs for bond counsel, attorney's
fees etc.
The Director said that figure was for parking the bonds for the 6-month
period.
Councilmember Friedman asked how much an extension would cost. Kent Ritchie,
bond counsel for Miller & Schroeder, said that the intent would be for
the bonds to become permanent at the end of the 6-month period or that
the bonding collapse.
A discussion followed as to the $52,600 in various fees being charged.
In answer to a question from Commissioner Battaglia, bond counsel said
three representations had to be satisfied before bonds could be issued
at the end of six months: ( l) all of the proceeds can be spent within three
years from now; (2) a binding contract exists such as a construction contract
within six months in an amount at least equal to $100,000; (3) the Authority
proceed with due diligence to completion of the improvements it is intending
to finance.
In answer to a question from Councilmember Friedman re challenge to the
bonds, bond counsel said this issue would be subordinate to the existing
TIF districts (Oak Park Village and Excelsior Blvd.).
It was moved by Commissioner Mitchell, seconded by Commissioner Tschida,
to adopt Resolution EDA 90-5 entitled "Resolution of the St. Louis Park
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Economic Develo pment Authority
March 27, 1990
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Economic Development Authority approving sale and providing form, terms,
pledge of tax increments and findings, covenants and directions relating
to tax increment revenue bonds, Seri es 1990 of the St. Louis Park Economic
Development Authority; and authorizing execution and delivery of contract
of purchase, escrow agreement and amendment to tax increment pledge agreement
and related documents."
The motion passed 4-1 (Commissioner Friedman opposed).
It was moved by Commissioner Mitchell, seconded·by Commissiner Battaglia
to adjourn the meeting at 5:20 p.m. The motion passed 5-0
President
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