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HomeMy WebLinkAboutCity Council - 01/19/1982 - Joint Meeting it UNAPPROVED MINUTES JOINT CITY COUNCIL/DEVELOPMENT COMMISSION TUESDAY, JANUARY 19, 1982 6:30 PM, CITY HALL COUNCIL MEMBERS: Mayor Wolfgang H. Penzel , George Bentley, Dean Edstrom, Paul Redpath and George Tangen DEVELOPMENT COMMISSION MEMBERS: Chairman Tim Pierce, Joe Adams, Bill Behrenbrinker, Kent Barker, Robert Hanson , Donald Opheim, and Roy Terwilliger COUNCIL AND COMMISSION STAFF: City Manager Carl J. Jullie; Finance Director John D. Frane; William Fahey of Ehlers and Associates, Inc. ; William R. McGrann, Richard Graves, and Arlin B. Waelti of O'Connor & Hannan; and Recording Sec- retary Karen Michael ROLL CALL: Bill Behrenbrinker was absent The meeting was, called to order by Mayor Wolfgang H. Penzel . I. APPROVAL OF AGENDA There were no additions to the Agenda. II. REVIEW OF PROPOSAL TO CREATE A RESERVE FUND VEHICLE WITH RESPECT TO INDUSTRIAL DEVELOPMENT REVENUE BONDS William R. McGrann from the O'Connor & Hannan firm gave an overview of the reserve fund vehicle with respect to industrial development revenue bonds. The O' Connor & Hannan firm has been working with several cities on this approach. Dick Graves of O' Connor & Hannan noted this type of fund is similar to that which has been used very successfully by the St. Paul Port Authority. Arlin Waelti , also of O'Connor & Hannan, spoke to the benefits of this tool to the City noting it creates a public/private partnership. What this reserve system will do is: 1) allow development to occur sooner than it normally would; 2) allow a city to manage its development; and 3) allow a city to be competative. The city which has a reserve system of this type will be able to offer IDB's at a lower interest rate -- a city will end up getting a rated industrial revenue bond. This makes it a very viable tool for small companies. Graves noted that Congress would like to limit the "Fortune 1,000" companies from being able to use IRDB's. COUNCIL./DEVELOPMENT COMMISSION -2- January 19, 1982 It Graves further explained the intricacies of the system. Discussion followed on the mechanics of this type of bonding.. MOTION: Redpath moved, seconded by Edstrom, to direct Staff to look into the proposal as outlined by Graves and Waelti . Motion carried unanimously. III. NEW BUSINESS There was none. IV. ADJOURNMENT MOTION: Redpath moved, seconded by Bentley, to adjourn the meeting at 7:28 p.m. Motion carried unanimously.