HomeMy WebLinkAboutCity Council - 01/20/2009 - HRA APPROVED MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
TUESDAY,JANUARY 20, 2009 7:00 PM, CITY CENTER
Council Chamber
8080 Mitchell Road
HOUSING AND REDEVELOPMENT AUTHORITY MEMBERS: Chair Phil Young,
Council Members Brad Aho, Ron Case, Jon Duckstad and Kathy Nelson
CITY STAFF: City Manager Scott Neal, Public Works Director Eugene Dietz, Community
Development Director Janet Jeremiah, City Attorney Ric Rosow, Finance Director Sue Kotchevar
and Recorder Jan Curielli
I. ROLL CALL/CALL THE MEETING TO ORDER
Chair Young called the meeting to order at 7:00 PM in shared session with the Council
meeting. All members were present.
II. COLOR GUARD/PLEDGE OF ALLEGIANCE
Mayor Young thanked Cub Scout Pack 342, sponsored by Immanuel Lutheran Church, for
presenting the colors tonight.
III. APPROVE MINUTES OF THE HRA MEETING HELD DECEMBER 16, 2008
MOTION: Duckstad moved, seconded by Aho, to approve the minutes of the
HRA meeting held on December 16, 2008 as published. Motion carried 4-0-1,
with Case abstaining.
IV. ADOPT HRA RESOLUTION 2009-01 AUTHORIZING ISSUANCE,AWARDING
SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR
PAYMENT OF $3,290,000 LEASE REVENUE REFUNDING BONDS (CITY HALL
AND COMMUNITY CENTER PROJECTS), SERIES 2009A AND AUTHORIZING
EXECUTION OF A LEASE-PURCHASE AGREEMENT
Neal said the bond proceeds will be used to refinance the 2002A bonds which were issued
for the debt owed on the City Center and the second sheet of ice at the community center.
Paul Donna, Northwest Securities, said $3,235,000 of lease revenue refunding bonds were
issued today. These bonds were approved at an AA1 bond rating. They had planned to
refinance the bonds last summer but the market had deteriorated. They continued to
monitor the market and in early January saw interest rates going much lower. The rates
have hit a historically low level for short-term, tax-exempt bonds, so the City Manager and
Finance Director approved moving forward with the bond issue. He said there was a net
savings of a little over$96,000.
Duckstad asked if it would pay to wait longer or would that create some undue risk of
losing this rate. Mr. Donna said he believes if we were to wait we would be exposed to
interest rates going up and the savings might not be realized.
HRA MINUTES
September 2, 2008
Page 2
Aho asked what the final interest rate was. Mr. Donna said the yield on the bonds was
1.58% and we haven't seen rates like that for a long time. He noted it is a relatively short
issue to 2012.
Duckstad asked if we called the HRA meeting to order. Young said he did call the meeting
to order and notice did go out.
MOTION: Nelson moved, seconded by Duckstad, to adopt HRA Resolution 2009-01
authorizing the issuance, awarding sale,prescribing the form and details and providing
for the payment of$3,290,000 lease revenue refunding bonds (City Hall and Community
Center Projects), Series 2009A and authorizing the execution of a lease-purchase
agreement. Motion carried 5-0.
V. ADJOURNMENT
MOTION: Case moved, seconded by Aho, to adjourn the HRA. Motion carried 5-0.
Chair Young adjourned the HRA meeting at 7:09: PM.