HomeMy WebLinkAboutCity Council - 12/16/1980 - HRA APPROVED MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
TUESDAY, DECEMBER 16, 1980 7:30 PM, CITY HALL
HOUSING & REDEVELOPMENT AUTHORITY MEMBERS: Wolfgang Penzel , Dean Edstrom, Dave
Osterholt, Sidney Pauly -and Paul Redpath
HOUSING & REDEVELOPMENT AUTHORITY STAFF PRESENT:City Manager Roger K. Ulstad, Finance
Director John Frane, and Joyce Provo,
Recording Secretary
INVOCATION: Dave Osterholt
PLEDGE OF ALLEGIANCE
ROLL CALL: Edstrom, Osterholt, Penzel and Redpath present; Pauly absent.
I. CALL MEETING TO ORDER
Chairperson Penzel called the meeting to order at 7:30 PM.
II. MINUTES OF HOUSING & REDEVELOPMENT AUTHORITY MEETING HELD NOVEMBER 18, 1980
MOTION: Edstrom moved, seconded by Osterholt, to approve the Housing & Redevelopment
Authority meeting minutes from meeting held November 18, 1980, as published.
• Motion carried unanimously.
III. RECOMMENDATION TO THE CITY COUNCIL ON THE SALE OF $18,500,000.00 GENERAL
OBLIGATION TAX INCREMENT FINANCING BONDS
City Manager Ulstad explained the Housing & Redevelopment Authority set this
date as the date to receive bids for the sale of $18,500,000.00 General Obligation
Tax Increment Financing Bonds, and pending the receipt of those bids the Housing
& Redevelopment Authority would recommend approval to the Council . Those bids
were to be received this noon, however, the City did not receive any bids.
Bill Fahey, Ehlers & Associates, stated in any offering of this nature the City
makes a pledge that they will provide a certificate of non-litigation, i .e. , that the
City will certify at the time of delivery of the bonds that there is no litigation
pending against the City which would threaten the validity of those bonds. About
a week ago the City was served with litigation which might threaten the litigation
of those bonds. On Friday, December 12th, and on Monday, December 15th, Ehlers
notified the three bidders which had indicated that they were going to bid on the
$18,500,000.00 bonds that in fact there was litigation which has been referred to
the City Attorney, and that the City could not at this time provide any assurance
that we would not have litigation between now and the delivery of the bonds. As
late as 10:00 this morning at least two of those bidders were still discussing
the possibility of submitting a bid even knowing full well that there may be
litigation. . In the end they chose not to. Their reason is simple, we have a
very fast moving market, but under any circumstances if they would propose to
purchase the City's bonds and if the City were to accept the lowest bidder, then
it would be their burden to sell those bonds. If the City could not comply with
a non-litigation certificate the entire sale would be off. In other words, their
salesman would have sold $18,500,000.00 of bonds and then the whole transaction
would have been cancelled. Essentially that is the reason we have no bids tonight.
Fahey recommended that no action be taken by the Council since there-are no bids
before the Council.
HRA_Minutes - 2 - Tues.,December 15, 1980
III, RECOMMENDATION TO THE CITY COUNCIL ON THE SALE OF $18=500,000.00 GENERAL
OBLIGATION TAX INCREMENT FINANCING BONDS continued
MOTION: Osterholt moved, seconded by Redpath, to refer this item for tabling to
the Council for future reconsideration. Motion carried unanimously.
IV. ADJOURN MEETING
MOTION: Redpath moved, seconded by Osterholt, to adjourn the Housing &
Redevelopment Authority meeting at 7:45 PM. Motion carried unanimously.
•