08-19-03 Special
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Meeting
August 19, 2003
The meeting was called to order by Mayor Kirsch at 5:30 p.m.
Members Present:
Martin Kirsch, Mayor; Sue Sandahl; and John Enger.
Members
Not Present:
Susan Rosenberg; and Gertrude Ulrich.
Staff Present:
Steven Devich, Acting City Manager; Bruce Palmborg, Community
Development Director; John Stark, Community Development Manager;
Chris Regis, Finance Manager; and Cheryl Krumholz, Recording
Secretary .
M/Sandahl, S/Enger to determine the absence of Council Members Rosenberq and Ulrich
as an excused absence.
Motion carried 3-0.
Item #1
Council Member Sandahl presented Staff Report No. 191 regarding consideration of a
resolution awarding the sale of $4,965,000 Taxable General Obligation Tax Increment Bonds,
Series 2003A, fixing form and specifications, directing their execution and delivery and providing
for payment; Lyndale Gateway West Project, which was tabled from the August 12, 2003 City
Council meeting.
Sid Inman, Ehlers and Associates, Inc., explained Moody's Investors Services, Inc.
upholding the City's Aa3 bond rating on these G. O. Tax Increment Bonds. He reviewed the rating
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August 19, 2003
sheet, including the specific mention in the report that the Best Buy project was a good
development for the City.
Mr. Inman reviewed the bid tabulation and recommended the sale be awarded to Legg
Mason Wood Walker, Inc.
Council Member Enger asked for an explanation of the re-offering yield.
Mr. Inman explained it is basically a hedge against the future market.
M/Sandahl, S/Enger that the followinQ resolution be adopted. that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9372
A RESOLUTION AWARDING THE SALE OF $4,840,000
TAXABLE GENERAL OBLIGATION TEMPORARY
TAX INCREMENT BONDS, SERIES 2003A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
Motion carried 3-0. This resolution appears as Resolution No. 9372 in Resolution Book No.
74.
The City Council expressed their appreciation to Mr. Inman for his work on this matter.
Council Member Enger asked about the status of pre-sales.
Heidi Kurtz, Cornerstone Group representative, stated pre-sales are going well and
demolition of the existing buildings and being a featured home in the September Parade of Homes
will have a positive impact for more sales.
Council Member Enger asked about the retail business in the proposed development.
Ms. Kurtz reviewed the businesses with letters of intent.
Council Member Enger asked about the percentage of pre-sales needed for financing.
Ms. Kurtz explained 35% for retail and 50% for housing are needed. She said housing is
currently at 20%, but the retail percentage is no problem.
Item #2
, '
Mayor Kirsch presented Staff Report No. ,192 regarding consideration of a resolution
authorizing Richfield HRA's Internal Loans for Adval1ce of Public Redevelopment Costs in
Connection with Lyndale Gateway West Tax Increment Financing District.
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August 19, 2003
M/Kirsch, S/Sandahl that the followin9 resoluti?~p~adoPted, that it be spread in the
resolution book and that it be made paft''bf;':these minute's~~';''i'
RESOLUTION NO. 9373
RESOLUTION APPROVING INTERNAL LOANS FOR
ADVANCE OF PUBLIC REDEVELOPMENT COSTS IN CONNECTION WITH
L YNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTRICT
Motion carried 3-0. This resolution appears as Resolution No. 9373 in Resolution Book No.
74.
The meeting was adjourned by unanimous consent at 5:42 p.m.
~/i<~
Cheryl K umhol
Recording Secretary
41)
Date Approved: September 9, 2003
Steven L. Devic
Acting City Manager