12-16-1981 Speciali
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.~ CITY OF RICHFIELD
SPECIAL CITY COUNCIL MEETING
a ~ December 16, 1981
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. The City Council of the City of Richfield met in special session .on Wednesday,
q December 16, 1981 at 5:30 p.m.
The meeting was called to order by Mayor Donald Priebe at 5:37 p.m.
Present: Bunce, Collins, Hassenstab, Ludeman, Priebe
City Manager Nollenberger indicated that the purpose of the meeting was to
award bids received for the Redevelopment Bonds of 1981. He indicated that no
~' bids were received by the 11:30 a.m. December 16, 1981 bid opening. Administrative
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Services Director Wilde explained some of the reasons why no bids were received.
. She indicated that the state law limiting us to a 12 percent interest rate is the
major reason why bids were not received and that although two syndicates had pledged
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a bid security on December 15, indicating their interest in bidding at that time,
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that by December 16, they felt they could no longer bid at rates lower than 12
percent. She further described the fluidity of the bond market including great
uncertainty of changes in the past three weeks when the bond buyers' index had
really dropped and has suddenly begun increasing. Finally, the very long term
nature of the 20 year bond issue, set up in accordance with HRA policy that each
component of the redevelopment project support itself, has made marketability of
the bonds more difficult. She described three alternatives the city has in
seeking to market the bonds, including a negotiated sale, and readvertisement
for competitive bids.
Mr. Tom Peterson and Mr. Wayne Burggraaff, representing Evensen-Dodge, Inc.,
the city's financial consultants, elaborated on these alternatives and described
the process that would be used in seeking to negotiate a sale.
City Manager Nollenberger submitted a resolution to the council which would
authorize the staff and financial consultant to seek a negotiated sale of the bonds.
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Special Council Meeting Minutes -2-
December 16, 1981
Motion by Ludeman, seconded by Bunce that the following resolution be adopted
that it be spread in the resolution book-and that it be made a part of these minute
RESOLUTION N0. 6545
RESOLUTION REL4TING TO $2,450,000
GENERAL OBLIGATION REDEVELOPMENT BONDS OF 1981;
AUTHORIZING THEIR NEGOTIATION AND SALE
Poll of votes: Ayes - Bunce, Collins, Hassenstab, Ludeman, Priebe. Nays - None.
Carried. This resolution appears as Resolution No. 6545 in Resolution Book No. 47.
Lawrence Wozniczka, b744 Wentworth, asked questions regarding the need for
selling a bond issue of this size and length.
Motion by Ludeman, seconded by Collins to adjourn the meeting.
All ayes - Carried. Time: 6:28 p.m.
Date Approved: December 28, 1981 _~
yce Wilde Acting City Clerk ~~
Karl Nollenberger City Manager