1985-03-28 - Laserfiche WebLink

Home Browse Search

1 Council Minutes March 28, 1985 ~ il Waelti stated that, having checked on the individuals and the corporation, she found that the developer has done a considerable amount of development and she received assurances that they are what they are perceived to be and would be quite capable. I Jim Casserly, O'Connor & Hannon, distributed a computer printout which reflected some adjustment on the numbers since the March 26th council meeting's printout. Casserly stated the numbers in the Assumption and Indemnification Agreement are valid, and the City saved $19,000 in interest by doing short-term bonds with the bank. He stated several thi ngs have to be assumed: the bank wi 11 conti nue to cooperate as it has in the past, there will be other ex- penses (demolition, etc.), and the Purchase Agreement will not change any more. With those assumptions, the City can rely on the figures and Casserly believed the numbers to be accurate and in line with the policy. Harcus asked if this would be a fifteen-year project and Casserly responded it goes through 1999; had to be done very tightly; it is low enough for the increment to cover 105% of debt service; Statute requires a delinquency rate; $64,784 balance is $61,000 more in 1998 than is necessary to payoff the bonds; it is also assumed there will be no inflation rate and no interest earnings on the reserve; a 1 so assumes tha t there is a wash between any i nteres t the city may pay and any expenses the city might pay in interest. t . ., Sinda asked how many actual years are involved and Casserly responded the increment starts comi ng in in 1987 for 13 increment years and projected it can be pa i din 12 years. Blomquist restated we must go 13 years for the 105%. ... f I I ~ !l i i i ~ Casserly said there was no way it could be squeezed into ten years and evaluation, mil' rates, inflation could bring the figures down; the city's more recent history shows interest earnings and tax reserves. In response to Harcus's inquiry, Winkels noted the IRS estimates a$3 million per year payroll for 120 employees. I Harcus inquired what would happen if Proto Manufacturing changed its mind; Henning responded that they have a Letter of Intent with Proto defining the lease and that the lease would be signed within the next few weeks. Harcus asked what would happen if the lease is not signed; Benke stated the risk would be Henning's and Blomquist noted the risk would be the same as with any project and Henning would have to find a new tenant. ~ 'I ~ ~ ! '" ~ ~ . :; ~ Harcus noted he would be willing to stretch the city's guidelines because we are going with a specific company. S? ~ Page Two