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HomeMy WebLinkAboutCRC-08-23-01CARMEL REDEVELOPMENT COMMISSION Meeting, Thursday, August 23, 2001 The meeting was called to order at 6:07 p.m. by President Rick Roesch. Present were Commission members Luci Snyder and Edmund Burke, constituting a quorum. Also present were Sue Beesley and Matt Price from McHale, Cook & Welch, Loren Matthes, from H. J. Umbaugh & Associates, Councilor Wayne Wilson, and Steve Engelking. Sherry Mielke present as support staff. Bond Resolution for Merchants Pointe Matt Price explained the bond resolution: “We’ve got a preliminary bond resolution. This resolution just sets out the parameters for the bond issuance in very general terms. There will be a final bond resolution that we’ll adopt later in September after we’ve had our hearing on the appropriation of these bond proceeds where we will actually finalize the specific terms of the financing, including whether we have a debt service account or not. Or if we do, how much. What the final interest rate will be, the maximum maturity of the bond issue. And a number of other variables that we’re just not to a point yet where we’re able to finalize. This resolution just sets what the outside maximum of interest rate that would be acceptable for this bond issue which is 7%. It authorizes that the maximum amount of the borrowing would be $1,300,000. That is truly a maximum because we don’t anticipate the bond issue will be much greater than $1.170. Part of the reason we wanted to use this preliminary bond resolution is that this will serve as our leaping off point. We have to publish a Notice of Determination to issue bonds which will start a period of time during which a person could remonstrate against a bond issue. There are certain basic provisions that you have to have in that notice. By adopting this preliminary resolution that will allow us to get that notice period running while we finalize the bond terms and prepare the final bond resolution. Or the Commission will have the opportunity to make sure it’s comfortable with the way the final terms are structured. Ms. Beesley (or Ms. Matthes?): Once it’s published we can always reduce them, but we cannot increase them. Mr. Price: Continuing through the paragraphs, it authorizes the acquisition and construction of the projects which are described in general terms in Exhibit A to the resolution. Those are the same projects that were identified in the Declaratory Resolution that we adopted back in March. We will tonight authorize the President of the Commission to select two appraisers to appraise those parts of the project that are going to be acquired, and that’s pursuant to State statute. This resolution will also, after its adoption, authorize the publication of the Notice of Determination to issue bonds that I just described. We’ll coordinate to make sure that takes place as soon as possible after this resolution is considered. If this is adopted, I’d also like to ask the Commission to consider scheduling a meeting where we’ll have our hearing on the appropriation of the bond proceeds sometime in mid September. If we can work it in with an existing meeting that would be great.” It was noted that the next meeting is scheduled for September 12. Mr. Price said that would be perfect. “We should be able to make that work.” It will need to be published as a public hearing. Mr. Price: If that works, I will circulate a time line that’s revised to everybody to see what the “road map” is over the next thirty days. The goal is to close basically at the end of September. Mr. Roesch: John Koven is not an email person, so if you will, distribute everything but copy John. Mr. Price: As far as finalizing the terms for the bond issue, we’re working with McDonald and Company as the underwriter. They are the same underwriter that did the Merchants’ Square transaction. They have been charged with putting together a term sheet for the Commission to review. We had a conference call including Mr. Roesch and Tim Long, the representative of McDonald, was to provide us with a term sheet for us to comment on and respond back to. I’ve followed up with them and we should be getting that tomorrow. Term sheet distributed. ??? Mr. Roesch: I might clarify for everybody why we’re here tonight since it’s not a regularly scheduled meeting. It was an accommodation to the developer. The developer, of course, you can see the project is underway. This work is being funded by the bank. The time line on the closing is September 24 (on the aggressive timeline). The lender is under the gun from the bank because their loan for this is to be taken out the 28th of September.