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--------.-- ---- ----- . .. ~ '\ Minutes of Special Council Meeting Thursday, November 8, 1984 - 8:00 p.m. Page Two Deans reported that the applicant has submitted the breakdown as to the use of the financing proceeds; noted that it is not the entire amount that will be spent on this project; it is just the way the proceeds will be used; costs will be closer to $500,000 - $525,000 In addition, all City expenses not specified, will be part of that $400,000, including the City Administrative Fee in the amount of $5,000. and ~npaid assessments pending on the facility will have to be ascertained and paid at the time of closing. Proposed financing is over a ten-year term commencing December 15, 1984. Deans reported that the applicant has submitted a projected annual budget and projected beginning balance sheet for the project . for the City's review. Deans said we have received a feasibility letter from Price Consult- ing stating that the project is economically feasible and the revenue bonds can be successfully issued and sold. Deans said it is his understanding that we will be receiving, in the ftext few days, a feasibility letter from a financial institution stating that it would be willing to purchase the bond or note. Deans said, if the project is of the type of construction for which the City wishes to utilize this financing, then he makes the recommendations as specified in his report of 11/8/84: (a) A 1 ega 1 opinion relating to the title of the property should be supplied prior to the time of closing. (b) A personal and corporate guaranty of payment by the applicant and his corporation is recommended. (c) The City Clerk-Administrator and staff should review whether any significant City expenditures will be required for any sewer, utility, street or other improvements and, if so, all of the costs thereof. A determination should be made as to the time frame and method of financing these improvements, including the review of any developer agreements which may be necessary. All connections to existing improvements should be paid for by the applicant as well as any connection or hook-up charges in compliance with City ordinance. Any existing or pending assessments to the property where the project equipment and fixtures are to be installed should also be paid at closing. (d) All costs of the City and its agents, as well as all other attributable costs .of the financing should be paid at the time of closing. The City Administrative fee should also be paid at closing. (e) If a 1% deposit is necessary to retain the City's indust- rial revenue bond authority allocation for this project. the applicant should provide the necessary funds. Deans said if the project receives preliminary approval tonight. a $10,000 refundable deposit will be paid tomorrow; noted that the . applicant has already paid the 1% deposit for this project to go to the State; reported that the City has received notice from the State that his allocation from the competitive pool, in the amount of $400,000 has been approved. If the Preliminary Resolution, before the Council tonight, is approved, the application materials will then be signed by the Mayor and Clerk Administrator and submitted to the Energy and Economic Development Authority for its approval; when the project terms are finalized, the project will be brought back before the Council for its final approval, before the bonds are issued. for consideration of the details of financing. Written or Telephone Comments McNiesh reported that none have been received. \../--