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<br />City Attorney Hoeft told Council he would have the Developer's Agreement ready for <br />discussion and final approval at the next meeting. <br /> <br />2. Juran & Moody (Pheasant Marsh) <br /> <br />George Illertson of Juran & Moody addressed Council to explain that his company, due <br />to the events of September 11,2001, was left holding a $58 million dollar debt it had <br />financed for a company out east that was put out of business on that day. He noted that it <br />was not necessary for him to resign as financial advisor in order to purchase the bonds for <br />Pheasant Marsh because his company was not in a position to purchase the bonds. He <br />further explained that his company would facilitate the bond purchase for the City. <br /> <br />Mr. Illertson told Council there would be a resolution for approval at the next meeting <br />setting the sale of the bonds. <br /> <br />Council Member Travis asked whether the City would need to switch financial advisors. <br />Mr. Illertson indicated that would not be necessary as his company, if purchased, would <br />still be Juran & Moody, a division of something (to be determined). <br /> <br />Council Member Broussard Vickers clarified that it was the intent of Juran & Moody to <br />buy the bonds and resell them but now there will be a sale facilitated by Juran & Moody. <br />Mr. Illertson confirmed the explanation of Council Member Broussard Vickers. He then <br />noted that the City is not expecting to see the first invoice on the project until mid- <br />November which means there will be time to hold the sale and send it out to the <br />underwriting community for purchase. <br /> <br />Mr. Illertson noted the interest rates the City is looking at for thel O-year financing bond <br />in the approximate amount of$990,000 would be 4.75 to 5%. <br /> <br />Mayor Swedberg asked if the percentage was the same whether Juran & Moody bought <br />the bonds or if they are sold publicly. <br /> <br />Council Member Broussard Vickers indicated the interest rate is determined by the City's <br />ability to pay back the bonds as opposed to Juran & Moody's financial rating. <br /> <br />Mr. Illertson explained that the City is non-rated in the bonding community and <br />suggested that the City should look into becoming rated for any future projects. <br /> <br />Mr. Illertson indicated there was no Resolution setting the sale date and suggested <br />Council could pass, in motion form, a sale date of October 10,2001 and then describe the <br />terms in a Resolution for approval at the next meeting. <br /> <br />Council Member Broussard Vickers indicated that Council could pass a Resolution at the <br />next meeting without jeopardizing the timeline. <br /> <br />Page 3 of 18 <br />