Economic Development Commission

MINUTES ECONOMIC DEVELOPMENT COMMISSION April 21, 2015 PUBLIC MEETING Mr. Eicks asked if this would also be heard by the 4:30 p.m. City Council. Conference Room #1 120 East 8th Street Mrs. Hopper answered yes. Anderson, IN 46016 Mr. Eicks asked if there was any liability on behalf of MEMBERS PRESENT the City or the Commission. David Eicks, Vice President Gracie Suko, Secretary / Treasurer Mr. Winkler stated there was no liability. Dr. David Markle, Member Robin Wagner, Member Ms. Julie Bolling, Krieg DeVault, bond counsel for the City, stated the final resolution will come back before the Commission. This resolution is just the MEMBERS ABSENT inducement proceeding. The Commission is just Bill Nagengast, President agreeing to go forward with negotiations and the idea of passing a bond to finance the refunding of STAFF PRESENT the outstanding bonds. Under State Statute the Ashley Hopper, City Attorney University cannot issue this type of bond, they must Greg Winkler, Director have a city, state, county, or town issue them on Michael Frischkorn, Deputy Director their behalf. The documents are clear as well as the April Phillips, Economic Development Staff resolution that this is not a debt of the City. This is not an obligation of the City. This is a simply a OTHERS PRESENT conduit. It is an obligation between Anderson Julie Bolling, Krieg DeVault LLP University and the purchaser who is going to be First Ken de la Bastide, Herald-Bulletin Merchant’s Bank. If there is a default or failure to pay, it is solely the responsibility of Anderson ROLL CALL AND DECLARATION OF University. They cannot come back to the City and QUORUM ask them to pay it. Once the bond is issued, the Mr. Eicks called the meeting to order at 4:31 p.m. City is basically out of the deal. and declared a quorum with four (4) members in attendance. Mr. Eicks asked if this was a $4,000,000 bond payable over 10 ½ years. MINUTES Dr. Markle moved to approve the February 17, 2015, Ms. Bolling answered yes. minutes as received. Mrs. Suko seconded. Motion passed unanimously; 4 yes, 0 no. Mrs. Hopper stated this will come back to the Commission in the form of public hearing. It will go BUSINESS to the City Council after the public hearing. Resolution #EDC03-15 Inducement Mr. de la Bastide asked if the original bond was a Resolution for a Conduit Bond for Anderson conduit bond. University Ms. Bolling answered yes. She was not involved in Mr. Winkler explained this is another request for a the original 2007 bond, but it appears as if it was a conduit bond. According to Mr. Jason Fenwick, City large bond of approximately $47,000,000. It was Controller, by using the conduit through the City of probably sold on the open market. Now that Anderson, it saves Anderson University about 150 Anderson University can find banks to buy little basis points. The documents protect the City and pieces, they can do it cheaper by refunding portions the Commission from the possibility of a bond of the larger bond with direct placement with a failure. It will be the University’s responsibility to bank. The City is still the conduit for the outstanding pay the bond and the closing costs associated with bonds; however this bond will partially pay off the it. larger one. None of them are the City’s obligation for repayment. Mr. de la Bastide asked if all the projects were completed. Ms. Bolling answered yes. The original bond in 2007 was for a large list of projects. The prior projects are being refinanced. There is no new money involved. Mrs. Suko moved to approve Resolution #EDC03-15. Ms. Wagner seconded. Motion passed 3 yes, 0 no, 1 abstention. Dr. Markle recused himself from the vote as he is associated with Anderson University. MISCELLANEOUS Mrs. Phillips mentioned that an invoice was paid to Indiana Media Group for a legal ad. The balance of the Commission’s fund is $30,006.56. No action is required. ADJOURNMENT Ms. Wagner moved to adjourn. Meeting adjourned at 4:39 p.m. Economic Development Commission (EDC): April 21, 2015 Page 2