Board of Commissioners Special

MINUTES of SPECIAL MEETING of the BOARD of COMMISSIONERS of the CITY of BOWLING GREEN, KENTUCKY held AUGUST 3, 2015 The Board of Commissioners of the City of Bowling Green, Kentucky met in special session in the Commission Chamber of City Hall, Bowling Green, Kentucky at 5:00 p.m. on August 3, 2015. Mayor Bruce Wilkerson called the meeting to order. Assistant City Manager/City Clerk Katie Schaller-Ward called the roll, and the following members were present: Commissioner Joe W. Denning, Commissioner Melinda M. Hill, Commissioner Sue Parrigin, Commissioner Rick Williams and Mayor Bruce Wilkerson. Absent: none. There was a full quorum of the Board of Commissioners. SPECIAL AGENDA ORDINANCE NO. BG2015 – 24 (First Reading) ORDINANCE RELATING TO BUDGET AMENDMENT ORDINANCE APPROVING AMENDMENT NUMBER FIVE TO THE CITY OF BOWLING GREEN, KENTUCKY ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2015 Title and summary of Ordinance No. BG2015 - 24 was read by the Assistant City Manager/City Clerk. Motion was made by Hill and seconded by Williams for first reading of said Ordinance. DeFebbo reviewed the purpose of the budget amendment to manage the revenues and expenses throughout the year. Chief Financial Officer Jeff Meisel confirmed this would be the final budget amendment for FY2015. With no additional discussion, a roll call vote was taken. ROLL CALL: Voting Yea: Denning, Hill, Parrigin, Williams and Wilkerson Voting Nay: None First reading of Ordinance No. BG2015 - 24 was approved by unanimous vote. ORDINANCE NO. BG2015 – 25 (First Reading) ORDINANCE APPROVING INTERLOCAL COOPERATION AGREEMENT WITH WARREN COUNTY AND WARREN COUNTY DOWNTOWN ECONOMIC DEVELOPMENT AUTHORITY, INC. ORDINANCE APPROVING INTERLOCAL COOPERATION AGREEMENT WITH WARREN COUNTY AND WARREN COUNTY DOWNTOWN ECONOMIC DEVELOPMENT AUTHORITY, INC. RELATED TO THE WKU GATEWAY TO DOWNTOWN BOWLING GREEN DEVELOPMENT AREA TAX INCREMENT FINANCING (TIF) DISTRICT Title and summary of Ordinance No. BG2015 - 25 was read by the Assistant City Manager/City Clerk. Motion was made by Hill and seconded by Parrigin for first reading of said *Note: Minutes are a summary of the discussions; a video recording of this entire meeting is maintained by the Office of City Clerk. (Minutes-Board of Commissioners-August 3, 2015) Ordinance. DeFebbo reviewed the establishment of the Chapter 58 Corporation, now known as the Warren County Downtown Economic Development Authority, Inc., and the creation of the downtown TIF district, as well as the development in Block 6. He also reported that with the proposed changes in the interlocal agreement, the Chief Financial Officer and a member of the Board of Commissioners would replace the City’s current membership on the Authority. At the request of the City Manager, City Attorney Gene Harmon provided an overview of the components of the agreement and proposed changes to the Block 6 Wrap and parking garage development, including some of the following points: • Warren County would issue $30 million of Industrial Revenue Bonds (IRB) with a 30-year term which would exceed the life of the existing TIF district; • the City would enter into a General Obligation (GO) Lease Agreement for the parking garage to guarantee any shortfall in debt payment on the IRB; • Warren County would enter into an annually renewable lease with the City to repay any debt payment the City might have to make; • Warren County would own the parking garage once the IRB bonds are paid off; • the City would convey Block 4 to the Authority for a specified amount that included a minimum amount and the baseball stadium would be conveyed to Warren County after the City’s GO bonds are paid; • the City would freeze the TIF base and/or the growth in the COLA for specified blocks and reduce the TIF base to zero for specific blocks; and, • the City would give up its State TIF money as previously discussed. Mr. Harmon also noted if there is any money left once the IRB bonds are paid, the City and County would split the amount 50/50. With all these proposed changes, he also indicated the Revenue Sharing Agreement and other TIF related documents would require amendment in the coming weeks. Attorney Scott Bachert, representing the Authority, concurred with Mr. Harmon’s assessment and responded to questions related to the life of the IRB bonds, taking over the ownership of the garage and stadium in about 30 years, and whether the City would be notified if there was any change with the baseball team or if the ballpark was converted to another use in the future. Mr. DeFebbo reiterated the importance of having the proper indemnification. Mr. Harmon remarked the annually renewable lease to be executed by the County was the strongest language achievable and would impact the County’s bond rating in the future if the County defaulted on that agreement. Chief Financial Officer Jeff Meisel agreed this was the best arrangement the City would be able to get. He also confirmed City TIF revenues would be dedicated toward the Block 6 debt as well. Following a recap of the proposal by Mayor Wilkerson and with no further discussion, a roll call vote was taken. ROLL CALL: Voting Yea: Denning, Hill, Parrigin, Williams and Wilkerson Voting Nay: None First reading of Ordinance No. BG2015 - 25 was approved by unanimous vote. 2 (Minutes-Board of Commissioners-August 3, 2015) CLOSED SESSION Mayor Wilkerson requested a closed session pursuant to KRS 61.810 (1) (b) for the purpose of deliberations on the future acquisition of real property by the City as publicity would likely affect the value of the specific pieces of property to be acquired, and pursuant to KRS 61.810 (1) (c) for discussions of pending litigation on behalf of the City. Motion was made by Hill and seconded by Williams to convene in closed session pursuant to KRS 61.810 (1) (b) and (c). Mayor Wilkerson called for roll call vote. ROLL CALL: Voting Yea: Denning, Hill, Parrigin, Williams and Wilkerson Voting Nay: None Motion to convene in closed session pursuant to KRS 61.810 (1) (b) and (c) was approved by unanimous vote. Following a brief recess to clear the Commission Chamber, the Board of Commissioners met at approximately 5:30 p.m. in closed session. ADJOURNMENT This being a special meeting and with no other business to be discussed by the Board of Commissioners at the conclusion of the closed session, at approximately 6:00 p.m., Mayor Wilkerson declared this meeting adjourned. ADOPTED: ______________________________________________ APPROVED: ______________________________________________ Mayor, Chairman of Board of Commissioners ATTEST: ______________________________________________ City Clerk Minutes prepared by Assistant City Manager/City Clerk Katie Schaller-Ward 3