City Council

Minutes of Special Meeting of Redevelopment Agency of Ogden City, Utah, January 5, 2016 Page Minutes of the Special Meeting of the Ogden City Redevelopment Agency held on Tuesday, January 5, 2016 at 6:00 p.m., in the Council Chambers on the third floor of the Municipal Building, 2549 Washington Boulevard, Ogden City, Weber County, Utah. Present: Chair Richard A. Hyer Vice Chair Marcia L. White Board members Bart E. Blair Neil K. Garner Luis Lopez Ben Nadolski Doug Stephens Board Administrator Bill Cook Board Deputy Administrator Janene Eller-Smith Board Policy Analyst Glenn Symes Communications Manager Amy Sue Mabey Also present: Executive Director Michael Caldwell Chief Administrative Officer Mark Johnson Community and Economic Development Director Tom Christopulos Community Development Manager Ward Ogden Management Services Director David G. Buxton Comptroller Lisa Stout Deputy Finance Manager Camille Cook City Treasurer Brandee Johnson City Recorder Tracy Hansen Deputy City Recorder Abbie Zampedri At the request of the Chair, all present stood and recited the Pledge of Allegiance led by Vice Chair White. A moment of silence was observed. Approval of Minutes Board member Garner stated he had reviewed the minutes of the Regular Meeting of October 13, 2015 and found them to be accurate to the best of his recollection. Board member Stephens stated he had reviewed the minutes of the Joint Study Session of November 10, 2015 and found them to be accurate to the best of his recollection. BOARD MEMBER STEPHENS THEN MOVED TO APPROVE THE MINUTES AS PRESENTED. MOTION WAS SECONDED BY BOARD MEMBER GARNER, ALL VOTING AYE. Proposed Resolution 2015-24 amending the budget for the Fiscal Year July 1, 2015 to June 30, 2016 by increasing the anticipated revenues and transfers for a gross increase of $340,000, and approving an Inter-Agency Loan Agreement with Ogden City to facilitate a property purchase at 550 24th Street and development at 24th Street and Monroe Boulevard A memo from the City Comptroller came before the Board to consider a resolution authorizing an inter-agency loan agreement. The memo stated City Administration is proposing an amendment to the Fiscal Year (FY) 2016 budget which will transfer $340,000 from City Home Exterior Loan Program (HELP) funds to the Redevelopment Agency (RDA) Housing fund. The budget amendment also authorizes an inter-agency loan agreement with Ogden City for the $340,000. The transfer of funds will facilitate the purchase of property at 550 24th Street and development at 24th Street and Monroe Boulevard. This interim funding is necessary while the Community and Economic Development staff works to identify other long term financing options for the 24th Street and Monroe Boulevard property. The RDA Housing funds originally identified for the 550 24th Street purchase were needed temporarily to meet the closing deadlines for 24 th Street and Monroe Boulevard. Funds from the loan will replenish the RDA Housing Fund and allow the closing on 550 24th Street to close as scheduled. Comptroller Stout summarized the memo and stated the RDA Board approved the purchase of property at 24th Street and Monroe Boulevard on November 17, 2015. RDA Housing Funds in the amount of $389,000 are being used for this property purchase, with the intent to reimburse the RDA Housing Funds. The RDA Housing Funds will be reimbursed by securing debt against the 24th Street and property. The RDA will continue securing the financing on 24th Street and Monroe, to further redevelopment work and to repay the RDA Housing Funds of $389,000, as outlined in the November 17, 2015 sources and uses provided to the RDA Board for the RDA Village Center Project. During the process of securing financing, an additional $65,000 is necessary for demolition expenses at 24th Street and Monroe Boulevard and an additional $275,000 is necessary for the acquisition of property at 550 24th Street. The City Housing Fund loan of $340,000 will cover any gap between contract deadlines and the RDA securing additional financing on 24th Street and Monroe. She concluded the fiscal impact of this action is an increase in the RDA budget by $340,000 and approval of a debt the RDA is obligated to pay back to the City by July 31, 2016. The loan may be drawn down as the RDA needs the loan proceeds. An interest rate will be charged on any principal drawn down at the rate the City would earn in the Public Treasurers Investment Fund, which is currently .65% annually. Chair Hyer called for a public hearing on proposed Resolution 2015-24, entitled: “A resolution of the Ogden City Redevelopment Agency amending the budget for the Fiscal Year July 1, 2015 to June 30, 2016 by increasing the anticipated revenues and transfers for a gross increase of $340,000 from sources as detailed in the body of this resolution; increasing the appropriations for a gross increase of $340,000; and approving a loan agreement with Ogden City as detailed in the body of this resolution.” The Deputy City Recorder presented written notice of said hearing and affidavit of the publication in the Standard Examiner on the 20th day of December, 2015 specifying the time and place of this meeting as the time and place when and where the proposed resolution would be given a public hearing and be considered for final passage. The proof of publication was accepted and filed. The proposed resolution was read by long title and all persons interested were given full and fair opportunity to be heard. There being no persons appearing to be heard, BOARD MEMBER GARNER MOVED THE PUBLIC HEARING BE CLOSED. THE MOTION WAS SECONDED BY BOARD MEMBER BLAIR, ALL VOTING AYE. BOARD MEMBER GARNER MOVED THE RESOLUTION BE ADOPTED, AND THE CHAIR BE AUTHORIZED TO SIGN THE SAME. MOTION WAS SECONDED BY COUNCIL MEMBER BLAIR, WITH THE FOLLOWING ROLL CALL VOTE: VOTING AYE – BOARD MEMBERS BLAIR, GARNER, LOPEZ, NADOLSKI, STEPHENS, VICE CHAIR WHITE, AND CHAIR HYER. VOTING NO – NONE. Proposed Resolution 2016-1 authorizing the issuance and sale of not more than $30,000,000 aggregate principal amount of revenue refunding bonds and establishing other pertinent parameters of issuance A memo from Board staff came before the Board regarding a resolution authorizing the refinance of Series 2009 and 2011 tax increment bonds. The memo stated City Administration is proposing that the 2009A, B-1 and B-2 Bonds and the 2011 Bonds be refinanced. The expiration of the swap agreements on the Series 2009 Bonds provides an opportunity to move from the variable interest rates to a fixed rate. Wells Fargo has also given notice that it intends to exercise its option on the 2011 bonds. Therefore, refunding of the 2011 bonds must occur by February 16, 2016. The City’s financial advisors indicate that the current market interest rates are favorable. Chief Administrative Officer Johnson summarized the memo and introduced the City’s Financial Advisor, Laura Lewis, and indicated she is present this evening to answer any questions about this proposed action. Ms. Lewis indicated the proposed resolution sets forth the parameters under which the bonds can be issued; this will refund outstanding Series 2009 and Series 2011 tax increment bonds. Some of the bonds are taxable while others are tax exempt and she and her staff have investigated the option of converting more of the bonds to tax exempt bonds via this action. She added the resolution also sets forth the maximum amount of bonds that can be issued and she typically tries to stay far enough under the cap in order to provide the City with as much flexibility as possible. She is currently expecting the issuance size will be between $23 and $24 million, which is well under the $30 million maximum. She added the resolution also sets forth the maximum interest rate and term for the bonds. The resolution calls for the creation of a pricing committee for the City and she usually prefers finance staff participate on the committee. Board member Stephens inquired as to the current climate of the bond market. Ms. Lewis responded the stock market has been unstable lately and it is her opinion that is due to reaction to the recent condition of the Chinese stock market. From an interest rate perspective, short term rates have increased, but long term rates have not risen significantly. She anticipates issuing the bonds at very favorable interest rates. She added the bonds should be priced by February 4, 2016 and at that point in time interest rates will be set. She concluded she expects that interest rates will be increased throughout the year and short term interest rates will increase by one percentage point. Board member Stephens asked if now is a good time to enter into the bond market, to which Ms. Lewis answered yes. Chair Hyer then introduced in writing proposed Resolution 2016-01, entitled: “A resolution of the Board of Directors (the “Board”) of the Ogden City Redevelopment Agency (the “Agency”) authorizing the issuance and sale of not more than $30,000,000 aggregate principal amount of revenue refunding bonds (the “Bonds”) (in one or more series and with such additional or alternate designations as the Agency may determine); fixing the maximum aggregate principal amount of the bonds, the maximum number of years over which the bonds may mature, the maximum interest rate which the bonds may bear, and the maximum discount from par at which the bonds may be sold; delegating to certain officers of the agency the authority to approve the final terms and provisions of the bonds within the parameters set forth herein; providing for the publication of a notice and bonds to be issues; providing for the running of a contest period; authorizing and approving the execution of an indenture of trust, a bond purchase agreement, a contribution agreement, an official statement and other documents required in connection therewith; authorizing the taking of all other  actions necessary o the consummation of the transactions contemplated by this resolution; and related matters.” Chair Hyer then called for public input regarding the proposed resolution. No persons came forward to be heard regarding this matter. BOARD MEMBER GARNER MOVED THE RESOLUTION BE ADOPTED, AND THE CHAIR BE AUTHORIZED TO SIGN THE SAME. MOTION WAS SECONDED BY VICE CHAIR WHITE, WITH THE FOLLOWING ROLL CALL VOTE: VOTING AYE – BOARD MEMBERS BLAIR, GARNER, LOPEZ, NADOLSKI, STEPHENS, VICE CHAIR WHITE, AND CHAIR HYER. VOTING NO – NONE. Redevelopment Agency Executive Director Comments RDA Executive Director Caldwell thanked the City’s Financial Advisor, Laura Lewis, for her assistance in dealing with complex bonding and other financial issues. Board member Comments Board member Garner welcomed new Board members Lopez and Nadolski and stated he looks forward to working with them. Chair Hyer echoed Board member Garner’s comments. Consideration of adjourning into a Closed Executive Session pursuant to one or more of the provisions of Section 52-4-205(1) of the Open and Public Meetings Law At this time, the Board gave consideration of adjourning into a Closed Executive Session pursuant to one or more of the provisions of Section 52-4-205(1) of the Open and Public Meetings Law: a. Discussion of the character, professional competence, or physical or mental health of an individual b. Strategy session to discuss collective bargaining c. Strategy session to discuss pending or reasonably imminent litigation d. Strategy session to discuss the purchase, exchange, or lease of real property e. Strategy session to discuss the sale of real property f. Discussion regarding deployment of security personnel, devices, or systems g. Investigative proceedings regarding allegations of criminal misconduct BOARD MEMBER GARNER MOVED THE BOARD ADJOURN INTO A CLOSED EXECUTIVE SESSION PURSUANT TO THE PROVISIONS OF SECTION 52-4-205(1) OF THE OPEN AND PUBLIC MEETINGS LAW. MOTION WAS SECONDED BY BOARD MEMBER BLAIR, WITH THE FOLLOWING ROLL CALL VOTE: VOTING AYE – BOARD MEMBERS BLAIR, GARNER, LOPEZ, NADOLSKI, STEPHENS, VICE CHAIR WHITE, AND CHAIR HYER. VOTING NO – NONE. The meeting adjourned into Closed Executive Session at 6:15 p.m. The meeting reconvened at 7:33 p.m. There being no further business to come before the Council, BOARD MEMBER GARNER MOVED THE MEETING ADJOURN AT 7:34 P.M. MOTION WAS SECONDED BY BOARD MEMBER BLAIR, ALL VOTING AYE. ________________________________________ ABBIE ZAMPEDRI DEPUTY CITY RECORDER ________________________________________ RICHARD A. HYER, CHAIR APPROVED: March 22, 2016