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HomeMy WebLinkAbout2012-11-26 URA MinutesPage 1 of 3 Special Meeting CALDWELL URBAN RENEWAL AGENCY November 26, 2012 – 12:00 Noon Community Meeting Room, Caldwell Police Station A special meeting of the Caldwell Urban Renewal Agency convened at 12:00 Noon on November 26, 2012 in Community Meeting Room at the Caldwell Police Station with Chairman ElJay Waite presiding. Roll was called: Present: ElJay Waite, Rob Hopper, Kathy Alder, and Leona Fouts Guests: Mike Stoddard, Zach Wesley, Zach Waggoner, Cameron Arial and community members at large Motion to approve the agenda as presented: Fouts/Hopper M/S/P NEW BUSINESS #1 Consider Resolution 2012-2 Bond Resolution Zach Wesley, Canyon County, stated that the Canyon County Commissioners met and reviewed all documents being presented today and have approved them in form and content. A Resolution (#12-230) from the County recommending that URA proceed with the bonding process has been drafted and signed by the county commissioners and will be forthcoming. Kathy Alder, Canyon County Commissioner, provided an update on the town hall meetings that have been held throughout the year to give citizens the opportunity to learn about, question and comment on the project. The feedback received was predominantly in favor of the project and considered the project a wise use of funds and a good opportunity to take advantage of low rates and construction costs. Kathy stated that the Canyon County Commissioners are committed to careful consideration of the funds during the RFP/RFQ process to insure sufficient funds for both the new building and renovations to the existing building. Facilities management is a stewardship responsibility to which the county commissioners are committed. Kathy further expressed her appreciation for URA’s willingness to support the project and work through the bonding process. Rob Hopper stated that his position as an employee of the county is minimally impacted by this project. He will not be involved in the relocation of offices, will have no personal or professional gain and, therefore, has no conflict of interest in voting on this Bond Sale in his capacity as a URA commissioner. Rob further noted that URA has been informing the taxing entities that they will begin receiving their portion of the increment funding in 2015 and that URA would assist them in anyway possible to effectively use that funding. This bond sale meets the criteria for funding. Chairman Waite stated that the county’s population has grown from 131,000 to 188,000 between 2000 and 2010 as reported by the US Census. URA is aware of the need to allow the taxing entities the opportunity to use URA finding to address needs arising from this growth. Leona Fouts stated that URA has the authority to provide the funding vehicle to allow the county the opportunity to address their imminent need. Bonding and building now is a prudent course of action. Page 2 of 3 Kathy Alder briefly described the moves that will take place between the existing building and the new building. She noted that all spaces in both buildings will be filled. Cameron Arial, VP, Zions Bank Public Finance, noted a slight change in the numbers in the Summary of Bid Results due to a calculation estimate in the draw period rate. He stated that, from a financial advisory perspective, the timing is excellent for these bonds as we are able to use the market to take advantage of the lowest rate possible. Mike Stoddard, Partner, Hawley Troxell, serving as bond counsel for this project, presented an overview of the Bond Resolution and the accompanying agreements and leases. Salient points were as follows:  One purchaser, one owner.  2 year interest-only, 8 year pay back.  Bond Purchase Agreement is an agreement from the bank to purchase the bonds.  The Ground Lease, Assignment of Ground Lease and Admin Building Lease Agreement are the security documents for the transaction.  No funds ever flow between URA and the County, everything flows through the bank.  The bank will allow a draw-type structure so that all funds don’t have to be borrowed up front thereby reducing interest costs.  Canyon County won’t be able to touch the funds until the maximum price contract with a builder is approved and in place.  The maximum funds available are projected to be less than the building project, thereby allowing funds for additional capital projects. The County must identify the projects and submit a request to URA.  The County will lease the property to URA, and then lease it back and assign the ground lease allowing the bank to lease to a 3rd party in the unlikely event of a default. There is no risk to the County that they will lose the ground. Chairman Waite stated that the three security documents; the Ground Lease, the Assignment of Ground Lease and the Administration Building Lease Agreement, will be approved in form today and signed at closing in December. The Resolution 2012-2 Bond Resolution and the Bond Sale Agreement will be signed today. All of the documents have been held at the City Clerk’s office for public review as stated in the Notice of Negotiated Revenue Bonds posted November 19, 2012. One letter has been received in opposition to the agreement to purchase bonds. The letter was read by Chairman Waite. In response to the opposition stated in the letter, Chairman Waite stated that the additional capital projects must be in-courthouse-projects. Discussions began four years ago regarding the disposition of increment funding at the sunset of URA. The County Commissioners have opted to use the increment funding to pay bonds and capitalize on lower rates and costs. Chairman Waite asked County representatives if additional personnel would be added as a result of the new building. Kathy Alder stated that beyond a possible increase in housekeeping staff, she is not aware of any additional staff increases. Chairman Waite asked County representatives if increased taxation would occur as a result of the project. Zak Waggoner confirmed that the County’s General Fund was capped and that great prudence will be taken to avoid increased taxation. Chairman Waite expressed his appreciation of comments from the public and noted that it is important for URA and County Commissioners to have benefit of public input. Page 3 of 3 Paul Alldredge asked if consideration was being given to consolidating the Nampa county offices into Caldwell and what would be the potential financial impact. Kathy Alder stated that consolidation opportunities are as yet unknown. Chris Yamamoto confirmed that the financial impact would be approximately $500,000 to $900,000 in savings to the county if Nampa court rooms were consolidated at the courthouse. There being no further questions or comments, Chairman Waite asked for a vote. Bond Resolution 2012-2 Motion to adopt Resolution 2012-2 and approve issuance of bonds: Hopper/Fouts Votes in favor: Hopper, Fouts, Waite Abstained: Alder #2 Consider Bond Purchase Agreement Rob Hopper noted a correction on Page 2 of Exhibit A: Purchaser Set Up Fee needs to be changed from $2,500 to $10,000. Motion to adopt and approve the Bond Purchase Agreement: Hopper/Fouts Votes in favor: Hopper, Fouts, Waite Abstained: Alder #3, #4 Consider Lease Agreements Motion to approve in form only the Ground Lease, Assignment of Ground Lease and the Administration Building Lease Agreement: Fouts/Hopper Votes in favor: Hopper, Fouts, Waite Abstained: Alder Chairman Waite announced that there was no further business to come before the Board at this time. Motion to Adjourn: Hopper/Alder M/S/P Meeting Adjourned at 12:45pm. Respectfully Submitted, Leona Fouts Secretary