HomeMy WebLinkAbout1988 08-08 EDAM Special Session1
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MINUTES OF THE PROCEEDINGS OF THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN
CENTER IN THE COUNTY OF HENNEPIN AND THE STATE
OF MINNESOTA
SPECIAL SESSION
AUGUST 8, 1988
CITY HALL
CALL TO ORDER
The Brooklyn Center Economic Development Authority met in special session and
was called to order by President Dean Nyquist at 9:58 p.m.
ROLL CALL
President Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and
Rich Theis. Also present were EDA Director Gerald Splinter, Finance Director
Paul Holmlund, Director of Planning and Inspection Ron Warren, City Attorney
Charlie LeFevere, EDA Coordinator Brad Hoffman, and Administrative Aid Patti
Page.
APPROVAL OF MINUTES JULY 7 1988 SPECIAL SESSION
There was a motion by Commissioner Scott and seconded by Commissioner Lhotka to
approve the minutes of the July 7, 1988, EDA meeting as submitted. The motion
passed. Commissioner Hawes abstained from the vote.
APPROVAL OF MINUTES JULY 11 1988 SPECIAL SESSION
There was a motion by Commissioner Lhotka and seconded by Commissioner Theis to
approve the minutes of the July 11, 1988, EDA meeting as submitted. The motion
passed unanimously.
APPROVAL OF MINUTES JULY 25 1988 SPECIAL SESSION
There was a motion by Commissioner Hawes and seconded by Commissioner Scott to
approve the minutes of the July 25, 1988, EDA meeting as submitted. The motion
passed. Commissioner Theis abstained from the vote.
Commissioner Theis abstained from the vote.
FINANCING PLAN FOR EARLE BROWN FARM
The City Manager briefly reviewed the financing plan which has been developed
for the Earle Brown Farm. He noted after much review of the two development
schemes the only difference between the two development schemes was a
downscaling of the bed and breakfast which amounted to $205,557. He added it
would make little sense to pursue a downscaling of the farm's bed and breakfast
because it would mean a loss of three rooms which would generate between $32,000
and $48,000 annually. He explained because of the high interest rate on taxable
bonds, the excess increment from the district can support a bond issue of
approximately $4.2 million net to the EDA. He noted as a result the EDA must
find an alternative financing method to a bond issue. He stated staff is
recommending that the EDA borrow the necessary funds ($5 million) from the
City's investment fund. He explained the EDA would enter into a loan agreement
with the City. He stated the loan would be in the form of a temporary bond for
three years with an option for another three year period. He explained at the
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end of the three or six year period the EDA would have to bond for the remaining
principal.
There was a motion by Commissioner Scott and seconded by Commissioner Theis
directing staff to proceed with finalization of the financing plan for
development of the Earle Brown Farm. The motion passed unanimously.
ADJOURNMENT
There was a motion by Commissioner Scott and seconded by Commissioner Hawes to
adjourn the meeting. The motion passed unanimously. The Brooklyn Center
Economic Development Authority adjourned at 10:08 p.m.