HomeMy WebLinkAbout08-04-92CITY OF LAKEVILLE
HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 4, 1992
Chair Mulvihill called the meeting to order at 7:15 p.m. Roll call was taken.
Present: Commissioners Ruhmann, Zaun, Sindt, Mulvihill and Harvey.
Also present: R. Erickson, Executive Director; D. Feller, Finance Director.
MINUTES
Minutes of the August 3, 1992 H.R.A. meeting were approved as printed.
ITEM 3
Chair Mulvihill opened the continued public hearing on the issuance of ice arena
lease revenue bonds in aggregate amount not to exceed $1,375,000 for the purpose
of financing a project consisting of the acquisition, construction, and equipping
of an approximate 40,000 square foot ice arena facility to be located at Ipava
Avenue and Trunk Highway 50.
Mr. Steve Mattson, Juran & Moody, stated that their firm has not been able to
find buyers for the entire ice arena bond issue. He also stated that the major
problem for not being able to sell the bonds was investor concern over purchasing
bonds backed by pull tab revenues. There is an ongoing concern that consumers
only have a limited amount of money available for gambling to be spent amongst
many competing organizations. Interest rates on the bonds were not an issue with
investors.
Mr. Erickson suggested that the H.R.A. might wish to seek a second opinion
regarding the marketability of the issue from another underwriter utilizing the
offering statement as prepared.
Commissioner Harvey supported the recommendation of the Executive Director. He
indicated he did not support Juran & Moody's proposal to seek bids based on a
modified offering statement. He stated that the lack of a consistent twelve
month record of pull tabs weakens buyer confidence. He also stated the public is
not amenable to having the bonds parked for two years only to have them called.
Commissioner Mulvihill stated that an extensive amount of work had been put into
the preparation of the memorandum of understanding and it should stand as
approved.
Commissioners were in agreement that they should give Juran & Moody some
additional time to market the bonds; however, they did not support modifying the
terms of the offering statement.
Steve Mattson stated that Juran & Moody would like to continue to pursue sale of
the bonds as is. Juran & Moody is stunned that the investment product has not
sold prior to this point.
92.15 Motion by Sindt, seconded by Harvey, to continue the hearing until August 17.
Roll call was taken on the motion. Ayes: Zaun, Sindt, Mulvihill, Harvey and
Ruhmann.
There being no further business, Chair Mulvihill adjourned the meeting at 7:45
p.m.
Respectfully submitted,
WenzefRuhmann, Secretary
L tte Mulvihill, Chair