HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 02/20/2008 (3) KE.NT Public Facilities District
February 20, 2008
Board Members Present: Chair Mike Miller, Vice-Chair Greg Haffner,
Secretary Lew Sellers, Randall Smith, and Cass Prindle.
Others Present: Bond Counsel Hugh Spitzer, Finance Director Bob
Nachlinger, Economic Development Director Ben Wolters, Piper Jaffrey
Representative Jane Towery, and Administrative Assistant Julie Pulliam.
I. Call to Order
a. Introductions. Miller called the meeting to order 4:00 p.m.,
and introductions were made.
b. Approval of Minutes. Sellers moved to approve the minutes of
the special meeting of November 20, 2007. Smith seconded and the
motion carried.
II. Project Overview and Update
• a. Overview of Project Budget. Wolters noted that 25% of the
construction budget has been expended, and that concrete
risers arrived today.
b. Overview of Project Schedule. Wolters said the project is on
schedule and opening is expected during the first week in- !. T"-AAAI.
C. Current Status of Construction. Wolters said placement of the C;L 6-2_1-o
last major piece of steel, or "topping out", should take place in 0"
early April.
d. Update on Operator Selection. Wolters noted that SMG has
been selected as the operator and outlined some of their
projects. It was noted that they will open an office in Kent
after the contract is approved in March.
e. Status of Design and Marketing. Wolters stated that six 12-seat
suites are under contract and three more are being considered.
He noted that advertising in the concourse has been secured,
and that the City and the Thunderbirds are working with three
national companies regarding naming rights. It was noted that
• the interior design will be solidified within the next 45-60 days.
Public Facilities District February 20, 2008
Page Two
III. Finance Report
a. Financial Update. Nachlinger noted that representatives from
Standard & Poor's have visited and were taken on a tour of the
businesses in the city.
b. Review of Bond Rating. Nachlinger announced that after the
tour and review of the financials, Standard & Poor's issued a
bond rating of AA-.
C. Review of Bond Sale. Nachlinger explained that $10,130,000 of
taxable bonds and $53,150,000 of tax exempt bonds have been
sold, which combined came in at a net interest cost of 4.97%.
He added that the arbitrage yield is 5.04%, and clarified that
the deposit to the construction fund will be $61,400,000.
Nachlinger then answered questions regarding the possibility of
losses due to sales tax rate flexibility.
• IV. Action Items
a. Contingent Loan and Support Agreement. Nachlinger explained
that the Underwriters Council expressed concern about the lack
of a notice provision in the interlocal agreement relating to
notification to the city in the event of a shortage of debt service
funds. He explained that the notice provision is not currently
necessary, but may be in the future. Sellers moved to approve
Resolution No. 2008-1 confirming approval and authorizing the
execution and delivery of a contingent loan and support
agreement and related documents and authorizing certain other
actions in connection therewith. Haffner seconded. Sellers
moved to amend the motion by correcting a grammatical error
in the title of the resolution. Haffner seconded and the motion
to amend carried. The main motion then carried as amended.
b. Sales Tax Bonds. Hugh Spitzer explained that the proposed
resolution contains the actual maturity amounts, interest rates,
and standard provisions requested by the bond insurer, and
authorizes the Chair to sign the purchase agreement from Piper
Jaffrey, Lehman Brothers and Wachovia. Sellers moved to
approve Resolution No. 2008-2 providing for the issuance of
sales tax bonds. Smith seconded and the motion carried.
•
• Public Facilities District February 20, 2008
Page Three
C. Revenue Bonds. Spitzer provided a brief explanation of the
resolution, and Haffner moved to approve Resolution No. 2008-
3 providing for the issuance of revenue bonds. Sellers seconded
and the motion carried.
V. Other Business
a. Regular Meeting Time. After a brief discussion, Haffner moved
to set the last Thursday of every other month at 3:30 p.m. as
the date and time for regular meetings, beginning March 27,
2008. Sellers seconded and the motion carried.
VI. Executive Session
No Executive Session was held.
VII. Adjournment
• Sellers moved to adjourn at 5:02 p.m. Smith seconded and the
motion carried.
Brenda Jacober, CMC
City Clerk