HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 12/21/1984 CITY OF KENT
ECONOMIC DEVELOPMENT CORPORATION MEETING
December 2I, 1984
The meeting of the Kent Economic Development Corporation was
called to order at 8: 00 a.m. by Chairman of the Board, Tim Leahy.
Present: BOARD MEMBERS: Councilman Tim Leahy, Chairman
Councilman Tom Bailey
Leo Powers
Mike Miller
OFFICERS: City Attorney P. Stephen DiJulio,
General Counsel
Finance Director Tony McCarthy,
Treasurer
Bill Tonkin of Roberts & Shefelman,
Bond Counsel
Deputy City Clerk Betty Gray, Acting
Secretary
Tonkin reviewed the agreement for the H & H Company project, noting
that it was a simple bond agreement between the Corporation, Rainier
Bank as the purchaser of the bonds , and H & H Company and its
partners, as partners and as individuals. He noted that the
security consists of the individual partners ' signing as individuals
and their individual guarantees. Tonkin also pointed out that H & H
Company would give a Deed of Trust which will be assigned to Rainier
Bank covering the new project being built, plus any existing proper-
ties they now have. He referred to a mortgage to Seattle Trust,
on part of the existing property. Tonkin also noted that the bonds
have a stated maturity of 20 years but that Rainier has the right
to require the redemption of the bonds on the 5th anniversary or
on the 7th anniversary of the date of issue, and the Company is
obligated to provide the funds to make that redemption, either
by paying the money itself or finding other purchasers for the
bonds. Referring to the interest, he noted that for the first
six months interest only is paid, and thereafter both principal
and interst. Tonkin explained the complexity of some of the
provisions required by Rainier Bank in the agreement to protect
their return on a tax exempt basis, such as changes in the law
resulting in an increase in the corporate tax rate or disallowance
of certain items of deduction as examples.
Tonkin distributed Resolution No. 1984-14 for the Board's con-
sideration. POWERS MOVED to adopt Resolution No. 1984-14, Miller
seconded. Motion carried.
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December 20, 1984
Questions were raised as to the possibility of setting up some
sort of telephone conference call to conduct Corporation business
when it was not possible for all to attend the meeting. DiJulio
noted that he would do further checking on this. It was also
determined that a Special City Council meeting would be held at
9 : 00 a.m.. on Friday, December 28 , 1984 to approve the action of
the corporation taken today and that five Council members would
be present at that time. DiJulio also noted that the next
regular meeting of the Corporation would be held on Thursday,
January 3 , 1985 at 7: 30 a.m. , at which time an application from
Jim Plemmons was expected to be considered. Referring to Alaska
Freight Consolidators, he noted that as of this date no further
word had been received. He also noted that Northwest Aluminum
would not be ready to close before the end of the year.
In answer to questions, DiJulio explained the method of determin-
ing the fees charged by the corporation and the reimbursement to
the City for its expenses incurred.
The meeting was adjourned at 8 :30 a.m.
Betty Gray, Deputy City Clerk
Acting Secretary
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