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03/23/2009-4B-Minutes-RegularMINUTES: SANGER TEXAS DEVELOPMENT CORPORATION March 23, 2009 MEMBERS PRESENT: Barbara Martin, Beverly Howard, Scott Stephens, Beverly Branch, Jeff Springer, Will Dutton MEMBERS John Payne ABSENT: OTHERS PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1. Call Meeting to Order. Vice-President Barbara Martin called meeting to order. 2. Approve Minutes: February 23, 2009 Jeff Springer made a motion to accept the minutes as presented. Seconded by Beverly Branch. Motion carried unanimously. 3. Consider and Approve a Development Agreement Between the City of Sanger and Eagle Farms, Inc. and Authorize City Manager to Sign the Agreement at Closing on the Property. City Manager advised that the development agreement was included in their packets for review. He prefen the Board authorize him to sign the agreement between the City of Sanger and Eagle Farms Inc. The conditions of the agreement are contingent upon the sale and transfer of approximately 40-plus acres situated in the M. R. Burleson Survey, Abstract 71 and the R. A. Johnson Survey, Abstract 666. Brief Discussion followed. Beverly Howard moved to approve the development agreement between the City of Sanger and Eagle Farms Inc., and authorize the City Manager to sign the agreement at closing of the property. Seconded by Will Dutton. Motion Carried unanimously. 4. Discussion of Funding Mechanisms for the new Sports Park and Access Roads. City Manager presented the Board Memben with some information regarding the engineer's opinion on the pre-design construction costs for the new Sports Complex. Ted Christensen with Government Capital Corporation continued by advising the Board Memben that he has done three bond issues for the City of Sanger and fmanced several leases for vehicles and equipment. He proceeded in discussing funding options for the new Sports Park and the access roads. Mr. Christensen discussed sales tax revenue bonds. He advised that in today's market these are difficult to sell and the interest rate is sometimes two to three percent higher. He indicated this is not an option he would recommend for the Board to consider. The most preferable types of bonds to issue are certificates of obligation, which are pledged by the taxing authority. The 4B Corporation will then pledge an amount to the City for their debt service payment. The City of Sanger and the 4B Corporation will enter into an Interlocal Agreement. This will officially be on record as a binding document, and by having an agreement on file, it will prevent any problems and misunderstandings in the future. He discussed a 20 year bond issue with a private placement. His presentation included a draft document for a $2 million certificate of obligation bond issue with interest rates at 4.90%. However, the interest rates could not be locked in at this time due to the 60-day requirement process. He did advise that prior to the vote to issue the bonds, he can at that time, lock in the interest rate. Discussion continued. Mr. Christensen advised if the City and the Corporation combine their bond issue, then both entities can share the legal cost. Jeff Springer inquired on the terms of the debt service and the commitment of the funds by the Board. Discussion concerning the terms of financing and how much the Board wants to commit yearly for the debt service. The Board also discussed a 15-year bond debt of approximately $180,000 and the availability of funds for future projects. Mr. Christensen indicated the taxpayers of Sanger are the ones who guarantee the bonds. He advised he will run the numbers for a 15-year debt issuance to determine the approximate yearly payments. Vice-President Martin emphasized that we need to make sure we have adequate parking. The Board discussed the cost for the following improvements: lighting, sidewalks, concession stands, and restrooms. Mr. Christensen indicated that according to the cost estimates prepared by the engineer, there should be adequate funds for these additional improvements. S. Project Updates: a) Streetscape b) Downtown Park a) The City Manager advised that Reliable Paving is still working on a couple of issues but the majority of the work has been completed. b) City Manager apologized for not getting on the downtown park project; however, he had most of the City employees working on a special project last week. He advised this will be accomplished within the next 30 days. 6. Review Financials City Secretary gave a brief overview of the financials reports, cash money market account, and the certificate of deposit investment. An overview of the sales tax revenue was discussed. a) Discussion and Possible Action on Investments City Manager discussed that at the last board meeting the Board discussed investing the funds in a CD ladder. He explained that each month $20,000 would be invested in a certificate of deposit for a one-year term and at the end of 12 months there would be $240,000 invested. Motion was made by Jeff Springer to proceed with investing funds in a CD ladder. Seconded by Beverly Branch. Motion was carried. 7. Adjournment. Vice-President Martin adjourned the meeting.