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06/22/2009-4B-Minutes-RegularMINUTES: SANGER TEXAS DEVELOPMENT CORPORATION June 22, 2009 MEMBERS PRESENT: John Payne, Beverly Howard, Scott Stephens, Jeff Springer, Will Dutton MEMBERS ABSENT: Beverly Branch, Barbara Martin OTHERS PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1. Call Meeting to Order. President Payne called meeting to order at 6:13 p.m. 2. Approve Minutes: May 11, 2009 Motion was made by Jeff Springer to approve minutes as presented. Seconded by Scott Stephens. Motion Carried unanimously. 3. Authorize the Execution of a Sales Tax Remittance Agreement with the City of Sanger and other Matten Related Thereto. Ted Christensen, Financial Advisor with Government Capital addressed the Board concerning the Sales Tax Remittance Agreement with the City of Sanger. Mr. Christensen discussed that this debt will be issued by the City. The City property tax guarantees the debt. The payment will be about $170,NO to $190,NO a year. The EDC will pay their share of the debt to the City. The agreement is between the EDC and the City of Sanger. The purpose for it to be a written document is to protect future corporation boards, future city councils and Mayon on what was agreed upon in 2009 when this debt was issued. Mr. Christensen advised that the City Council will not vote to issue bonds unless the agreement is signed. The agreement was a generic draft format that was provided by Bond Counsel that he modified for the City. The City Council bas already had one meeting for the bonds and the vote to issue the bonds will be done on July 6, 2009. Jeff Springer asked if there was reason for the low-range amount to be in the agreement. Mr. Christensen indicated that the minimum payment for this debt would be at least $170,000 with the maximum cap at $190,000. There was a lengthy disc,-sien concerning the section that referenced the minimum payment in the agreement and the bond debt. Mr. Christensen indicated that the agreement can be revised. Jeff Springer indicated that it appean to him that the EDC is giving all the control for this specific bond to the City. Mr. Christensen indicated that he was correct. He continued to discuss the estimated payment and how the City's share will be determined. He told the Board that they could amend the agreement to change the wording concerning the minimum payment. John Payne asked that based on the agreement, the EDC is obligated for a debt payment of $190,0N a year. Mr. Christensen indicated that the payment would not exceed $190,000 a year. It will depend on the final interest rate of the bonds, and the rmal amount of the $3.2 million that is attributed to the land purchase and the improvements. Mr. Christensen discussed the restrictions on prepayment of the bonds. He also discussed that the City's credit rating is significantly better than any economic development corporation. John Payne expressed a concern regarding the bond payments for the next 15 yean and the amount of revenue that would be left for future projects. Jeff Springer indicated that he is sure the sales tax revenues will continue to go up. Mr. Christensen continued to discuss the bond debt and that the debt is obligated by property taxes. Jeff Springer asked how the determination will be made as to what portion of the debt belongs to the EDC and how much belongs to the City. Mr. Christensen indicated that land and improvements will determine their percentage of the debt. Mr. Springer asked that the City will issue $3.2 million bond debt regardless of what the 4B spends on the park. Mr. Christensen indicated that whatever the 4B does not use for the park improvements, the City will use for street improvements. Jeff Springer indicated that the agreement needs to state this so three yean from this date someone has it in writing as to what was to be done. Jeff Springer indicted that he would like two more recitals in the agreement which are as follows: Whereas, the Corpontion has approved the p1:1rchase of land and constnction of improvements for the purpose of a new sports complex and has agreed to pay the purchase price of the land and improvements; and in parenthesis they can call it the "project". In Section 1.3, to add that the project will be financed with a portion of proceeds of the certificates. In Section 1.1, to remove the minimum cap of the bond payment that was set at Sl 70,000. Mr. Christensen reviewed the changes with the board members as amended. Jeff Springer moved to approve the EDC Sales Tax Remittance Agreement as amended. Seconded by Beverly Bnnch. Motion carried unanimously. Mr. Christensen advised he will correct the documents for proper execution. 4. Project Updates: a) Streetscape b) Downtown Park c) Sports Park A brief update continued on the status reports on the 4B projects. The downtown streetscape project still has some items to be completed; installation of the planter boxes, connection of the irrigation system to the planters, and installation of the trash receptacles and the park benches. The Downtown Park project will hopefully be completed by July 1. The City of Sanger has closed on the property for the Sports Complex. Staff has met with a potential architectunl firm to assist with the design and layout of the sports field. The board members discussed that they would like to be able to sit when staff meets with the architectunl firm on the design and layout of the sports complex. S. Review Financials The City Secretary went over the f"mancials, and the sales tax collections for the month. The combined balance on all interest-bearing accounts was $481,900.89. Brief discussion followed. 6. Adjournment. Motion was made by Scott Stephens to adjourn. Seconded by Beverly Howard. Motion carried unanimously.