HomeMy WebLinkAboutMinutes 10-01-18 REDEVELOPMENT N AUTHORITY MINUTES
October 1, 2018
PRESENT: Thomas Belter,Jack Bermingham, Steve Cummings, Steve Hintz,Jason Lasky
EXCUSED: Doug Pearson,Archie Stam
STAFF: Allen Davis, Executive Director/Community Development Director; Lynn
Lorenson, City Attorney; Amy VandenHo
en Assistant City Attorney;
Darlene Brandt, Grants Coordinator;Andrea Flanigan, Recording Secretary;
Chairman Cummings called the meeting to order at 12:00 pm. Roll call was taken and a quorum
declared present.
18-14 Approve Third Amendment to Tax Incremental District No. 31
Development Agreement with Fox Valley Pro Basketball,Inc.
Motion by Belter to move Res. 18-14
Seconded by Hintz.
Mr. Davis stated the RDA does have a development agreement and lease with Fox Valley Pro
Basketball, Inc. This amendment addresses the MRO and the minimum assessment guaranty.
Mr. Belter asked for a summary of the risks involved with approving the amendment.
Ms. Lorenson stated the amendment allows the developer to sell the TIF payment each year and
extends the minimum guarantee period from seven years to the life of the TID. Extending the TIF
allows the City to pay down the MRO two years earlier. There was also a cap of $10,000 for 1
administrative costs which was increased to$25,000 with this amendment.
Mr. Hintz questioned if the r iriimum assessment fell below the $18 million during the life of the
TIF it would be the responsibility of the developer.
Ms. Lorenson stated that is correct.
Mr. Cummings questioned if this amendment poses a risk to taxpayers.
Mr. Davis stated the pay-go payment minimizes up front risks.
Mr. Belter stated there would be a risk to the TIF bond purchaser because there is no guarantee
from the City.He inquired what the County's role is in the TIF.
Ms. Lorenson stated they would become involved if the taxes are not paid.
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Mr. Cummings stated the RDA and Council need to approve the resolution.
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Greg Pierce stated Fox Valley Pro Basketball cannot sell the bonds without approval of this
amendment.
The item was called. Motion carried 5-0.
There was no further discussion.The meeting adjourned at approximately 12:15 PM.
(Belter/Bermingham)
Respectfully submitted,
Allen Davis
Executive Director
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