CRA Minutes 09/12/2008 - Laserfiche WebLink

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Community Redevelopment Agency September 12,2008 Page 2 of5 Fifth Item of Business: Concord Center Refinance Mr. Randy Newlon, Finance Director, reviewed the staff memo dated September 5, 2008 (a copy of the memo is on file in the Community Development Department). Mr. Newlon said that the Concord Center loan is being refinanced with Hancock Bank. He said it is a three year interest only note with no prepayment penalty and a 5% interest rate. A general discussion ensued regarding the $24,883 interest payment to settle the Land Acquisition Note, Series 2005. Mr. Daigle made a motion to approve the budget transfer of $24,883 to satisfy the interest payment. Mr. Jones seconded the motion. The motion passed unanimously by voice vote. A brief discussion ensued regarding the interest rate for the Hancock Bank note. Mr. Newlon explained the rate was based on resale of the property for redevelopment and the Bond Council determined that the note did not meet the criteria for a tax exempt status. In response to Mr. Daigle's question, Mr. Newlon said that the transfer for 2009 needs to be adjusted; however, there is still some unresolved business. He said the note on the 15 acres (City Center property) will be refinanced in November 2008. Mr. Newlon suggested the CRA revisit this item after the refinancing of the two notes is completed in order to adjust the transfer amount. Mr. Paradise said the finalized Development and Distribution Agreement will provide a schedule for the developer's adoption of the payments and the sale of the property to the developer. He said at that point the CRA's obligation for payment of interest will seize. Ms. Lipscomb said the Concord Center's appraisal is being updated and that property will be out for bid for development purposes. Mr. Newlon explained that the 2008/2009 CRA Budget included a line item for $225,000 for support of the Plumosa Avenue Intersection Project. He said after reviewing the budget, it was determined it was a duplication of an item that existed in the 2007/2008 budget; therefore, it was deleted from the 2008/2009 budget. Sixth Item of Business: Public Art at Lake Concord Mr. Paradise reviewed the staff memo dated August 29, 2008 (a copy is on file in the Community Development Department). He said the cost of the water feature is $18,000. Mr. Paradise said $10,000 was allocated in the 2007/2008 budget and another $10,000 was allocated in the 2008/2009 budget for public art. Mr. Paradise said the funds from the 2007/2008 budget could be rolled into the 2008/2009 budget to fund the water feature.