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<br /> City Manager Fales pointed out that the recommended use'of Bond Antici-
<br /> � pationxNotes (BAN) contained'in the report``�indi'cates��Mobil's willing-
<br /> , ,ness^�to'advance'`funds,`observing that�`Mobil would certainly be reluctant
<br /> to';advance'`funds without'assurance�"of being repaid.� Mr. Fales ,emphasized
<br /> the''need.�for the pro,7'ects`p`reviously mentioned for-' the pr,esent,development
<br /> wFiether``or"not'any future d`evelopment is to'occur �In response to ques-
<br /> �tions;�he�advised that"witfiin the bounds of what is pr,esently obligated,
<br /> some options'are"ava}�lable``to Council, but Council cannot,bind any
<br /> f,uture�CounciTs: `�"` �'- ° ` . ' '�' �, „_ °, ,
<br /> ;e .�, „�_,, �
<br /> In response to question, Director of Public Works Pusich stated that in
<br /> orde`r �for his 'dep'artment to'make precise lans, i necessa'ry. to know
<br /> whaf��s'expected�to"8evelop. '" � ' " p � ""_° ' -
<br /> ;��, : .� �,,,� - w;,� m .r�
<br /> Discussion followed and Mr. Fales and City At,torney Schri,cker commented
<br /> and replied'to questi"ons concermng the difficulty o,f pr.oyiding� s,pecif�c
<br /> co`st`information to individual" homeowners, the fact that figu,res can be
<br /> provided �for�pro,7ects on_ �but that s�nce home-
<br /> owners�'would have'nothing, witFi whi,ch" to compare figures_ they, would not
<br /> be� of' mu`ch value, the des`ire of• homeowner"s for_ info'rmation; and- the
<br /> alternatives�if:�roads ar"e not`impr�oved� and the weter line
<br /> Mr°';Kuebelb'eck ad"v�sed"that�"it_'is imposs'ible to p�rovide.prec'ise,figures,
<br /> until`-the method�of 'financing is known"; noting that"hi's� studies' indi-
<br /> cate that�anything`other,'than general'obl'igation'`bonds wil°llresult�in�
<br /> hi'gher cost `to for" tmpro'vements � ,
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<br /> Attention was called to th,e provision of ORDINANCE,NO: 1128 stating�that
<br /> "out unappropr,iate"
<br /> � „�i s :r'.,.,r r �S s'.,' :` 4�✓�� f �y° . a ,. > .
<br /> Councilman Norris_agarn referred to his memo;suggesting„tha,t�,if�the,City
<br /> deci'des`not to`pa'rticipate development qf.the,Distract them
<br /> pe'rfiap"s"there be some=mitigation from sales tax for Distr,,ict
<br /> homeowners with� rega`rd'�'to'"improvement,s'�.wh,ich;would.per,mat development, ,
<br /> of"•'�a��shopping cente'r"which,w�ll"generate�sa,les tax. Mr, Fales=,noted�
<br /> tFiat the'i,n=place:value of commercial development'would have�a,favor-
<br /> able°impact°"on''the taxes paid by,homeowners.` '` `'
<br /> . _ ., av, a. sk+ .�%.�^ ..�, a � ,�s av .,.ea r
<br /> _ •+
<br /> Mr. Kuebelbeck described the use of„Bond Anticipation Notes_(BAN), (See
<br /> page l�of`;the "report) "`He advised `that the�Notes�would�be„issued for
<br /> one'�to`th`ree'�years`'including;`"in'terest,to,maturi'ty toib'e.refrnanced�by_,
<br /> is'suancezof ,long term Gene,"r,a1 (GOB) when fai,r market�
<br /> value place' He'stated�that, pursuant.to,agreement,wi,thw
<br /> the District, Mobil'.`would co'mmi,twto',ad'vanc`e�,funds sufficient •to ablow
<br /> tYie=DiMtrict to`re'tire"the BAN�;;, when due'�`" Thus, :ins of,tissuing ;
<br /> bonds a'forecast basis`l'as'th'ey�,were,.i'`ssued;prev,iously„the„BANn;s
<br /> would�be"��ssue'd'`to 6e,'covered by Mo6i,1 witli`,the GOB's,not issued ;
<br /> unti 1� "_there is' a �" ' �
<br /> t i ` e. . V v a' t.+ � e ��✓
<br /> p'ro,7ect of,value in`place
<br /> R rZl�, t 1 � f'L -+" , y: d ' F �� o� .. � a� q 4
<br /> In response to suggestion tha,t if Mobil is willing,.to enter,r„�nto ; such>-m �
<br /> am agreement`', �Mobil inust fiaJe',con'fidence �ab,il��ty�of�the,com�.
<br /> merci�al et ,val�ue„�Jim,Newman, of. Mobil acknowledged,.;
<br /> th'at Mobil',is^very optimistic. He"stated�tFiat}Area�B,wil,l'cerytannl,y�
<br /> generate"value, �th`at,'no` Dtst'rict money_ is needed,to 4 devel,op;Area : C,�
<br /> and�'that f be re,quired. in the.immediate futur,e=�to � �
<br /> keep�the permit'a`live,'�no th'a`t e'ven'if;shopping,,center not �
<br /> '� progress�as"antici'pated, A�rea A could,be developed,as,,an,offace,park.-�
<br /> , Mr �Newman advised that' Mobil has entered a oint venture�a reemen,t�, j
<br /> � � r ��
<br /> with De`�Ba'r`to`lo;'p"rospective 8evel of,�the,_s in center, '
<br /> � '�a,;s *�, s��;ee�:�.., Y,. �ti•�. , � „, �r=.;� �, pP, 9�,,, , !
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<br /> � k'
<br /> Study Session _q_ �
<br /> �GID No. 1-64 - �
<br /> �11/7/77 ' ° " . �
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