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  • Call to Order Chair Fullmer opened the meeting at 8:05 PM.   2.      CONSENTAGENDA 2.1.   Approval of the February 24, 2021 RDA Meeting Minutes
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  • Motion:Boardmember Judd moved to approve consent item 2.1. Boardmember Flake seconded the motion. Chair Fullmer, Boardmembers Earnest, Flake, Judd, and Welsh voted aye. The motion carried unanimously.     3        business items 3.1  discussion and action – Tentative Fiscal Year 2021-2022 Budget Assistant Finance Director/Treasurer Mariah Hill will present the proposed Tentative Fiscal Year 2021-2022 RDA Budget. The Board will review and possibly act to approve the proposed Tentative Fiscal Year 2021-2022 RDA Budget and set a public hearing for May 26, 2021.
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  • Assistant Finance Director/Treasurer Mariah Hill reviewed the proposed budget. There was a discussion about the Capital Projects. Mr. McHargue mentioned that they had triggered Phase 4 of the RDA tax increment.
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  • Motion: Boardmember Juddmoved to approve the tentative Fiscal Year 2021-2022 budget and set the public hearing for May 26, 2021.Boardmember Earnestseconded the motion. Chair Fullmer, Boardmembers Earnest, Flake, Judd, and Welsh voted aye. The motion carried unanimously.     3.2  Discussion and action–Underwriter for 2021 Bond City Manager Jacob McHargue will present a recommendation for a bond underwriter for the 2021 Bond. The board will take appropriate action.
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  • City Manager Jacob McHargue explained the underwriter selection process and what their responsibilities would be. Staff recommendations were to appoint Stifel as the Senior Bookrunning Manager with RBC Capital Markets as the Co-Manager.   There was a discussion about how the underwriters and bonds would work.
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  • Motion:Boardmember Welsh moved that we take the recommendation from the pricing committee and appoint Stifel as Bookrunning Manager with RBC Capital Markets as Co-manager for underwriting the 2021 RDA Bonds.  Boardmember Judd seconded the motion. Chair Fullmer, Boardmembers Earnest, Flake, Judd, and Welsh voted aye. The motion carried unanimously.    3.      ADJOURNMENT
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  • Motion:Boardmember Flake moved to adjourn the meeting at 8:17 PM. Boardmember Earnestseconded the motion. Chair Fullmer, Boardmembers Earnest, Flake, Judd, and Welsh voted aye. The motion carried unanimously.     RDA meetings are scheduled as necessary.     MINUTES APPROVED ON:   May 26, 2021   CERTIFIED CORRECT BY:    /s/ Pamela Spencer Pamela spencer, city recorder
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Transcript

Event transcript
805 Pam, are we ready? We're rolling. OK, I'm going to. 00:00:02
And we're going to move right into silencing the whole room so that we can hear the minutes. 00:00:10
A little bit better. 00:00:17
Boom. That's getting. 00:00:20
I need a motion to approve the consent. I'll make the motion to approve the consent item 2.1 all in favor. 00:00:25
OK. Business item is 3.1 discussion in action. This is going to be Mariah presenting our fiscal year for this. 00:00:34
4. 00:00:42
And this is our alternative. 00:00:44
Oh, no. Sorry. 00:00:46
Sorry, I thought it would start OK. This is for the. 00:00:50
Vineyard RDA agency tentative budget here is so the total budget for this here is $70 million, but that is because we are bonding 00:00:57
for 49,000,000. So this graph shows the tax increment that the RDA has collected over the last seven years. 00:01:06
So here's the the revenue and expenditures as they are going, coming and going in the RDA. So our property tax about 10 million, 00:01:17
our admin costs 400,000 interest of 300,000, our bond proceeds 49 million, our grant revenue 3 million and we're using the fund 00:01:24
balance of 7 million and then. 00:01:31
Expenditures of 450 for personnel and admin costs. Contracted services of 87,000. 00:01:39
TIF payments of 25,000,000 that includes the repayment of. 00:01:46
The portion of the water's edge agreement and then bond payments of 25,000,000 that also. 00:01:51
Includes some bond repayment of our 2017 bond series and our sixteen, I think a $460,000 for the bond issuance costs and then 00:01:57
capital projects of about 18,000,000. 00:02:03
And then this is the list of the capital projects that are included is the water tank would the portion from the RDA 7,000,005 00:02:10
million for the rail spur, 3,000,000 for the lakefront project, lake bottom canal screen 92,000 environmental remediation 2 00:02:18
million the Mill Road ext 1,000,000 and we need to do some wire upgrades for the sprinklers on Main Street and that's 150,000. 00:02:26
And that's all. 00:02:35
Questions. 00:02:37
No. 00:02:40
Budget and and so tonight you're not necessarily approving the projects, you're approving the budget and it's a it's a tentative 00:03:16
budget. So these projects will still come back to the RDA board for their approval. Can you give me a quick update on timeline for 00:03:23
these projects just off the top of your head, just a minute. Oh my gosh, John, two years for the water tank, two, yeah. So the 00:03:31
water tank has to be completed by June of 23. The rail spur, we're thinking probably a three-year timeline. 00:03:38
Just get done with what they're doing, yeah. 00:03:46
The Lakefront Lakefront Project. The money has to be spent in the next two years. 00:03:50
That's the beach plant. That's the grant we got from the county. 00:03:57
The lake bottom canal is up to the the owner. Yeah, environmental remediation is ongoing. We just anticipate that it'll cost about 00:04:01
$2 million this year. So I don't remember what that means. The environmental remediation is all of the cleanup work that we're 00:04:07
doing on the North End of the city, on the east side mainly now most of the West side's done, but it's all of those. 00:04:14
The RDA applications that were approved in the past with Anderson Geneva to participate in the cleanup. 00:04:21
So we have those ongoing obligations. We anticipate there will be about $2,000,000 in clean up this year that's RDA reimbursable 00:04:30
the Mill Road ext. 00:04:35
Would. 00:04:41
A. 00:04:44
We have $1,000,000 in there to do the initial design and then start the work. We don't know how far we'll get in that process. 00:04:46
The project is more than $1,000,000, but we anticipate we would not spend more than $1,000,000 in this fiscal year. But that would 00:04:53
connect Mill Rd. from 800 N where it currently is up to 1600, which would open up a lot of land on the North End of the city for 00:04:59
development. And then the Main Street Sprinkler wire project is something that we've been wanting to do internally. 00:05:05
We've been taking all of the. 00:05:12
Water's Edge projects over and this is one of the projects that we didn't like how it was installed initially and so we're going 00:05:18
to complete it again. 00:05:22
The way we want it. 00:05:28
And I believe there were some cuts in the lines. And so there's just some cleanup work that needs to be done. And so that'll be 00:05:29
done on our own. 00:05:33
Is that project exclusively sprinklers or does that also include? 00:05:39
Landscaping. 00:05:44
It's. 00:05:45
Cost as it's being presented right now is strictly the cost to get the wire fixed. 00:05:47
That's all. Any other questions? OK. And I just want to make one more comment. I think Mariah is doing a wonderful job and I want 00:05:56
to thank her for all of her work on this. And then there's one more comment on the RDA increment. 00:06:03
We have triggered a phase four and so this new increment is coming in is indicative of that there's a new we're just cleaning up a 00:06:12
lot of the, we kind of parceled it out, take the mayor's term with a scalpel. The last few times as development came in, we're 00:06:18
kind of cleaning up that area out by the megaplex and. 00:06:24
Edgewater. 00:06:31
And the Maverick. 00:06:33
Adding all of that into phase four. 00:06:34
We have a clean slate and we can move forward with the next few phases as it develops out. 00:06:38
OK. If there are no other questions, I just need a motion. 00:06:43
Do we need to make the same comment about May 26th? 00:06:48
I can make that motion once I get to the sample motion. 00:06:54
There isn't one for that. I was actually looking. I will make the motion that we approve the tentative fiscal year 20/21/2022 00:06:58
budget and have the public hearing set for May 26th, 2021. 00:07:05
Second. OK, all in favor. 00:07:12
OK, we'll go through 3.2 discussion action. This is talking about the underwriter for 2021, Bond, and Jake's going to present 00:07:17
this. 00:07:20
OK. So as Chris mentioned earlier, we. 00:07:25
Louis Young created an RFP and had five responses. 00:07:30
From 5 separate underwriting companies, we met on Tuesday, I believe, was it, yeah, yesterday. It's been a long week. 00:07:36
To talk through all the responses that we got and we kind of felt like there were two top candidates from the responses. 00:07:45
The. The. 00:07:54
Fees that they charge are based on the total. 00:07:55
Issuance of the bonds. And so they ranged from 149,000 to 224,000 and that's the fee that covers mainly the salesman that will be 00:07:59
selling these bonds on the market. Two of the companies that we really liked were Stifel, who is formerly George K Bomb. They're a 00:08:06
local company. 00:08:13
And then RBC Capital Markets. 00:08:21
They were two of the lower cost. 00:08:25
Options and we believe that they were their their staff and the experience that they had sewing comparable bonds were the most. 00:08:29
Valuable as we analyze the options. So our staff recommendation is that we appoint Stifel 01 more comment. When we went through 00:08:39
the conversation as we were talking to Louis Young, they said it's commonplace for a bond of this size to have Co managers. 00:08:47
And So what these different groups do is they go out and market to the companies that they know are in the market for bonds. And 00:08:55
so if you have two companies doing it, apparently your reach is better and the more people you have interested in purchasing the 00:09:00
bonds, the lower your interest rate will be. 00:09:05
And so they said with a bond this size, it would make sense for the city. And there's a lot of value in having two people. And so 00:09:11
we're recommending. 00:09:15
That we appoint Stifel as the senior book running manager and RBC Capital as the Co manager. And then as we go through the rest of 00:09:19
this pricing, we can analyze exactly how much of the book we want to give to each of the companies or how much responsibility and 00:09:25
then we'll work with them as we move forward so. 00:09:31
That's the staff recommendation. I'm happy to answer any questions. Oh, sorry, Mayor. 00:09:37
Will you just dumb this down like 10 notches? Talk to me like I'm in kindergarten and explain what we're doing? 00:09:42
I understand underwriters and things, but what are we doing? Yeah, so essentially. 00:09:50
You're we're picking an underwriter that's going to go out and find the investors to buy our. 00:09:55
Bonds are bond. They're going to, we're raising money. So let's take a step back even further. So we have, we have borrowed money 00:10:03
to do a lot of the projects in the RDA. The city doesn't currently have any debt. RDA does have debt. 00:10:10
And so we've we've borrowed money and we've pledged future, so every year we pull tax increment in just like the city post 00:10:19
property tax in the RDA, post tax increment in this year, Mariah said. It's just over 10 million part of that every year is 00:10:24
pledged to repayment of our current bonds. 00:10:29
The new bonds that we're issuing will refinance some of the current debt that the RDA has and so because we can get it for a 00:10:35
cheaper interest lower like we're refinancing the house. 00:10:40
So we're refinancing some of the current debt. We're pulling new debt in so that we can fund more projects. 00:10:46
On the north. 00:10:53
And then? 00:10:54
The way that we're doing that is we're going out to market and so in the past we've issued bonds, but they've been private 00:10:57
placement bonds. So we've gone to a company that had money and we said. 00:11:02
Look, we can repay you. Yes, This time we're hiring a company. 00:11:08
To go out and sell it to people that don't know Vineyard and so. 00:11:13
Right. 00:11:19
Yep. And so they can get us a lower interest rate. And so we're paying them to go get us a lower interest rate. Yeah. And and to 00:11:21
be clear, they, they represent both sides, right. So they also represent the investors that they're. So they're, they're kind of 00:11:27
in between US and the investors that are going to be putting, buying those bonds. And the reason like Jake said for the 2 is 00:11:33
really the two companies. 00:11:39
I'm not gonna say they compete against each other, but they they can. They're outreach to all the investors is going to be wider 00:11:45
spread and so more. 00:11:49
More people calling. If you have a call center per se. Trying to get these investors to buy the bonds will drum up demand. 00:11:54
And hopefully drop, which will drive down your rate. 00:12:00
Yeah, because if you have people bidding against each other essentially. 00:12:04
OK. Any other questions? Christy, it looked like you had something. 00:12:11
I can make a motion if no one has questions, OK, I make a motion that we take the recommendation from the pricing committee and 00:12:15
appoint people. 00:12:19
As manager. 00:12:24
People. 00:12:26
Senior Book Running Manager and RBC as. 00:12:29
Co manager as the underwriter for the 2021 RK Bonds. I'll second that. All in favor. Aye. OK, Great. Interesting motion to 00:12:32
adjourn. Second and favor. Thank you all for coming. 00:12:39