Loading...
HomeMy WebLinkAboutMinutes_Miscellaneous_06/02/1997_Redevelopment Committee F tf yP _ p � G �' r .� � � � VILLAGE OF TEQUESTA r" � Po.St Office Iic>� 3273 • 377 l'eyue.5ta Dri� c �� �� o` "I'equesta, Florid.i 33� i69-0273 • (>61) 7?�-C2(N) � _� �` ��� Fah: C561) 57�-6203 F4 �N COU S4 VILLAGE OF TEQUESTA REDEVELOPMENT COMMITTEE MEETING MINUTES JLTNE 2, 1997 I, CALL TO ORDER AND ROLL CALL The Tequesta Redevelopment Committee held a regularly scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Monday, June 2, 1997. The meeting was called to order at 8:32 A.M. by Chairman Carl Hansen. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were: Chairman Carl C. Hansen, and Co-Chairs Joseph Capretta and Ron T. Mackail. Also in attendance were: Village Manager Thomas G. Bradford, and Finance Director Bill Kascavelis. Village Clerk Joann Manganiello arrived at 8:36 A.M. II. APPROVAL OF AGENDA Co-Chair Mackail made a motion to accept the agenda as submitted. Co-Chair Capretta seconded the motion. The vote on the motion was: Carl C. Hansen - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted and the agenda was accepted as submitted. �l���rr2�d t�«p�,� REDEVELOPMENT CONIlrSITTEE MEETING MINUTES JUNE 2, 1997 PAGE 2 ----------------------- III. COMMUNICATIONS F�.2QM CITIZEN5 There were no communications from citizens. IV. DISCUSSION OF DIRECTOR OF FINANCE'S REPORT ON FTNANCING PROPOSED PUBLIC FACILITIES Village Manager Bradford commented that at the last meeting of the Committee, staff had been requested to determine the total cost of new facilities. Village Manager Bradford reported that the public safety facilities would cost $2.5 million; Village Hall would cost $2.2 million, and to remodel the Recreatian Center in its entirety the cost would be $382,000; or a total tor everything of $5.1 million. The Committee had requested revenue projections from new construction in the community which would help �inance �he facilities, which Fin.ance Director Kascavelis reported to be $220,980. The Committee had also requested financing options, including information from Barnett Bank regarding a letter of credit,. Clark Bennett re�orted that Barnett Ban.k would furnish a $1,000,000 letter of credit at a rate of 69.770 of prime, which would change as prime changes. Interest would be paid only on the amount drawn down. A one-time facility fee of $1,000 would be charged, and the attorney's fee would be $2,000. Principal would be repaid at term. Mr. Bennett explained that permanent financing for the project would be expanded to include the bank letter of credit. Barnett Bank had asked that the credit represent a general obligation of the Village, to which Mr. Bennett had objected because that would require a referendum if the borrowing exten.ded over a year. Mr. Bennett had explained that the Village would pledge assets other than ad valorenl revenue so that the bank would not require this loan to be considered a general obligation. In order for the bank to give the preferential rate quoted which was one-half percent lower than the Village could get anywhere else, the Village could issue no more than $10 million in a given year. This was based on Treasury Department rules which allowed the bank to receive tax-exempt status on the income from the loan and to deduct the cost of carry. By keeping total borrowing under $5 REDEVELOP'MENT COMMITTEE MEETING MINUTES JL7NE 2 , 1997 PAGE 3 ----------------------- million, the Village could keep any arbitrage earnings. The construction fund could be invested and no rebate on earnings would be required. Mr. Bennett commented that he expected the Village would use the letter of credit for engineering and preliminary work. Mr. Bennett reviewed annual debt service schedules of Public Safety facilities at 6% and at 7°s. At 6%, total principal and interest at the highest point would be $213,710. The highest principal ar�d interest payment in any given year would take place in the year 2010. At 7o the maximum would occur in 2425 and would be $240,827. Mr. Clark explained that all issuance costs of a bonding issue had been included. C?ne of the assumptions Mr. Clark had made was that the Village would insure the bonding, which would raise the rating ta.AAA, making it more appealing to bond buyers. Mr. Clark also assumed that the insurance company would provide a debt service reserve surety, negating the necessity of a debt service reserve, normally 10% of the par amount of the bonds, or an additianal $240,000 in one of the scenarias presented upon which interest must be paid. Mr. Clark had also placed the construction fund at interest over at 18-month period, which would reduce the amount needed to fund the proaect. In the 6% scenario, the debt service fell within revenue projections. Debt service would be paid from utility service tax plus ad valorem property taxes. Mr. Bennett commented that these scenarios were for constructin:g the Public Safety facilities only. In response to a question from Chair Hansen regarding starting a Village Hall project before the Public Safety construction was finished, Mr. Bennett responded that overlapping projects would add additional fixed costs because each project would require a new funding. Mr. Bennett explained that he had done scenarios giving a 60 and a 7o figure for doing both the Public Safety and Administrative complex at one time; and also if Public Safety, Administration, and the Recreation facility were done at one time. All of the scenarios assumed that interest rates stayed constant and that the Village issued the bonds 10-1-98, so that the first principal payment would be due in 1999. For the Public Safety and Administration Complex, maximum debt service in any given year at 6o would REDEVELOPMENT COMMITTEE MEETING MINUTES JUNE 2, 199? PAGE 4 ----------------------- be approximately $345,000; at 7o it would be $385,000. For the Public Safe�y facility, Administration Complex, and Recreation facility, maximum debt service in any given year at 6o would be app�oximately $371,000; at 7% it would be over $400,000. For the Public Safety facilities and the Recreation facilities, maximum debt service in an.y given year at 6% would be approximately $241,000; at 7� it would be $271,000. These scenarios were not overlapping, but assumed the prajects to be done at one time. During ensuinq discussion of income figures from new construction for the Village which had appeared in the newspaper, Village Manager Bradford reported those figures had included Sterling House and Cliveden, and not Tequesta �aks. Co-Chair Mackail recommended that a projection be prepared of the cost to do all the projects at one time in order to show residents that it would be cheaper to do the projects all at once. Co-Chair Mackail estimated that using a figure of $110,000 for annual general aperations and doing all three projects at once, the Village would be $270,000 short without increasing ad valorem taxes. Village Manager Bradford also reminded the Committee that the utility tax could be increased another percent, which would provide $50,000-$60,000 annually. Finance Director Kascavelis explained that would require approximately .7 mil3s, or $70 increase for each homeowner in the Village. Discussion ensued. Village Manager Bradford commented that by constructing a new Village Hall that $25,000 annu.al rent would be saved and the Water Department would pay for a portion of the Village Hall. Ca-Chair Capretta expressed concern that the public would accept only the necessity for a Public Safety facility but would not see a need for the Village Hall. Co-Chair Mackail expressed the opinion that with the recent charette there was an opportunity for the Village Hall to be located d�wn�own. Mr. Ben.nett explained that if a delay was anticipated, a Treasury Department rule that requires 85% of maney borrowed to be spent within 3 years could come in.to play. Co-Chair Mackail commented that with issuance of bonds in. 1998, there would be 15 months in which to m.ake a decision, and there was a way to get people comrnitted within a reasonable period of time, and if no commitment was made then the Village would go to a backup plan. Co-Chair Capretta commer�ted that getting a cammitment REDEVELOPMENT C01�9.riITTEE MEETING MINUTES JUNE 2, I997 PAGE 5 was difficult, and commented that if the Village Hall was to be built downtown in connection with another objective established by the Village, then he believed the financing should be separated so that a decision could be made now to build a Public Safety building only. To keep the $5 million plan aliv� and allow time to see how realistic a Village Hall located downtown would be, Mr. Bennett explained that the Village woul.d need to cansult Bond counsel who wou.ld na't allow the Village to place themselves into a posi.tion to have a problem with the Treasury, and that agreements shotzld be in place by May af 1998. Village Manager Bradford commented that placing the Village Hall downtown would mean that $1-$2 million would need �o be added for l.and acquisition. Village Clerk Manganiello commented that the design for a Village Hall would take 11 months. Co-Chair Capretta commented that if the Village wished to participate in the downtown development, the option to place Village Hall downtown must be left open. Vil.lage Manager Bradford commented that he was leaning towards forgetting downtown as a Village Hall location, since he cou7.d not see it ever happening and explained that the 3ogistics of holding meetings in �the Recreation Center would be a nightmare for administration, and recreational pragrams would be affected. Chair Hansen expressed concern that the code violations in the present building needed to be complied with, to which Village Manager Bradford responded that as long as progress was being made there was no problem with ADA. Chair Hansen commented that with the increasing tax base, 50� to 75% of the cost would be taken care of, so that there were good reasons to consider doing all projects at once. Chair , Hansen suggested taking a close Iook at the proposed floor plan for Village Haii to see if any cost cuts coul.d be made without �educing needed space. Village Manager Bradford suggested that anather option would be to get a letter af credit set up and to go forward with Public Safety design, while looking in.to a downtown location and fine-tuning the Village Hall plan, so that hopefully before a year a commitment would be made and then bids for both Village Hall and Public Safety could be done at once time. Mr. Clark suggested that if other players were put on notice that there was a tizne limit for making a commitment that they might negotiate. Discussion ensued regarding a time Iimit for the downtown location, after which if no commitment was REDEVELOPMENT COMMITTEE MEETING MINUTES �7LTNE 2 , 1997 PAGE 6 received the Village would build on their present property; and a meeting place during construction. Tom Little cammented that the North County Ambulance building could be appropriate for Village meetings. Co-Chair Mackail responded that he had discussed the future of that building with Hart Ransdale and understood that Jupiter hospital's long-term plan for �that building was to convert it to sozne type of inedical facility. Ca-Chair Mackail explained that he expected to hear shortly from Mr. Ransdale regarding their committee's decision regarding possible Village use of that building. Co-Chair Mackail made a motion to approve that the Viilage Manager direot staff to proceed with obtaining a Letter of Credit in the amount of $1 million. Co-Chair Capretta seconded the motion. The vote on the motion was: Carl C. Hansen - for Joseph 1�T . Capretta - for Ron T. Mackail - for The motion was ther�fore passed and adopted. Co-Chair Capretta suggested that the entire plan be discussed at the June 12, 1997 Village Gouncil meeting to see whether other Councilmembers supported leaving open the option of locating a r�ew Village Hall downtown, and to allow the public to participate in discussion. Chair Hansen agreed. Chair Hansen requested an explanation about the proposal to pass a resolution to reimburse original expenditures. Village Manager Bradford explained there was an IRS rule that up-front costs incurred prior to issuance of bonds, such as Gee & Jenson`s architectural design contract, could be included in the bond amount if a Resolution were passed for that purpose, and suggested that the Committee make a motion of recommendation that be done at the next Village Council meeting. Chair Hansen called for discussion regarding repairs for the Recreation building. Chair Hansen commented that the Committeemembers had looked at the l�ecreation building and REDEVELOPMENT CONII�lITTEE IKEETING MINiTTES JUNE 2, 1997 PAGE 7 that Mr. Preston. had indicated that all of the needed work should be done. Village Manager Bradford commented that he had understood the Comm.ittee wished to only do minimal repairs to make �he facility operational, which would be lights, addition of an office, and repair of the bathrooms. Village Clerk Manganiello reviewed the repairs discussed at the last meeting which totaled approximately $54,000 without proceeding with items necessary for �IilZage Council meetings. Ms. Manganiello reminded the Cammittee that a request had been made that those repairs begin in August, 1997; and the proposal would be presented for approval at the June 12 Village Council meeting. In response to Chair Hansen, Ms. Manganiello explained that the construction figures were a few months o1,d but were conservative, and it would depend on the bids as to how much the figures would change. The only variable which had not been included was hazardous waste materials, for which the analysis would be $3,000 to $4,000. Removal costs would be the variable if any hazardous materials were found; $80,000 had been estimated. V. R�VIEW OF DRA,FT PUHLIC FACILITIES SPEECH Village Manager Bradford commented that since nothing had been finalized except to proceed with design of the Public Sa�ety facility, he did not know whether the speech was needed at this time. Co-Chair Mackail recommended the speech be held in abeyance and updated as progress was made. Village Clerk Man.ganiell.o commented that the information could be placed in the newsletter. Chair Hansen made comments on items in the speech: that Phase 1 had been moving into the United Bank Building and Phase 2 was the new garage; that Public Safety facilities was not a"wait and see" matter; and that the bonds to be issued to finance construction were 30-year revenue bonds. Co-Chair Capretta commented that the Mayar should use this speech when. asked to speak ta the Chamber of Commerce, and concentration should be on why the new facil.zties were needed, and the pub�ic made aware of the need, and asked to participate in design of the facade, etc. Co-Chair Capretta explained that he visualized the "dog and pony show" to include facts of REDEVELOPMEN� COMMITTEE MEETING MINUTES JUNE 2, 1997 PAGE 8 ----------------------- conditions the firemen were living in, the Police Department, etc. Co-Chair Capretta stressed the importance of everyone having the same facts when answering questions from the public and to conve�r the urgency of doin.g something. Although it had been known tor more than ten years that new facilities were needed, affordability had prevented proceeding with new facilities in the past, and now new developm.ents were in place to increase the tax base. Village Manaqer Bradford agreed that it had been known for the past ten years that new facilities were needed, that this building had been used for 32 years, and commented that for the last few years the Capretta Plan had been to stimulate development, and that by this time next year the tax base should reach the goal of $400,000,000. Co-Chair Capretta commented that if new facilities were not built that the present building would have to be renovated at a cost of approximately $1 million. and there would be no more space. Co-Chair Capretta commented that the public was not aware af the inadequacies of the present facilities. Chair Hansen commented that since the numbers did not look bad, it was not un.reasonable to implement the e�.tire plan, and he believed that by talking with people over the next 9 to 12 months they would be convinced also. Co-Chair Capretta commented that he was beginning to discuss the inadequacies of the present facilities at social gatherings ta learn what types of questions would be asked, and to let the Village Manager know those questions so that he could place the questions and answers in the speech. Chair Hanse-n commented that the numbers in the speech were very good, and suggested some portions of the speech which were lengthy be condensed. Co-Chair Mackail made a motion to pass a Resolution for reimbursement of expenses at the June 12, 1997 Village Counail meeting. Co-Chair Capretta seconded the motion. The vote an the motion was: Carl C . I�ansen - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted. REDEVELOPMENT COMMITTEE MEETING MINUTES JUNE 2, 1997 PAGE 9 ----------------------- VIII. ANY OTHER MATTERS There were no other matters to come before the Committee. VIII. ADJOURNMENT Co-Chair Mackail made a motion to adjourn the meeting. Co- Chair Capretta seconded the motion. The vote on the motion was: Carl C. Hansen - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted and the meeting was adjourned at 10:05 A.M. Respectfully submitted, y. ��� �.c��-ch_-�� _ .. �� :;, . �';�� . Betty Laur ��''��� Recording Secretary ATTEST: Q �-��.�---� Jo nn Manganie o Village Clerk DATE APPROVED: ���,i99� -