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HomeMy WebLinkAbout11/16/2011 - Minutes The Economic Development Authority of Roanoke County Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 Minutes Wednesday,November 16,2011, 9:00 A.M. Members Present Billy Branch, Chairman Greg Apostolou Paul Henkel Woody Windley Jill Loope, Secretary Treasurer . ' Recording Clerk, Glenna Ratcliffe Members Absent Steve Musselwhite,Vice-Chairman Kirtesh Patel Guest Rebecca Owens, Director of Finance • Brian Carter, Finance Manager The Economic Development Authority of Roanoke County, Virginia met this day at the Roanoke County Administration Center,this being their n gularly scheduled meeting. Call to order Mr. Branch called the meeting to order at 9:00 a.m. Minutes A motion was made by Paul Henkel seconded by Woody Wendel to approve the October 19, 2011 minutes as read. The motion carried by unanimous voice vote. Financial Report Rebecca Owens, Director of Finance, introduced Brian Carter, Finance Manager, and stated that he would be attending EDA meetings with her in the future. Ms. Owens then reviewed the financial report through October 31, 2011. She reported the equity in pooled cash to be $640,022. Ms. Owens stated the year end balances have been rolled and the audit is complete. She stated there had been little activity during the month of October. A motion was made by Paul Henkel, seconded by Greg Apostolou, to accept the financial report. The motion carried by unanimous voice vote. Page 2 November 16,2011 Economic Development Authority Minutes NEW BUSINESS Request to adopt a Resolution Authorizing an Amendment to the 2001A lease Revenue Bonds Rebecca Owens, Director of Finance, reviewed the request before the Board to authorize an amendment to the 2001A Lease Revenue Bonds. She stated each year the County works with financial advisors Morgan Keegan to review all debt issuances for potential refunding for savings to the County. With the current market conditions, the County has the opportunity to refinance the existing 2001A Lease Revenue Bonds to a lower interest rate of not to exceed 3%. The proposed rate is 2.63% which will save the County approximately $54,000, net of issuance costs. Lease Revenue Bonds were issued on May 1, 2001 in the amount of$2,650,000 and at that time the County leased three of the five floors of the Salem Bank and Trust building for Social Services, so the financing was 60% non-taxable and 40% taxable. The 2001A Lease Revenue Bonds are paid with net revenues of the building. No County appropriation of funds is required. In June 2008, the taxable portion of the Lease Revenue Bond in the amount of$1,060,000 was paid in full. The remaining balance of the non-taxable bonds at the time of the refinance will be • $977,479.54. The proposed financing will keep the interest and principal payment the same and shorten the life of the amortization by approximately 2 '/2 months, resulting in a net savings to the County of approximately$54,000. After brief discussion, Woody Windley made a motion to approve the resolution authorizing an amendment to the 2001A Lease Revenue Bonds and authorize the Chair or Vice-Chair to execute the First Amendment to the Lease Revenue Bond and the Modification Agreement. The motion was seconded by Paul Henkel. The motion carried by the following recorded vote: Ayes: Woody Windley, Paul Henkel, Greg Apostolou, Bill Branch Nays: None Absent: Steve Musselwhite, Kirtesh Patel At this time, Ms. Loope addressed the Board regarding the standard procedure of the Authority to request a financing application and review/processing fee. An application was not completed or fee attached as the EDA does not presently have outside legal counsel to review documents. A motion was made by Woody Windley, seconded by Greg Apostolou to accept the bond refinance request without an application or fee since no outside counsel is paid to handle the transaction for the Board. The motion carried by unanimous voice vote. `41 Page 3 November 16,2011 Economic Development Authority Minutes BRIEFINGS New EDA Appointments Ms. Loope apprised the Board of the recent appointment of Kirtesh Patel to the Economic Development Authority. Mr. Patel will replace Carole Brockman who declined reappointment citing health issues. Mr. Patel resides in the Catawba Magisterial District. Also, Ms. Loope stated that Greg Apostolou was reappointed for another four-year term. The Board still has one vacancy. She stated the Board of Supervisors met in closed session; however, no appointment has been made at this time. REPORTS AND INQUIRIES OF THE BOARD Paul Mahoney apprised the Board that the developer of South Peak requested the County Administrator to place on the Board's agenda a resolution consenting of the issuance of the CDA bonds. Before the Board would approve the issuance of the CDA bonds, it must have in place the special assessment ordinance; therefore, this request was on the BOS Agenda November 15, 2011. These bonds are intended to pay the costs of public infrastructure improvements of approximately $11 million. The BOS will vote on December 13 to adopt resolution to issuance of bonds and if adopted, the CDA will anticipate issuing bonds in January for $7 million as it is anticipated the bonds will be broken into two phases. The debt service on these bonds will be paid first from incremental tax revenues generated by new development in the CDA, available revenues in the surplus fund, and finally from revenues derived from special assessments. ADJOURNMENT The meeting was adjourned at 9:30 a.m. NEXT MEETING The next regularly scheduled meeting is December 21, 2011 at 9:00 a.m. Respectfully submitted, Ji ope Secretary-Treasurer