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HomeMy WebLinkAbout1991-12-04 EURA MINUTES• • • ENGLEWOOD URBAN RENEWAL AUTHORITY December 4, 1991 I. CALL TO ORDER. The regular meeting of the Englewood Urban Renewal Authority was called to order at 5:30 P. M. by Chairman James Totten in Conference Room A of Englewood City Hall. Members present: Byrne, Totten, Waggoner, Whatton Wanush, Executive Director/Executive Secretary Members absent: Minnick, Schmidt Chairman Totten welcomed Councilman Kells Waggoner to the meeting; Mr. Wag- goner has been designated as the City Council representative on the EURA, and Councilman Bullock has resigned as a member of the Authority. II. APPROVAL OF MINUTES August 7, 1991 Chairman Totten stated that the Minutes of August 7, 1991 were to be con- sidered for approval. Chairman Totten also noted that there were "notes" from the session of October 2, 1991. Executive Director Wanush stated that the "notes" were included for information only, and inasmuch as there was no for- mal business conducted because of lack of quorum, these should not be con- sidered for approval. Byrne moved: Whatton seconded: The Minutes of August 7, 1991 be approved as written. The motion carried. III. REVENUE REPORT Executive Director Wanush distributed copies of the latest revenue report, dated December 2, 1991. Property tax revenues posted year-to-date are in the amount of $547,263.62; sales tax revenues posted year-to-date are in the amount of $1,411,371 .03. Comparisons to revenues for 1990 at this time indi- cate 1991 sales tax revenues have increased by 2.63%, and property tax revenues have increased by 7 .17%. Mr. Wanush pointed out that the District has realized this level of increment despite the fact that Children's Palace was vacant for a t i me , and the former Buyer's Club building has not been pro- viding any revenue . Best Buys has now leased the former Children's Palace building and has been open approximately one month; Office Depot is leasing the former Buyer's Club structure, and is expected to open shortly after the first of the year. Mr. Wanush stated that the Authority also anticipates an increase in the property tax revenues since the dispute on apportionment of abatements has been resolved with the Arapahoe County Assessor's Office . Mr . Wanush stated that a payment was made by the Trustee on December 2, 1991, in the amount of $911, 360 to bondholders; this is approximately 45% of the - 1 - payment that was due. The Trustee did hold $20,000 in reserve to cover their expenses; this is down from the $100,000 they held in reserve on the June payment. Ms. Schmidt entered the meeting and took her seat with the members of the Authority. Ms. Byrne asked if staff anticipated a number of calls regarding the payment. Mr. Wanush stated that we will receive some calls, but a number of them will have to be referred to the Trustee. Payout on the bonds --principal vs. interest --was discussed. Mr. Wanush stated that he did not know how the Trustee was paying --totally on interest due, or whether some principal was also being paid down. Mr. Wanush pointed out that the term of the payments will go through 2007, and there are many factors which may change in this time to affect the issue. Mr. Totten asked if there were any additional questions regarding the revenue report. Councilman Bullock entered the meeting. IV. ACCEPTANCE OF 1990 AUDIT Executive Director Wanush summarized his discussions with the auditors on revisions in wording to the 1990 Audit. Paul Benedetti, legal counsel for the Authority, also discussed the requested revisions with the auditors, and they have refused to revise the wording of the cover letter contained in the audit. Of particular concern is the phrase "going concern" contained in the last paragraph. The auditors did agree to revise Note 5 to accurately reflect the action of the Authority in regard to the default on the bonds. Mr. Wanush stated that the Authority needs to accept the 1990 Audit, as re- vised. This financial statement will then be sent to all bondholders of record, and he will include with the Audit an updated disclosure statement of the financial status of the Authority, and an explanation of the term "going concern." Byrne moved: Schmidt seconded: The 1990 Audit, as revised, be accepted by the Englewood Urban Renewal Authority. AYES: Schmidt, Totten, Waggoner, Whatton, Byrne NAYS: None ABSENT: Minnick ABSTAIN: None The motion carried. v. PUBLIC FORUM No one addressed the Authority under Public Forum. - 2 - £2-c;f cd-cl Cli~l 3/'f 12 lc~ • • • • • • VI. DIRECTOR'S CHOICE Executive Director Wanush questioned the need to have regular meetings of the Authority at this point in time. If there is something that arises that needs formal consideration/action of the Authority, certainly a meeting will be called. The Authority is obligated to meet February 5, 1992 because the meet- ing in February is the "annual meeting". Mr. Wanush stated the Authority may be called for a meeting in January to consider disclosure statements he will prepare for mailing to bondholders, but this is uncertain at this time. Mr. Wanush stated that he has briefly discussed this proposal with Chairman Tot- ten, and is asking for the opinion of the Authority on the need for regular meetings. Ms. Schmidt indicated she saw no need for regular meetings, as did Ms. Whatton. Councilman Bullock asked that the Authority continue to scrutinize the actions of the Trustee closely. Mr. Wanush agreed that staff and Authority do need to closely monitor the Trustee's actions; while he was not sure what action the Authority could take, the Authority should be on record if problems arise with the administration of payments. Mr. Tatton pointed out that bondholders also need to monitor the Trustee and to take action if they feel the Trustee is in error. Mr. Tatton asked about the 1992 Budget for the Authority. Mr. Wanush reported that there had been no new development s, and it is in the hands of City Coun- cil. Mr. Wanush pointed out that there are very minimal expenses being in- curred by the Authority at the present time; however, should something unfore- seen occur requiring legal counsel, this could present a problem with lack of funds. Discussion ensued. VII. COMMISSIONER'S CHOICE Councilman Bullock presented his formal letter of resignation from the Au- thority to Chairman Tatton. Mr. Bullock stated that had enjoyed his time on the Authority, and appreciated the work that the Authority has done. Mr. Bullock stated that he knew Mr. Waggoner would be a very good member of the Authority. Mr. Tatton accepted Mr. Bullock's resignation, and thanked Mr. Bullock for his service. Mr. Totten commented that he is of the opinion that the EURA is still a useful tool for the City Council regardless of the default on the bonds. There was no further business to come before the Authority, and the meeting was adjourned at 5:50 P. M . Recording Secretary - 3 -