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HomeMy WebLinkAbout1991-04-03 EURA MINUTESI' • • • ENGLEWOOD URBAN RENEWAL AUTHORITY April 3, 1991 I. CALL TO ORDER. The regular meeting of the Englewood Urban Renewal Authority was called to order by Chairman Tatton at 5:40 P.M. in Conference Room A of the Englewood City Hall. Members present: Byrne, Gease, Minnick, Schmidt, Tatton, Whatton, Bullock Richard S. Wanush, Executive Director/Executive Secretary Members absent: Alternate Member Daugherty Also present: Legal Counsel Paul C. Benedetti Harold J. Stitt, Staff Mr. Tatton welcomed new members Deryl Gease and Joan Whatton to the Authority. II. APPROVAL OF MINUTES February 6, 1991 Chairman Tatton stated the Minutes of February 6, 1991 were to be considered for approval. Schmidt moved: Minnick seconded: The Minutes of February 6, 1991 be approved as written. The motion carried. III. NOTICE/DISCLOSURE TO BOND HOLDERS Mr. Wanush stated that per directives from the last Authority meeting, Mr. Benedetti has prepared a draft disclosure statement that will be sent to all bondholders of record. Copies of the draft statement have been sent to the Trustee for their comments, and the Authority is asked to make any comments or suggestions regarding the draft statement. Mr. Benedetti discussed recent legislative action which will require Urban Renewal Authorities and special districts to file financial statements each year. Mr. Benedetti also discussed recommendations that are being put forth by Government Finance Officers Association, one of which pertains to disclo- sure statements and information that should be contained in such statements. Mr. Benedetti stated that there is a 1 ot of pressure to require disclosure statements on a nation-wide basis. Mr. Benedetti stated that he is of the opinion that the proposed statement should be expanded upon to deal with what will happen following default, and that possibly the statement should be brought back to the Authority for fur- ther consideration prior to mailing. Mr. Benedetti stated that according to the Indenture Statement, there must be a Trustee for the bonds. He stated that he is not of the opinion that the current Trustee (Central Bank of Den- ver) will resign that designation when the default occurs, and that the staff -1 - of the Bank has indicated a willingness to work with the Authority to assure that there wil 1 be no further disagreements. The Trustee wi 11 exercise its 'I right under the Indenture in that they will receive payment for their fees and • services from the revenues used for bond payments; the Trustee will also prob- ably require that all taxing bodies (County, etc.) send the revenues directly to the Trustee rather than first transmitting it to the City. Mr. Benedetti stated that this information will have to be transmitted to the bondholders. Mr. Benedetti stated that he and Mr. Wanush have asked the Trustee to disclose what they will do upon default. Mr. Benedetti stated that the Trustee could choose to pay on the bonds as they have been doing, or they may choose to ac- celerate the bonds. Mr. Benedetti stated that the bondholders may take over the administration of the bonds, but this could cost them more money. Mr . Benedetti stated that it is his opinion the EURA would be in the role of monitor. Mr. Tatton asked the amount of the fees the Trustee could charge. Mr. Benedetti stated that the Indenture states "reasonable" fees. Mr. Bullock asked if it would be appropriate to call another meeting of bondholders; he stated that the bondholders want to be kept informed, and that it is the duty of the Authority to keep them informed. He stated that there are lot of misconceptions circulating , and suggested the Authority should hold periodic meetings with the bondholders. Discussion ensued. Mr. Benedetti stated that it is a policy decision of the Authority whether to hold addition- al meetings with the bondholders. Mr. Benedetti did recommend that the dis- closure statement be mailed prior to the meeting. Mr. Wanush stated that the only problem he could foresee with a meeting with bondholders might be ques- tions pertaining to the Trustee, and at this point the Authority doesn't know • what the Trustee will do. Mr . Benedetti suggested that if such a meeting is held, the Trustee could be invited to the meeting to state what they will do. Ms. Byrne suggested that the Authority should meet with the Trustee before meeting with the bondholders, and maybe include a statement from the Trustee in the disclosure statement . Mr. Wanush stated that he thinks the bondholders are well informed, and that a second meeting with the bondholders will not, generally, bring in bondholders that did not attend the initial meeting. Ms. Schmidt supported the meeting wi t _h the Trustee prior to meeting with bondholders. Mr. Minnick also supported meeting with the Trustee prior to any meeting with bondholders . Further discussion ensued . Bullock moved: Minnick seconded: The EURA requests a meeting with Central Bank of Denver, Trustee, and wi 11 then schedule a subsequent meeting with the bondholders. AYES: NAYS: ABSENT: ABSTAIN: Minnick, None None None Schmidt, Tatton, Bullock, Byrne, Gease , Whatton The motion carried . - 2 - • • • • Mr. Tatton questioned the last statement on Page 2 of the Informational State- ment. Mr. Benedetti suggested that the words "that would impact these funds" be added. This met with the approval of the Authority . Mr. Wanush asked for approval or disapproval of the disclosure statement for the record. Bullock moved: Minnick seconded: The EURA approve the disclosure statement; this statement, after further revision as discussed this evening, will be submitted for final approval of the membership prior to mailing to bondholders. AYES: NAYS: ABSENT: ABSTAIN: Schmidt, None None None Tatton, Bullock, Byrne, Gease, Minnick, Whatton The motion carried. IV. SETTLEMENT WITH ARAPAHOE COUNTY ASSESSOR Mr. Wanush reviewed the settlement, and discussed the figures cited in the report. Mr. Wanush stated Mr. Benedetti has indicated he wants to check to determine that there is, in fact, no way to recoup revenues that were lost as a result of the previous County Assessor's apportionment of abatements. Mr. Benedetti pointed out that the increased incremental value to $11.BM will significantly increase revenues to the bondholders. Mr. Benedetti stated that County Assessor Reeves and Mr. Phil Effland have been most cooperative and helpful in resolving this issue, and the County Attorney's Office has also been of assistance. Mr. Benedetti indicated that the Trustee has raised the question regarding recouping lost revenues, and he needs to check this point with County Attorney Vanna. Mr. Bullock suggested that a letter be prepared to Assessor Reeves and Mr. Effland expressing the appreciation of the Authority for their assistance in resolving this matter, and that the letter be signed by all Authority members. Mr. Wanush stated that he supported this suggestion; the letter will be pre- pared. Mr. Benedetti stated that he also supported Mr. Bullock's suggestion. V. TRUSTEE COURT COSTS AND FEES Copies of correspondence from Fairfield and Woods, attorneys for Central Bank of Denver, to Mr. Benedetti and his response to that correspondence was in- cluded in the packet. Mr. Benedetti stated that he and Mr. Wanush had met with the attorneys for and representatives of the Bank, and the correspondence is a result of that meeting. Mr. Benedetti stated that he conveyed to the Bank and their legal staff the consensus of the Authority that the Bank not be allowed to recover legal costs for the December lawsuit at the expense of the bondholders. Mr. Benedetti stated that, in his opinion, the figures cited in the correspondence from the Bank 's attorneys, have been reduced considerably. Mr. Benedetti stated that he had previously filed with the Court the Objection to Trustee's Request for Fees, Charges and Expenses. He does not know when this matter will come up for argument before the Court. Mr. Benedetti stated that if the Authority wants to offer a settlement figure, he will do so. - 3 - Discussion ensued. Mr. Benedetti stated in his op1n1on, the suit filed by the Trustee was without merit, but it will be up to the Court to determine whether the suit was "frivolous". Mr. Benedetti stated that our argument is that the • Trustee was not acting on behalf of the bondholders when the suit was filed. Mr. Bullock asked if there was a possibility the Authority could ask that the Trustee pay the legal fees incurred by the Authority as a result of their suit, and possibly negotiate that each party would stand the cost of their own legal fees. Mr. Benedetti pointed out there would be additional cost incurred to the Authority in pursuing this route, but it could be done. Mr. Benedetti stated that in his opinion, the Authority has a good basis for opposing pay- ment of fees to the Trustee, but would recommend against the Authority asking for reimbursement for our legal fees from the Trustee. Discussion ensued. Mr. Tatton asked if bondholders were aware of the Trustee's request. Mr. Benedetti stated that a number of the bondholders were present at the Hearing, and that everyone opposed granting the legal fees to the Trustee from revenues due the bondholders. Further discussion ensued. Mr. Totton requested that formal direction be given Mr. Benedetti on this matter. Schmidt moved: Bullock seconded: The EURA ratify directions given by Executive Director Wanush to Legal Council Benedetti in opposing payment of legal fees to the Trustee, and that determination in the matter of payment be left to the discretion of the Court. AYES: NAYS: ABSENT: ABSTAIN: Tatton, None None None Bullock, Byrne, Minnick, Schmidt, Whatton, Gease The motion carried. VI. TROLLEY SQUARE LIQUOR LICENSE Mr. Wanush stated that on April 17th, there will be a Public Hearing before the Liquor License Board regarding an application for a liquor store to be located in Trolley Square. Mr. Wanush asked whether the Authority would want to go on record in support of the additional retail activity in Trolley Square, or ask that he attend to speak in favor of the additional retail ac- tivity. Discussion ensued. Ms. Schmidt expressed opposition to the proposed retail use, and Mr. Bullock stated that he did not feel it would be appropri- ate for the Authority to issue a statement in support of the proposal . Ms. Byrne expressed her support of the issue, and indicated that she would appear in support of the use as an individual. Further discussion ensued. Schmidt moved: Whatton seconded: The EURA take no stand on the matter of the liquor license request for Trolley Square Liquors. AYES: NAYS: ABSENT: ABSTAIN: Bullock, Schmidt, Tatton, Whatton Byrne, Minnick, Gease None None -4 - • • • • • The motion carried. VII. FINANCIAL REPORT Mr. Stitt stated that sales tax figures collected in April have not been posted to the City books as of this date. Mr. Stitt presented his latest re- port, dated March 14, 1991, which indicates that collections are up over the same period last year. Year-to-date collections for property tax are $85,898.13, and year -to-date sales tax collections are $288,732.26. If the rate of collections continue, staff projects there will be approximately $800,000+ available for the June interest payment on the bonds. This amount will be insufficient to make the full interest payment. Mr. Stitt pointed out that the "00" figure noted in February indicated that the base level for fiscal year 1991 had not been reached at that point. Mr. Wanush stated that this financial report is mailed to the bond under- writers and the trustee on a monthly basis. VIII. 1990 BUDGET Amendment Mr. Wanush stated that the budget for fiscal year 1990 needs to be amended to reflect actual revenues and expenditures. The revenues show moneys that were transferred in to pay the settlement to CleveTrust/First National Bank. These figures are comp il ed by the City Finance Department and are part of the yearly audit. Minnick moved: Bullock seconded: The EURA adopt and approve Resolution #3, Series of 1991, A RESOLUTION OF THE ENGLEWOOD URBAN RENEWAL AUTHORITY AMEND- ING THE 1990 BUDGET. AYES: NAYS: ABSENT: ABSTAIN: Byrne, Minnick, Schmidt, Totton, Bullock, Gease, Whatton None None None The motion carried. IX. GENERAL INFORMATION Mr. Wanush stated that the statement from the legal firm of Dietze, Davis & Porter was included for informational purposes, only. There was no further business to come before the Authority, and the meeting was declared adjourned at 6:40 P.M . -5 -