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HomeMy WebLinkAbout1992-05-06 EURA MINUTES. ... ENGLEWOOD URBAN RENEW AL AUTHORITY MAY 6, 1992 I. CALL TO ORDER. The regular meeting of the Englewood Urban Renewal Authority was called to order by Vice-Chair- person Erica Byrne in Conference Room A of the Englewood City Hall. Members Present: Minnick, Byrne, Waggoner, Smith Stitt, Acting Executive Director/Executive Secretary Members Absent: Whatton , Schmidt , Totton Also Present: Linda Martin, Deputy City Manager/ Acting Director of Community Develop- ment Ms. Byrne declared a quorum present. II. APPROVAL OF MINUTES. April 1 , 1992 Ms. Byrne stated that the Minutes of April 1, 1992 were to be considered for approval. Minnick moved: Waggoner seconded: The Minutes of April 1, 1992 were approved as written. AYES: NAYS: ABSENT: ABSTAIN: Byrne, Waggoner, Smith, Minnick None Schmidt, Totton, Whatton None The motion carried. III. REVENUE REPORT Mr. Stitt reviewed the latest revenue report, pointing out that sales tax revenues year to date are $401,365.18; property tax revenues year to date are $214,845.08. Sales tax revenues are up 18.2 1 % over last year at this time, and property tax revenues are up 46.77% from last year. Mr. Stitt dis - cussed the projections for total revenues, and suggested that $2.2 million will probably be a closer figure than the $2.4 million indicated. Brief discussion ensued. Ms. Schmidt entered the meeting and took her chair with members of the Authority. Mr. Stitt stated that revenues are wired to the Trustee (Central Bank of Denver), and they will dis- tribute the funds to the bondholders. IV. LEGAL COUNSEL BILL. Mr. Stitt stated that Ms. Martin had expressed concern on some of the line items of Mr. Paul Benedetti' s bill submitted for payment on March 20th. The Authority has no independent source of funds, and must rely on the City of Englewood to pay all bills incurred by the Authority in the con- duct of their day-to-day business. Mr. Stitt stated that he spoke with Mr. Benedetti regarding Ms. Martin's concerns; in response, Mr. Benedetti submitted a letter dated April 9, 1992 explaining his billing, and why he had proceeded on the issue of the legislation to extend the term of bond issues. One concern the Authority must be aware of, is that if bondholders perceive that the City is 1 interfering in EURA matters, they could get the impression that the City government is acting rather than the EURA, which could damage the "arms length" the City has tried to maintain from Authority activities. Ms. Byrne expressed concern that the Authority had not pre-authorized Mr. Benedetti to work on the proposed legislation. Mr. Stitt referred to Mr. Benedetti's letter, and stated that it is the opinion of Mr. Benedetti that had not he been asked to work on the process by the bondholders, the legislation would have been introduced in this session. He is of the opinion that his work on the proposed legis- lation did deter legislative action that might have been detrimental to the Authority, as well as the City. Brief discussion ensued. Mr. Stitt then discussed the Cooperative Agreement which was signed a number of years ago between the Authority and the City, whereby the C i ty agreed to provide staff and limited other services to the Authority. If there are changes to this Agreement, they must be reported to the Trustee. Ms. Schmidt asked why the City Attorney had not been involved in this matter. In her opinion, the extension of the terms of the bonds would affect the City. Mr. Stitt pointed out that if the legislation, in whatever form, is enacted it will not be retroactive. The Downtown Redevelopment Plan will have to be amended (City Council will have to approve the amendment) for it to apply to the current hold- ers of the EURA Tax Increment Bonds. It would be a statutory change, and the question arises as to which would prevail --the new law, or the Indenture of Trust on the existing bond issue. Ms. Schmidt reiterated her opinion that it would behoove the City to act on this issue, not the EURA legal counsel. Ms. Martin pointed out that Mr. Benedetti is an acknowledged authority in Urban Renewal law in the State of Colorado, and the bondholders contacted him get his expertise on the issue. City Attorney DeWitt was not contacted regarding the proposed legislation. Ms. Martin stated that inasmuch as the proposed legislation was not introduced this session, that a task force will be working with Senator Powers, Senator Blickensderfer, and others to discuss the issue and to try to arrive at a resolution that is comfortable to bondholders, the Authority, the City, and other taxing entities that will be affected. Additional discussion ensued. Mr. Stitt stated that the bill from Mr. Benedetti has been paid; he asked the Authority to consider a motion to ratify the payment of this bill in light of the concerns that have been raised. Ms. Martin stated that when the EURA bills are collected at the end of the year for transfer of monies into the EURA account, City Council needs to understand the exact nature of the bills they are pay- ing. Ms. Martin stated that there are different interpretations on what has ensued, and it is her opin- ion that City Council could question what they were paying for. Ms. Martin reiterated that Mr. Benedetti is one of the top two attorneys in the state on Urban Renewal law, but felt that the work he was doing was more "global" than just for the EURA. If Mr. Benedetti will be involved on the work toward new legislation later this summer, Ms. Martin suggested that the Authority should establish a status for this future work and the reimbursement therefor. Mr. Smith expressed the opinion that if Mr. Benedetti succeeded in delaying poorly written legislation that could have had an adverse effect on the Authority and the bond issue, then the bill is worth it. Ms. Byrne stated that the line itemization appear that some of the work was done on behalf of the bondholders, but some also was of benefit to the City. Discussion on the extension of the term of the bonds ensued. Minnick moved: Smith seconded: The Englewood Urban Renewal Authority reaffirm payment of the bill submit- ted by Paul Benedetti dated March 20, 1992. AYES: NAYS: Waggoner, Smith, Schmidt, Minnick Byrne 2 ABSENT: Whatton, Totton ABSTAIN: None The motion carried. Minnick moved: Smith seconded: Communications between the Authority and Legal Counsel Benedetti be open to keep a check and balance between work that is done this summer on the AYES: NAYS: ABSENT: ABSTAIN: proposed legislation for bond time extension. Waggoner, Smith, Schmidt, Minnick, Byrne None Totton, Whatton None The motion carried. Mr. Smith asked how long the Authority would have to work with the Trustee. Mr. Stitt stated that as long as Central Bank does not resign the position of Trusteeship, the Authority will have to work with them. He pointed out that the role played by the Trustee increased when the bonds went into de- fault. V. DIRECTOR'S CHOICE. Mr. Stitt raised the issue of whether the Authority wants to have meals served at their meetings. Mr. Stitt pointed out that the Authority must rel y on the City for payment of our bills, and the majority of the recent meetings of the Authority have not been of long duration. Ms. Schmidt stated that she has never been comfortable having meals served because ultimately the taxpayer is footing the bill. Ms. Byrne asked what type of meals the City Council is now being served, and if that food service has been reduced, the Authority could cut back the same percentage. Mr. Smith pointed out that the Authority is a volunteer board, and he did not feel it was out of line to offer the members food; he pointed out that the members do not receive a stipend for their service on the Authority. Mr. Waggoner stated that the serving of food could depend on the time the meetings begin, and the time they adjourn. Mr. Minnick suggested that possibly the time of the meetings could be delayed to 7 P.M. or 7:30 P. M. to g ive staff and members an opportunity to eat prior to the meeting. Discussion ensued. Mr. Stitt pointed out that the majority of the meetings recently have been only 1 to 1.5 hours in length, and that foregoing the serving of meals is a symbolic gesture the Authority can make to let Council know they are aware of the need to cut expenses. Schmidt moved: Minnick seconded: The Authority meetings shall be scheduled to begin at 5:30 P. M., and to ad- journ at 6:30 P.M.; no meals shall be served. AYES: NAYS: ABSENT: ABSTAIN: Schmidt, Minnick, Waggoner Smith, Byrne Whatton, Totton None The motion carried. Mr. Waggoner suggested that when the 1993 "budget" is prepared, that some funding be included for meals in the event some of the meetings are anticipated to be greater than one hour in length. Mr. Stitt further discussed the Cooperative Agreement between the Authority and the City of Engle- wood; he pointed out that there is a statement in this Agreement to the effect that whatever the City does cannot be termed to be acting on behalf of the EURA. The services that are now being provided 3 to the EURA, over and above covering the administrative costs of the Authority, is the provision of staff services (himself and the recording secretary) and office space. If this Agreement were to be changed, the Trustee would have to be notified. Brief discussion ensued. VI. COMMISSIONER'S CHOICE Nothing was brought up for discussion. Ms. Byrne declared the meeting adjourned at 6:35 P. M. 4