Loading...
HomeMy WebLinkAbout1999-03-03 EURA MINUTES• • • ENGLEWOOD URBAN RENEW AL AUTHORITY March 3, 1999 I. CALL TO ORDER The Annual Meeting of the Englewood Urban Renewal Authority was called to order at 5:30 P.M . in the Community Room of Englewood City Hall, Vice-Chair Graebner presiding. Present: Roth, Weddle, Lindsay, Graebner Gryglewicz, Executive Director/Executive Secretary Absent: Garrett, Knuppertz II. APPROVAL OF MINUTES July 15, 1998 Chair Graebner stated that the Minutes of July 15, 1998 were to be considered for approval. Roth moved : Weddle seconded: The Minutes of July 15, 1998 be approved as written. AYES: NAYS: Graebner, Lindsay, Roth, Weddle None ABSTAIN: None ABSENT: Garrett, Knuppertz The motion carried. III. NEW BUSINESS A. 1999 Operating Budget Mr. Gryglewicz discussed the proposed 1999 Operating Budget in the amount of $12,465. Mr. Gryglewicz, in response to a question from Mr. Graebner, stated that these funds are from the $50,000 transferred to the Authority from the City of Englewood in July of 1998 . The transfer of funds was necessary to pay legal fees incurred by the Authority to fight the lawsuit filed by bond holders. Weddle moved: Roth seconded: The Operating Budget for 1999, in the amount of $12 ,465, be approved as presented . 1 • • • AYES: NAYS: ABSTAIN: ABSENT: Lindsay, Roth, Weddle, Graebner None None Garrett, Knuppertz The motion carried. III. B. Debt Service Budget Mr. Gryglewicz discussed the Debt Service Budget. He pointed out that when the Authority defaulted on the Bonds in June, 1991, all bonds were accelerated. Since that time, the debt of the Authority has risen each year because interest is compounding. Mr. Gryglewicz stated that the debt service on the bonds was structured to expire in 2005; however, the tax increment can be extended to 2007 to comply with State Statutes in effect at the time bonds were issued. Mr. Graebner inquired about the status of the lawsuit against the Authority and the City. Mr. Gryglewicz stated that oral arguments are set for March 18, 1999; the suit is seeking to extend the tax increment another 25 years, or until the bonds are paid. Mr. Gryglewicz stated that all monies collected over base amounts are given to the trustee for payment to bondholders. Ms. Weddle asked what will happen to the debt after 2007. Mr. Gryglewicz stated that he does not know the answer. Certainly, funding to repay the debt will expire after 2007, but the debt itself will not go away. It is not a debt of the City of Englewood, but of the Authority . He stated that there is a question whether the Authority can declare bankruptcy. Mr. Grygle- wicz agreed that there is a need to explore what will happen to the debt after 2007 with legal counsel and financial consultants. Roth moved: Weddle seconded: The Debt Service Budget for 1999 be approved as presented. AYES: NAYS: ABSTAIN: ABSENT: Lindsay, Roth, Weddle, Graebner None None Garrett, Knuppertz The motion carried. C. Revenue Report Mr. Gryglewicz briefly reviewed the Revenue Report, noting that property tax revenues in 1998 were down from 1997; there was a small increase in the sales tax revenues over what was collected in 1997. The Revenue Report was accepted as presented . 2 IV. OLD BUSINESS • A. Ratify Telephone Poll • • Mr . Gryglewicz stated that he conducted the telephone poll to gain approval of the Authority to accept the $50,000 transfer from the City of Englewood. According to the Tri-Party Agree- ment , the City is to assist in payment of legal expenses ; the $50,000 transfer was to pay for the legal expenses regarding the lawsuit of the trustee. Weddle moved : Roth seconded : The Telephone Poll accepting transfer of $50,000 from the City of Englewood to the Authority is hereby ratified. AYES : NAYS: Lindsay, Roth, Weddle, Graebner None ABSTAIN: None ABSENT: Garrett, Knuppertz The motion carried. V. ELECTION OF OFFICERS Chair Mr. Graebner stated that he believes his term expires in 2000, and he will not apply for reappointment ; therefore , he said he would not stand for either of the officer positions. He asked for nominations for the position of Chair . Lindsay nominated Ms. Weddle as Chair. Roth moved: Graebner seconded: The nominations be closed, and Ms. Weddle be elected as Chair by ac- clamation . The motion carried . Mr . Graebner then asked for nominations for position of Vice Chair . Lindsay nominated Don Roth as Vice Chair. Weddle moved : Lindsay seconded: The nominations be closed , and Mr. Roth elected Vice Chair by accla- mation . The motion carried . 3 • • • There was no further business brought before the Authority ; the meeting was declared ad- journed . Gertrude G. Welty, Recording Secretary f:\dept\nbd\group\boards\ura\min99 \eura 3-99.doc .----- 4