HomeMy WebLinkAbout02/01/2001
MINUTES
THE COLONY COMMUNITY DEVELOPMENT CORPORATION
REGULAR SESSION
JANUARY 18TH, 2001
Present: Susan King - President
Bunker Hill - Member
Delmer Pinson - Member
Sue Walden - Secretary
John Sanders - Member
Absent: Vicki Briggs - Treasurer
Richard Boyer - Vice President
Staff: Pam Nelson
Sam Fitzgerald
Kathy Neal
Guests: Tony Johnston - Director of Finance
LeRoy Grawunder - Bond Counselor
1. STAFF REPORTS -
The board reviewed the staff reports. The TexPool account is doing very well.
REPORT BY 4A BOARD EX-OFFICIO -
Sue reported that there was discussion regarding changing advertising campaigns in
respect to cost and placement. They have placed an ad in the Chamber Directory. The
dates for the annual Economic Forum and Allies Day have not been determined yet. John
Gordon has resigned from the board. He will reside at the next meeting and until a new
President is elected. They did not elect officers at the last meeting; there were not
enough members present.
2. APPROVAL OF MINUTES OF NOVEMBER 9TH, DECEMBER 7TH 2000 AND
JANUARY 11TH, 2001-
John made a motion to approve the minutes of November 9"', December 7"' 2000 and
January 11'h, 2001. Delmer seconded the motion. The motion carried.
3. ELECTION OF OFFICERS -
Sue nominated Vicki to be President. Vicki did send her verbal consent that if nominated
she would accept the position. She is absent due to sickness. Bunker seconded the
nomination. The nomination carried. Susan said Richard would accept the position of
Vice President if nominated. Bunker nominated Richard to be Vice President. John
seconded the nomination. The nomination carried. John nominated Sue to be Treasurer.
Bunker seconded the nomination. The nomination carried. John nominated Delmer to be
Secretary. Sue seconded the nomination. The nomination carried.
4. RECEIVE PRESENTATION FROM TONY JOHNSTON, FINANCE DIRECTOR
REGARDING ISSUANCE OF CERTIFICATES OF OBLIGATION FOR DEVELOPMENT
OF THE COMMUNITY COMPLEX.
Tony Johnston, City Finance Director, and LeRoy Grawunder, Bond Counselor for the City, were
present to discuss Certificates of Obligation.
Tony gave the board a report showing his 5-year projections of expenditures and revenues to illustrate
how the 4B budget will be affected by issuing bonds. Home Depot and Walmart are in these projecti(
TexPool is doing very well. We are seeing a slow down on sales tax right now.
In the expenditure section, Tony did not include any staff positions. He thinks 4B should be utilized
much as possible for infrastructure and normal operations handle staff decisions. In expenditures spec
projects, 4B gave the library $100,000, paid for the Park Master Plan, and $131,000 for existing park
improvements - ADA sidewalks and some irrigation. We are working with JNC to make Memorial I
4-lanes. This will help the complex. If we can't do 4-lanes, we'll do 2-lanes which is our responsibil
It would cost $2.7 million to build a 4-lane road, put water and sewer lines underneath, a traffic light
Blair Oaks & Memorial, and drainage improvements. We'll see if the water and sewer fund can help
finance this.
Tony has met with Pam and Tom Terrell, Economic Development Director, to discuss how much of a
impact 4B and 4A could take on Memorial Dr. They discussed a bond issue; Tom currently has a to
initiatives in place waiting for someone to come in and Tony does not want to disrupt that. The May(
has asked if 4B can pay $120,000 for Memorial Dr. Tony will try to get the developer to pay as mucl
possible and then include it in a bond issue. Streets in Eastvale may also be a part of the bond issue.
Pam added that it doesn't have to be built right away. We still have access to the park site off of Blai
Oaks and Paige Rd. It would be better having access off of Memorial Dr., but we can still proceed w
development. Tony said the $120,000 could change.
Tony also gave the board three different scenarios for bonds of $6 million, $6'/2 million, and $7 milli
LeRoy has suggested doing monthly payments so when payment is due, money is already there. It w
show the reserve is already there to make the payment. As soon as payment is made, you then start
making payment for the next one. They also requested Tony do a separate debt service for 4B even
though it's included in the City. Tony said there are safeguards in place for the economy so we will I
protected. If the economy gets better, then we go for a bond issue earlier. Tony said $7 million is a I
amount, but we can handle it. He wants to make sure the economy is still healthy 2 months from nov
because now it's pointing down and that's a concern the board needs to be aware of. He is comfortal
with all 3 projections.
LeRoy explained that there are 2 transactions occurring. The corporation is going to incur an obligati
to fund a project and City Council is going to issue certificates of obligation to fund the project. The
corporation and the city must follow the legal requirements for what they're doing. The city has to
publish a notice of intent to issue certificates of obligation. One month after that, City Council adopt
ordinance authorizing the issuance of certificates of obligation and that's the date the interest rate is s
One month after that we close on the certificates of obligation. Between the sale and closing, we hav
submit all the legal proceedings to the Texas Attorney General's office, they review it and if they apf
it we can proceed with the closing. That's about a 60-day process from when City Council adopts th(
notice. The notice has to state the maximum amount the city is going to issue, the purposes for the
certificate of obligation being issued, the source of payment and the date they are going to sell.
There will have to be a contract or agreement between the corporation and the city. The corporation
agree to make payments to the city in return for the city constructing these improvements. These
improvements have to be projects that are authorized for your corporation to undertake. It should be
page agreement and it will set out what your payment obligation will be. We'll work with Tony on h(
to structure how the money will flow and discuss the monthly payments.
On the 4B side, you are governed by what's in section 413, what's in the election proposition, then the
articles of incorporation bylaws. There's a requirement in the statute that you have to hold a public
hearing before you expend any funds on a project, also if before 60 days pass a petition is presented b
10% of the voters, then there's a referendum on the project. If the voters approve the project or type c
project at election, then there is no referendum. The proposition does specifically say land, buildings,
equipment facilities and improvements required or suitable for sports, athletic and public park purpos(
These purposes were before the voters in 1998. There's a good argument the voters have already
approved this. In March 2000, a public hearing was held when you adopted the Master Plan. He is nc
sure if that public hearing satisfies this. Susan said the complex was presented at the public hearing
there was no opposition to it.
LeRoy told the board he will do some research regarding this and he will also have discussions with tl
AG's office; if they are comfortable with it as is and we are also, then we can move forward. Susan s;
special session of the board can be called if needed after LeRoy gathers his information.
5. DISCUSSION AND CONSIDERATION OF ISSUANCE OF CERTIFICATES OF OBLIGATI
FOR DEVELOPMENT OF THE COMMUNITY COMPLEX.
John made a motion to follow Tony's recommendation to go out for $7 million in bonds. Sue second(
the motion. The motion carried.
6. CONSIDER ADOPTION OF A RESOLUTION DIRECTING PUBLICATION OF NOTICE O
PROJECT AND PROJECT TYPE AND NOTICE OF PUBLIC HEARING ON PROPOSED
PROJECT.
Delmer made a motion to table this item. John seconded the motion. The motion carried.
7. DISCUSSION AND CONSIDERATION OF ALTERNATE PROPOSAL FOR NAME OF THE
COMMUNITY COMPLEX.
Pam said after the worksession with the Park Board, she did not feel there was a strong commitment t(
the name of the complex, but there was to the theme. She and staff began talking with people about tI
name and they thought is sounded like a museum but they did like the theme. A resident gave us anot
name. We developed ideas for that name to project more of what the complex is about and all of the
things it will offer to the community. The name we're proposing is Five Star for these reasons -
1. The star is a common symbol of Texas culture
2. Denotes an image of first rate, high quality
3. The 5 elements we're including are the points on the star
Recreation - hike/bike trails, community center, aquatic facility and playgrounds
Community - library, special events, economic development, opportunities for social interact]'
Environment - preserve open space, develop water features and protect the natural habitat
Sports - baseball, basketball, softball, soccer, football, inline hockey
Culture - tie in the theme of the complex through landscaping, the architecture of buildings a
signage reflecting Texas history.
Pam added that it will be very important to be able to market this facility for tournaments and activitie
and Five Star is a more marketable name than Texas Heritage.
Sue likes the name Five Star but she believes the public should have some input in naming the facilit}
John likes the name also. He is not opposed to public input, but if it takes place it should be severely
restricted. He also thinks the city name should be incorporated into the name; this will also help to
market the facility. Bunker said he doesn't really like the name. Pam discussed this with Richard ovf
the telephone and he liked the name. Pam also discussed this with Vicki and her concern was that
something that was already done was being undone, but she wasn't opposed to the name and if the gri
wants it, she will support it.
John made a motion to adopt the name The Colony Five Star for the community complex. Delmer
seconded the motion. The motion carried.
8. DIRECTOR / ASST. DIRECTOR UPDATE -
Ridgepointe Park - Playground equipment will be delivered the first week in February.
Grant Application - City Council has authorized us to apply for a grant for Five Star. We have recei,
verbal commitment from Bill Sheveland that he will give us a letter stating they will hold off on Blair
Oaks crossing so we can use that as a developers contribution towards the park. He won't do anythin
until after we get notification of the grant.
We did not get the grant for the old library renovations. There were a lot of smaller communities that
applied in this cycle and probably applied for first time Rec. Centers. Texas Parks and Wildlife said,
should reapply in July.
9. ITEMS OF CONCERN TO THE BOARD.
Susan thanked everyone for their help during her term as president of the board.
The meeting was adjourned at 9:00 p.m.
i
Kathy NA I, Recording Secretary Susan King, Preside