HomeMy WebLinkAbout02/13/1996 MEDC
MINUTES OF THE MUNICIPAL ECONOMIC
DEVELOPMENT CORPORATION
HELD ON
FEBRUARY 13, 1996
A meeting of the Municipal Economic Development Corporation Board of Directors for the City
of The Colony, Texas was called to order at 6:50 p.m. on the 13th day of February, 1996, at The
Colony Chamber of Commerce. The following persons were in attendance:
Gary McClure, President
David Stanwick, Vice President
Jerry Sebastian, Secretary
Ronnie Fischer, Treasurer
Tommy Thompson, Executive Vice President
Mary Watts, Executive Vice President
John Dillard, Executive Vice President
Lori Harlan, City Staff Liaison, Director of Economic Development
President McClure opened the meeting by asking Councihnan John Dillard to update the board on
a meeting he attended that morning with the Corps of Engineers and state and federal review
agencies concerning the environmental assessment on Wynnewood Peninsula. Councihnan Dillard
explained that there were few comments from the participating agencies and asked Ms. Harlan to
address the tune frame necessary to conduct an environmental assessment. Ms. Harlan stated it
was difficult to project an exact time frame because much of the work will be done by the
commenting agencies and the EDC may not be able to speed their review process. Ms. Harlan
passed out copies of a proposal from CURA, Incorporated to finalize the environmental
assessment. An item will be placed on next week's agenda to discuss the proposal.
1. DISCUSSION AND DECISION ON GOLF COURSE PROJECT FINANCING
OPTIONS
Ms. Harlan updated the board concerning her most recent conversation with Rich Grossman, the
golf course project underwriter. Mr. Grossman called late on February 13 to say he had contacted
several banks concerning their willingness to issue the EDC a letter of credit. In his research, he
found that the banks required the city's taxing authority as backing when issuing the letter of
credit. Without the letter of credit, it was his opinion that it would be too risky to consider
straight revenue bonds for 36-holes (the interest rates are too high). Therefore, he felt the EDC
should consider asking Council to back the financing. Ms. Harlan also relayed a conversation she
had with Leroy Grawunder in which he stated that if the city was willing to put its taxing power
behind the project, it would be better and simpler to consider Certificates of Obligation for project
financing.
Board members quickly reaffirmed that at this point they are not interested in asking Council to
back the project. Council has made it clear in the past that the project should be done by the EDC
with as little liability to the city as is possible. Therefore, until all options are explored, city
backing of the financing is not considered a viable option.
Because of the change in thinking necessitated by this news, the board voted to cancel the
scheduled February 24 work session with the City Council. Board members requested that Ms.
Harlan contact Mr. Grossman, Mr. Grawunder, and city financial adviser, Boyd London, to
request a meeting as soon as possible. Questions to be answered include what financing options
are available to the EDC without city support, have financing options changed over the last few
months, what can the EDC do to ensure a lower interest rate?
2. DISCUSSION AND SELECTION OF GOLF COURSE PROJECT LEAD
CONSULTANT
Board members voted to postpone discussion of this item until financing issues are resolved.
3. PREPARATION FOR FEBRUARY 24 CITY COUNCIL WORK SESSION
There was no discussion on this item. The February 24 work session was canceled.
The next meeting of the Economic Development Corporation will be Tuesday, February 20, 1996.
The meeting was adjourned at 8:35 p.m.
Lori Harlan, Director of Economic Development