HomeMy WebLinkAbout02/27/1996 MEDC
MINUTES OF THE MUNICIPAL ECONOMIC
DEVELOPMENT CORPORATION
HELD ON
FEBRUARY 27, 1996
A meeting of the Municipal Economic Development Corporation Board of Directors for the City
of The Colony, Texas was called to order at 6:40 p.m. on the 27th 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
Lori Harlan, City Staff Liaison, Director of Economic Development
City financial advisers Boyd London and Leroy Grawunder as well as Finance Director Tony
Johnston joined the EDC for the discussion of agenda item one.
1. DISCUSSION OF GOLF COURSE FINANCING ALTERNATIVES
President Gary McClure opened the meeting by asking Boyd London to brief the EDC on
financing alternatives that are available to fund the golf course project without relying on city
backing. Mr. London expressed his opinion that using strict revenue bonds as the board had
originally discussed would preclude simultaneous development of the 36-hole golf course facility.
Instead, it would be necessary to build a first 18 holes and then plan to build the second 18 after
the financial success of the first 18 is proven. Mr. London further stated that his opinion was
based on a belief that Mark Pressman Associates cannot sell a 36-hale bond issue to institutional
investors.
Board members asked questions ranging from deferring initial principal payments to the end of a
bond issue to questions concerning what has changed from the EDC's original intent to pursue
this project in October, 1994. Board members felt that the information concerning an inability to
finance 36 holes with revenue bonds was new information. The decision to focus the feasibility
study on a 36 hole facility was then questioned. President McClure then reminded the board that
ERA was directed to look at both 18 hole and 36 hole facilities and then continue with the size
project that was feasible, and they considered 36 holes a feasible project.
Other financing alternatives besides straight revenue bonds were then discussed. Ms. Harlan
introduced an idea from Matthews Southwest that their company step in and guarantee the EDC
in some manner to either achieve a lower interest rate or strengthen the financing of 36 holes. Mr.
London discussed the possibility of using a type of Public Improvement District to assess any
shortfalls in debt coverage to the Matthews Southwest property. Mr. London, Mr. Grawunder
and Mr. House will meet to discuss available options after all parties have had the chance to
research more what might be available and acceptable to Matthews Southwest.
In order to move forward with the project, President McClure asked Mr. London and Mr.
Grawunder to work with Mark Pressman Associates to determine the EDC's exact options and
under what circumstances those options are available. The date for the presentation of that
material will be Tuesday, March 19, 1996.
President McClure called for a short break to dismiss any guests that might want to leave prior to
other agenda items.
2. DISCUSSION CONCERNING GOLF COURSE ENVIRONMENTAL ASSESSMENT
FIRM
After a discussion of the funds necessary to complete the environmental assessment, board
members voted to postpone this decision until after the March 19 meeting. This will allow for a
better feel for how the project will move forward.
3. APPROVAL OF DRAFT MARINA RFP
Ms. Harlan presented a revised version of the RFP incorporating suggestions form the February
20 meeting. Board members approved proceeding forward with the RFP as revised.
The next meeting of the Economic Development Corporation will be Tuesday, March 19, 1996.
The meeting was adjourned at 9:04 p.m.
Lori Harlan, Director of Economic Development