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032502 EDA AgP .. .. CITY OF SHOREWOOD '5755 ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL MONDAY, MARCH 25, 2002 8:00P.M. or AGENDA 1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING A. Roll Call B. Review Agenda 2. APPROVAL OF MINUTES A. EDA Minutes of January 28,2002 (Att.-#2A Minutes) 3. NEW BUSINESS A. Selection of a Financial Advi$or for Public Safety Facility (Att.4J3A ~ . Treasurer's and Bxecutive Director's memorandum) , B. Update on Public' Safety Facilities Project 4. OTHER BUSINESS s. ADJOURN CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS MONDAY, JANUARY 28, 2002 6:30 P.M. MINUTES DRAFT 1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING President Love called the meeting to order at 6:31 P.M. A. Roll Call Present: President Love; Commissioners Garfunkel, Lizee, Turgeon, and Zerby; and Executive Director Dawson Absent: None B. Review Agenda President Love reviewed the Agenda and without objection from the Board, moved forward with the meeting. 2. APPROVAL OF MINUTES A. EDA Minutes of December 10, 2001 Zerby moved, Lizee seconded, approving the EDA Minutes of December 10, 2001, as presented. Motion passed 5/0. 3. NEW BUSINESS A. Redevelopment Plan Administrator Dawson explained the Excelsior Fire District had purchased the property at 24140 Smithtown Road for use as a Public Safety Facility to be shared with the South Lake Minnetonka Police Department. He also noted the establishment of the Shorewood Economic Development Authority in 2001, as a financing vehicle for this public safety facilities project. He noted the EDA's involvement would include the ability to issue lease-revenue bonds with payment of annual obligations coming from the fire and police joint-powers organizations. In order for a project such as this one to be eligible for qualification as an EDA project, he explained, it must meet certain criteria including issues such as the abatement of blight, deterioration, or erosion of property values. He noted this project would meet the required criteria, as not providing adequate public safety services would put existing and new development at risk of deterioration. He. then reviewed the sequencing of events necessary for the authorization of the EDA to undertake a project such as this facility. Administrator Dawson noted the Redevelopment Plan for Redevelopment District No.1 (the Project Plan) had been prepared. He noted the Project Plan described the proposed project, identified its consistency with State statutes and the City's land use plans and zoning ordinance, and outlined how the SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES January 28, 2002 Page 2 of2 project would be administered and financed. He noted a Redevelopment Plan must be approved by the EDA in order for the project to proceed. Commissioner Zerby questioned the responsibility of costs of maintenance issues for the facility. Administrator Dawson stated specific lease arrangements were being prepared by the EDA Attorney at this time regarding this matter; however, he anticipated expenses would be split equally between the joint-powers entities. Zerby moved, Turgeon seconded, Adopting RESOLUTION NO. 02-001, "A Resolution Approving the Establishment of the Redevelopment Plan for Redevelopment District Project No. I." Motion passed 5/0. B. Revised Cooperation Agreement Administrator Dawson reviewed the revisions to the proposed Cooperative Agreement regarding the Redevelopment Plan for the Public Safety Facility being planned at 24140 Smithtown Road. He noted concerns had been expressed regarding the future intentions of the Shorewood EDA. He stated the intentions of the EDA were altruistic in an effort to enable financing of the project to take place thereby allowing the Project Plan to move forward. Commissioners Garfunkel and Zerby requested clarification regarding potential plans and responsibilities for a fire station on the east side of the Excelsior Fire District. President Love stated he appreciated the sensitivities to potential activities in the future discussed within the Cooperative Agreement for this project, noting it was always important to consider these potential fire stations would be serving the entire South Lake Minnetonka community. Garfunkel moved, Turgeon seconded, Approving the Revised Cooperative Agreement for the Redevelopment District Project No.1. Motion passed 5/0. 4. OTHER BUSINESS There was no additional business presented for consideration this evening. 5. ADJOURN Turgeon moved, Zerby seconded, adjourning the Shorewood EDA Meeting of January 28,2002, at 6:57 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Sally Keefe, Recording Secretary Woody Love, President Craig W. Dawson, Executive Director SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY 5755 Country Club Road Shorewood, Minnesota 55331-8926 952.474.3236 FAX: 952.474.0128 MEMORANDUM DATE: Shorewood Economic Development Authority Commissioners Bonnie Burton, Assistant Treasurer ~ Craig W. Dawson, Executive Director C%t> March 20, 2002 TO: FROM: SUBJECT: Appointment of a Financial Advisor In early February, EDA staff issued a "Request For Proposal" (RFP) for financial advisory services for the Shorewood Economic Development Authority. On March 13, staff interviewed three firms of the four that responded with a proposal for services. After the interview process, staff checked references and reviewed fee materials submitted by the applicants at the time of the interview. The entire process was very comprehensive in order to assure the best possible candidate for this important project. As a result of this process, Staff believes that Mr. Paul Donna, who is with the firm of Juran & Moody, is the best qualified for the Public Safety Facilities Project. We therefore recommend that he be appointed Financial Advisor for the Shorewood Economic Development Authority on this project. Paul did his "homework" and came to the interview prepared to discuss project details with creativity and depth. Mr. Donna has been in the field of public finance for 13 years with particular emphasis on debt and lease financing, long-range capital planning, general infrastructure, and economic development finance. He currently works with several cities in the area, including the cities of Eden Prairie, Victoria, Chaska, Watertown, and Rogers. His firm is somewhat unique in that it is affiliated with securities underwriter Miller Johnson Steichen Kinnard (MJSK) and can conduct competitive bond sales, negotiated sales, or private placement sales. For the year ending 12/31/2001, MJSK submitted a proposal on 100% of the bond sales that Juran & Moody conducted on a competitive basis. Of these, it submitted the winning bid 33% of the time. Further, to ensure the integrity of the competitive bidding process, it requires itself to submit its bid to the issuer 15 minutes prior to bid time. (Most firms submit bids one minute prior to the deadline.) The firm's fees are mid-range. #3/i EDA Financial Advisor Recommendation Page 2 In addition to assisting the EDA with bond sales, Paul Donna and his firm provide many follow-up services, usually at no additional charge, including cash-flow analysis, bond proceeds investment, information seminars and work-sessions. RECOMMENDATION: Staff is pleased to recommend that the EDA appoint Paul Donna, with the firm of Juran & Moody, as rmancial advisor for the Shorewood Economic Development Authority on the Public Safety Facilities project.