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Minutes 03-31-78MINUTES OF SPECL&L CITY CO~CIL MEET~NG OF ~.E CiTY OF BOYNTON BEACH, FLORIDA, HELD IN CITY HALL, FRIDAY, I~3~RCH 31, 1978 PRESENT Emily M. Jackson, Mmyor Edwd~d F. Harmening, Vice Mmyor Richard D. Caldwell, Councilman Joseph DeMarco, Councilman David Roberts, Councilman Fra~_k Kohl, City ~HmuaEar Tereesa Padgett, City Clerk Gene Moore, City Attorney Mayor Jackson called the meeting to order at 5:05 P. M. and announced it was a Special Meeting in accord auce with Section 56 of the City Charter to discuss the two items of Housing and Funding for the Recreational Complex. HOUSING Mr. Kohl referred to submitting aopies of a new resolution appro~£ng the application for a preliminary loan for low rent public housing and also a number of agreements for the Council to sign between Palm Beach County and the City of Boynton Beach. He added that the Housing Authority approved this agreement on Tuesday at their regular meeting. He ex- plained that before H.U.D. will give money to the Palm Beach County Housing Authority, the City must approve all the docu- ments submitted. This is requested so the Palm Beach County Housing Authority can receive H.U.D. monies to take over the homes in Boynton Beach and approval is required by the County Housing'Authority, the City Housing Authority a~ud the City Council. M~. Harmening questioned what the documents consisted of and M~. Kohl explained that they would allow the Palm Beach County Housing Authority to operate the homes in Boynton Beach with rent subsidies. M~. Harmening asked if they were different agreements and M~. Kohl explained that they were with covering rehabilitation for the homes in the area of North Seacrest Boulevard and new construction aP~where in the City of Boynton Beach. Mayor Jac~on asked if Mr. Moore had reviewed these documents and M~. Moore replied that he had not seen them. M~. Kohl referred to M~. Barry Seaman, the Executive Director of Palm Beach County Housing Authority, having to submit these documents, but stated since the attorney has not seen them and he thinks they should be reviewed, possibly another special meeting could be celled next week. Mayor Jackson requested this item to be include8 on the agenda for the regular meeting on Tuesday night.~ Mayor Jackson requested Mr. Moore to especially review Sec- tion D on Page 2 of the agreement reEarding rehabilitation. M~. Moore referred to there being fiscal responsibility to the City and M~. Kohl replied there was none as far as he knew. M~. Moore referred to the Housing Authority being an ML%YJTES - SPECIAL CITY COUNCIL M~ETING BOYNTON BEACH, FLORIDA M3~RCH 31, ~ 978 autonomous bodyaand Mr. Kohl replied that H.U.D. money is federal money and the City must give approval to meceive[it~ Mm. Caldwell requested Ms. Moore to look into Page 2, Para- graph B, as he would like to ~uow why this clause has been included. Mayor Jackson added that it was also noted that the requirementsoof the building code would not have to be met. Mx. Harmening moved to table this for a legal opinion to be brought up at the meeting on Tuesday, seconded by Mm. Caldwell. Motion carried 5-0. FUNDING FOR COM~LEX Mr. Kohl informed the City Council that the 55 acre site agree- ment between the Cou~uty and the City of Boynton Beach has been signed by both parties. The original plans for the 55 acre site, that we drew uo a long time before the Montreal Expos came into the picture, are being presented to you this after- noon to show you we did have plans for this area. He thinks they all have seen these plans before and they are displayed on the Board. At todays prices, the original plans would probably cost three-quarters of a million dollars. The ori- ginal plans did include a ball park, tennis courts, picnic area, small pl~-ground, etc., and allowed for additions as time went by. At the time when the County was first talking to us about the 55 acres, they stipulated that if we received a contract, that there would be a ten year limitation on dev- eloping this property. This is also included in the new con- tract, that we must submit plans and finish it within a cer- tain date. But now we have the additional at~raction of a professional ball team, the Montreal Expos. This will pro- duce tourists~ ~onies for business people, indirectly provide more taxes for the City, and a name for the City to identify with, '~Home of the Training Site of the Montreal Expos'~. This past week he has been contacted regarding a Heliday Inn, a Frisch,s (Big Boy) Restaurant, and a Vintage Restaurant with a banque~ room of 4,000 square feet. Don't ever think that an attraction like this will not start ~evelopers and business people thinking about Boynton Beach. In his humble opinion, one of the most import~uut things that we can do for the City of Boynton Beach and surrounding area is to utilize this com- plex as he has stated before, with more youth programs in all aspects of athletics and recreation. Not only to train our young to become Olympic stars or professional athletes, but also to have a place for children and adults wh~re they could take pride in building up their bodies for good health and welfare of each individual. And last, but not least, to have a connotation of a name nationally .known for the City of Boynton Beach. -2- MIA~TES - SPECIAL CITY COUNC~ ~ETING BOYNTON BEACH, FLORIDA M3~CE 31, 1978 Mr. Kohl then referred to the plan displayed and explained the location and various access routes. He pointed out the location of the 972 car parking area~ stadium, main ball , field, clubhouse witheshowers and lockers which will be big enough for arts and crafts when not in use for ball playing, clubhouse parking for 62 cars, three practice fields, ~ mile track with the inside area to be used for football, soccer and field events, playground equipment, restrooms, picnic facilities in the wooded Pine Tree smsa, handball courts, tennis courts, and parking in the area of these courts. He also pointed out an open area along the roadway for overflow parking. Mr. Kohl then referred to the funding and advised that for the past few days, he has called Washington and people in the State of Florida trying to track down ar~ loose money an~ his last resort was the information submitted obtained through a telephone call from ~. Arnold W. Schneider of William R. Hough & Company at 1:15 P. M. this afternoon. He then read the attached confirmation of this telephone conversation. ~. Roberts referred to there being an estimated 2% discount on the purchase price of the bonds, $100,000 of legal admini- strative and closing costs and asked if this was the normal fee and ~. Moore replied that he could not figure out the arithmetic on this as 2% is $30,000 and a sum of $1,370,000 and he does not think $100,000 is a reasonable figure. Roberts suggested that he examine this before they proceed further and ~o Moore explained how this was estimated. ~. Roberts referred to the interest rate being favorable, but questioned what the interest would be each year ~lus the sinking fun8 since they are not callable for ten years and M~. Kohl replied that he just received this himself this afternoon and we must go over a lot of things with the fis- cal agent. Thsre was further discussion about the interest and ~. Roberts suggested that this be reviewed B~rthe Attor- ney to possibly get more definite fig'~es. ~. Roberts then referred to the revenue which would be available from the contract with the ball club and anyone else involved and also the concession stand and M~. Kohl explained that every park was different and this would be included in the negotiations for the contract, He added that most cities get I~$ of the ticket sales, but then stressed that the most important thing is just because the Expos are coming here, it does not mean we will make money hut this is a complete recreation program. The Expos are just an added attraction. *SeeM in. of 4/18/78 -3- MINUTES - SPECIAL CI~I COUNCIL ~ETING BOYNTO~ BEACH, FLORIDA ~RCH 31, 1978 M~. Roberts explained how he was concerned with the amount of revenue sharing funds being used. Ms. DeMarco referred to the original plans calling for an expenditure of $750,000 and stated that this would be ex- pending an additional $750,000. This would have had to be developed as a park and sooner or later, we would have had to ~me up with $750,000 without the ball club. ~. Caldwell referred to the various things going ~n within the last six to seven weeks and stated he feels this town is about to e~tode in our favor. He thinks it is growing the way we want it to grow. He commended M~. Kohl, but ques- tioned how this would affect o~ taxes and ~. Kohl informed him that there would be no increase in taxes as these monies are coming in year in and year out. Mayor Jackson referred to M~. Kohl contacting other banks and fiscal agents and ~. Kohl agreed. Msyor Jackson referred to only the one financial plan being submitted and Mr. Kohl ex- plained how these were the best rates given. M~. Harmening referred to the contracts ~m the other cities being standardized and questioned what type of revenue we could expect and ~. Kohl replied that the concession stand would vary. He explained how the contracts called for I O~ of the ticket sales or a $~O,000 flat fee. He added that the ball club would only be here 2 to 2½ months. He then explained how the electronic score board could be rented out brir~ng in a few thousand dollars. He referred to the possi- bility of a minor league ball team and advised that the reve- nues for jmst the 2 to 2½ months for the major team would probably nov be over $15,000 for that period. Ms. Moore re- ferred to the revenue probably being used for the maintenance of the facility and Mr. Kohl replied that we were going to have the facilities any~ay which would have required mainte- nance. ~±~e original plans would have required upkeep. Mayor Jackson referred to the need for Congress Avenue being widened and stated that she hoped the County would speed up the time table for this to alleviate the traffic. Mayor Jackson referred to when Ms. Shepard submitted an offer a few years ago and included insurance and asked if that was included this time and ~. Kohl reolied that the informavion submitted was taken over the phone and he must get further detailed information. ~. Roberts suggested that no insurance be considered because it is only a 15 year issue. M~. Caldwe!l referred to the restroom facilities and asked if there would be much of a capital outlay for sewer lines and M~. Kohl informed him that the sewer ~ud water lines are MINUTES SPECIAL CITY COUNCIL ~ETING BOYNTON BEACH, FLORIDA M~RCH 31, t978 there at the scnoo_. He added that everything and there are no serious wants to help. the staff has gone over problems and everybody ~ayor Jackson referred to not usually having audience parti- cipation at special meetings, but stated since this is a great magnitude, she would like to hear comments from the audience. Mx. Don Fenton, 120 N. E. 19th Avenue, appeared before the Council and stated he would like to spes2~ as a taxpayer, former P~esidsnt of the Chamber of Co~erce and President of the Rotary, in favor of this park. In reference to eco- nomics, he thinks they are being overly concerned with the $1,500,000 as he thinks the economic benefits will far out- reach that. The impact is obviously evident with the tre- mendous growth with revenues s~ud support. He told about the success of the West Palm Beach stadium, He then stated they did not have to be concerned with Suet the two month period and told about senior leagues, minor leagues~ and rookie leagues probably having interest in using the facility. He then referred to the present lack of ~acilities a~ud exolained how the various tea~ were limited with practice and p~aying fields. He stated he thinks this will do more for Boynton Beach at this particular time than anything he can think of. He thinks the timing is terrific, the location is terrific, and Congress Avenue will be widened. He explained how there was the possibility of organizing a rookie league with being within co~muting dist~ce of West Palm Beach, Fort Lauderdale, and Pompano Beach. ~. Leon Smiles, President of the Boynton Beach Democrhtic Club, appeared before the Council and advised that he has talked to the senior citizens and they are all in favor of it. The Council has injected pride in the people. He then thanked the Council. _Mr. Harold Schmidt, 1103 S. W. 15th Street, Leisureville, appeared before the ~ounci! and advised that at one time, he handled all the insurance for Yankee Stadium and belongs to Local 366 of Ushers and Ticket Takers from Yankee Stadium. He requested their group to be considered a~ud added that he thinks this is an excellent idea and will put Boynton Beach on the ~ap. ~, John Jameson, 649 Las Palmas, appeared before the Council and stated he thought M~. Fen~on listed what anybody could say of what baseball~ could mean to everyone in this area. It has aroused everyone. It will make Boynton Beach some- thing more than just a quarters for sleeping. In addition to what M~. Fenton mentioned, he thinks the City Manager should also contact the School Board as possibly tournament bas~ball~games involving area high schools could be held MIB-~TES - SPECIAL CITY COUNCIL MEETING BOYA~ON BEn. CH, FLORIDA MARCH 31, 1978 here which would be a wonderful thing for the teenagers. Kohl added that Mm. Jameson had talked to him about this and he contacted Mx. Earl Hawk, Principal of Atlantic High School, and he has stated that all tournament games would be played at this stadium. M~. Roberts stated again that the only thing he is concerned with is the amount of interest Olusthe sinkin~ fund each year. He thinks~ we could~Wandle $t00,~00 each year.- Mr. DeM~rco added that hopefully by then, we will have doubled the popu- lation with more revenue. Mm. Roberts added that the money we receive will be drawing interest until the building is completed. ~. Caldwell referred to the tentative time schedule showing the monies wouldh,t be received until June 1978 and asked if everything could be done in that period and ~;~. Kohl replied that if the Council votes on this, he can start irmmediately proceeding with this and on the acreage as far as the develop- ing. ~. Moore recommended that the Council approve the financing plan in principle subject to finalization On Tuesday night as the bond costs should be pinned down. He added that he could work with ~. Kohl and get the hard facts. Also, if this ac- tion is taken immediately, the Expos must be contacted and pinned down on a contract. A report could be given at the regular meeting on the terms with them and their commitment. ~. Kohl added that if the Expos do come here, he must be ready in February. Once it is approved, he must start. ~. DeMarco made a motion that we approve this financial olan in principle, to get the wheels in motion and possibly if-there is a better deal we are giving tentative approval; and also based on besting the Expos signed up to coincide with this. He thinks it should be tied in, so the stadium isn't built without a ball team. Mm. Caldwell seconded the motion. ~vor Jackson clarified that the motion was to accept this financial plan in principle with making sure the Expos are coming. Under discussion, Mr'. Roherts stated he thinks the fiscal agent can inform us about the amount of money neces- sary annually to retire the deb~. Mr. Moore referred to it being noted that the heaviest deb~ service required is ~49,652.50. ~. DeMarco clarified that this motion is to have the City Manager and City Attorney get active. Motion carried 5-0. ADJ 0URN~,~NT ~. Caldwet! .made a movion to adjourn, seconded by Mr. Harmening. Motion carried 5-0 and the meeting was pro- ~ adjourned at 6:00 P. M. pe~ ~y of 4/18/78 -6- MINUTES - SPECIAL CI~ COUNCIL ~ETING BOYN_ON ~ACH, FLORIDA M3~RCH 31, 1978 CITY OF BOYNTON BEACH, FLORIDA ATTEST: Councilman Clerk Recording Secretary (One Tape) -7- M EM 0 P~A N D UM ~4arch 31. 1978 TO: Hon. Mayor & Council Sports Complex The 55 acre site agreement between the County and the city of Boynton Beach has been signed by both pa~ties. The original plans for the 55 acre site, that we drew up a long ti~ae before the Montreal Expos came into the picture, are beingprese~te~ to you this afternoon to s~ow. you we did have plans for this area. ~r=~)m- At todays przces the orzginat plans would probably cost tb~ee-- ~fJ quarters of a million dollars. ~/~/~/~' The original plans did include a ball palrk~ tennis courts~ picnic area, small playground, etc., and allowed for additions as time went by. At the time when the county was first talking to us about the 55 acres, they stipulated that i~ we received a contract that there would be a ten year limitation on developing this property. This is also included in the new contrac~c, that we must submit plans and finish it within a certair~ date.. B~t now we have the additional attrmction of a professional bali teara~ the Montreal Expos. This will produce tourists, monies for business people, ~directly provide more taxes for the city, and m ~ame ~or the city to identify wit~,. "Home of the Training Site of the F~ntre~i Expos." This past week I've been contacted' regarding a Holiday In~, ~ Frisch's (Big Boy) Restaurant, and a vintag~ Restaurant with banquet room of 4,000 square feet. Don't eve~ think that an attraction like this will not start developers and business people thinking about Bolrnton Beach. In my humble opinion, one of the most important thfu~gs that we d~.for the city of Boynton Beach and surrounding area is to utilize thzs complex as I have stated before~ with more ~onth programs in all aspects of athletics and recreation. ~ot only to train ou= young to become Olympic stars or professional athletes, b~t also to have a place for children and adults where they could take pride in building up their bodies for good health and welfare of each individual° -2- And last, but not least, to have a conno%atio~ of a name known for the city of Boynton Beach. ~ First I will show you a copy of the old plans, an~ the~ & copy of the 55 acre site develeped fully. I also have a co~ of ~ letter regarding the financing. Frank Kohl city ~anage~ FK:sr Page 1 of 4 Pages TELEPHONE CALL FROM MR. ARNOLD W. SChnEIDER OF WILL/A~ 1{o HOUG~ AND COMPAAP/, MARCH 31, 1978 ~ 1:15 P.M. Dear Mr. Kohl: -Set forth below is a preliminary summary of a financial plan for the issuance of $1,500,000. City of Boynton Beach, Florida Public Improvement Revenue Bonds, Series 1978 (could also be entitled Guaranteed Entitlement Revenue Bonds). ~NTRODUCTION The Bonds would be issued under the anthorit~ of the constitution and the statutes of the State Of Florida including part of Chapter 166, Part II, Florida Statutes and a Resolution which would be adopted by the City. The Bonds would be validated by the Circuit Court of Palm Beach County as a condition of closing and delivery. pESCRI'PTION OF BONDS The Bond would be dated February 1, 1978 in $5,000~denominations' ' bearing semi-annual interest on February ist and August 1st of each year and would mature on August Ist in the years ~n~ amounts as ~ollows: YEAR AMOUNT RATE 1979 70,000. 1980 75,000. 4.25~ 1981 75~000. 1982 80~000. 1983 85~000. - 4.75% 1984 90,000. 4~85% 1985 95,000. 5 1986 95,000. 5 1987 i00,000. 5.1% 1988 105~000. 5. i0~ 1989 115,000. 5.25% 1990 120,000o I991 125,000. 1992 130,000. 5.6 1993 140,000. 5.7 % The interest rates set forth on the above Schedule are for todays market conditions for an issue of this type assumin~ ~ Moody's rating of "A" on the Bonds. Page 1 of 4 Page~ TRLEPHONE CALL FROM MR. ARNOLD W. sCHNEIDER WILLIAM R. HOUGH & COMPANY MARCH 31, 1978 REDEMPTION PROVISIONS The Bonds maturing in the years 1979 to t988 would not be redeemed prior to maturity. Bonds maturing in the years 1989 and thereafter would be redeemable prior to their stated dates of maturity on August 1, 1988 or any interest payment date thereafter at par in accrua lQinterestto the date of redemption plus a premium of 2½ percentum if redeemed on August 1, 1988. Such premium would be reduced by 1/4 of one percent of the par value thereof for each year from August 1, 1989 to the~stg~e of redemption of the bonds so redeemed prior to maturity. REGIST~RATION The bonds would be registered as to principal only or as to both principal and interest. SECURITY The principal of and interest on the bonds would be secured e~aally and ratably by a prior lien upon and a pledge of the "Guaranteed Entitlement Funds" of the State Revenue Sharing monies accruing annually to the City pursuant to Section 218.21 (6)(b) Florida Statutes and the investment income earned on the Sinking Fund and the Reserve Account therein. These sources of securities will be hereafter referred to collectively as the Pledge Funds. ISSUANCE OF A~DITIONAL BONDS The City would reserve the right to issue a~ditional parity bonds provided.that the Guaranteed Entitlement Funds would provide at least a 1.50 times coverage of the maximum principal and interest require- ment on the outstanding bonds and the additional bonds for which such test is applied. DEBT SERVICE COVERAGE The maturity schedule and interest rates as set forth under"Description of Bonds" has an average annual debt service requirement of $147~000. per year. The maximum debt service required for the proposed issue amounts to $149,652.50 which amount is covered 2.26 times by the City's Guaranteed Entitlement Funds which total $337,969~ each year. Page 2 of 4 Pages TELEPHONE CALL FROM MR. AR~OLDW. WILLIAM R. HOUGH & COMPANY MARCH 31, 1978 SC~INEIDER .COVENANCE TO BE CONTAINED I~ BOND RESOLUTIO~ 1. The Guaranteed Entitlement Funds as received would be impressed with a trust infavor of the'bond holders and would be applied in the following manner in order of priority:. A. Guaranteed Entitlement Funds would first be placed into the "Guaranteed Entitlement Revenue Funds". B. Pledged funds would thereafter b~ dispersed on a mPnthly basis into the Sinking Fund in amounts equal to 1/6-of the interest next becoming due and commensing 12 months prior to first principal maturity date in amounts ec~_%at to 1/12 of the principal next becoming due. Co Pledged funds would next be applied toward the reserve account on a monthly basis in an amount equal to 1/12 of 20% of the maximum debt service requirement until there is on deposit therein an amount equal to the maximum debt service requirement due in any ensuing year (it is suggested that an amount equal-to the maximum debt service requirement be placed in the reserve account at the time of the sale of the bond proceeds). 'D. The balance of the pledged funds remain after the above requirements have been met could be used by the City for any lawful purpose. 2. The Resolution would also contain such other protective covenance as ar normally found in other similiar bond issues and which would include the following: provisions stating that the Sinking Fund Reserve Account, etc. would be trust funds for the purposes stated in the Resolution; provisions stating that the City would not take any action which would impair or'adversty affect the City's ability to receive the Guaranteed Entitlement Funds in the raaximum amount permitted by law; provisions stating that the City would maintain books and records relating to the collection and disbursment of the pledged funds and providing for an annual audit of such books and records. ~EN~ATIVE APPLICATION OF BOND PROCEEDS Allowing for an estimated 2% discount on the purchase price of the bonds, $100,000. of legal administrative and closing costs and an initial deposit of $100,000. of bond proceed to the Reserve Account the City would have a balance available of $1,360,000. to be deposited to the Construction Fund. Page 3 of 4 Pages TELEPHONE CALL FROM MR. ARNOLD W. WIIJ,IAM R. HOUGH & COMPANY MARCH 31, 1978 SUGGESTED SCHEDULE OF EVENTS SCHNEIDER Mr. Shepard and I have developed the following tentative zchedule of events which we feel can-be met by the various parties involved~ Adopt authorizing Resolution on April 4, 1978 B. File for validation on April 5, 1978 Receipt by the City of a purchase contract from william R. Hough & Co. April 4th or April llt_h. D. Bond validation Hearing on May 3, i918 E. Appeal period from validation expires on Ju~e la 1978 F. Closing and delivery on June 2, 1978 We are pleased to respond to the City's request for this preliminar~ financing plan. t A more detailed financing plan will Be foll~,ing shortly. Both A1 Shepard and I will be happy to discuss this matter with you at your convenience. If you have any questions or comments on th~ material co,tailed herein please do not hesita~ to call. Very truly WILLIAM R. HOUGH & CO. PB Arnold W. Scb/~eid~r, Assoc. Alfred C. Shepard, Partner CC: Hon. Mayor & Council City Attorney Central File WILLIAM R. HOUGH & CO. P. O. Box 3546 Orlando, FL 32802 Phone: 305-841-1685 Page 4 of 4 Pages