Laserfiche WebLink
<br />r; <br />_4 'i.J <br /> <br />TUESDAY <br /> <br />FEBRUARY 13, 1979 <br /> <br />specific financing program to support construction of the proposed facility, <br />our answer would be positive. However, this question need not be answered <br />at this time, since the second phase of the engineering and environmental study <br />will be undertaken and completed prior to the need for the City to undertake <br />any substantial financing; furthermore, upon receipt of this report the City <br />will be in a better position to evaluate the projected benefits and costs and <br />to make a sound decision. <br /> <br />- <br /> <br />As we mentioned during our discussion in Richmond, we believe that the City <br />of Martinsville should look at the economic benefits that might accrue from <br />the consolidation of its various utilities for financing purposes as part <br />of the overall program, since the work involved in the drafting of the general <br />bond resolution would not be substantially more involved if this document <br />were to also provide the City a method by which it could finance short-term <br />cash flow needs. We believe that this project could be utilized as a vehicle <br />to provide economic benefits to the other utilities in the financing of their <br />capital needs. <br /> <br />Furthermore, during the next phase of the investigation, we believe it would <br />be advisable for the City of Martinsville and its consulting engineer to <br />consider the ancillary economic benefits that would accrue to the general <br />commerce of the City and the area from the recreational use of the Ridgeway <br />project. In addition, the second phase should include an in-depth study with <br />the City of Danville as to their desire to enter into a contract to purchase <br />a portion of the energy from the Ridgeway project which might enhance the <br />economic return of the project. <br /> <br />We would be happy to provide assistance to you during the second phase of the <br />project in the development of the specific financial plan that the City of <br />Martinsville would be utilizing in implementing such and in the preparation of <br />the general bond resolution and the other contractual agreements. <br /> <br />Elaborating on his statement, as well as commending the City's Select Citizens Committee for its <br /> <br />in-depth study of the Beck Appraisal Report and other factors pertinent thereto, Mr. Craigie stated <br /> <br />that the City's proposed "Ridgeway Project" looks as good "on paper" as any similar project he and <br /> <br />.- <br /> <br />his associates have examined, noting that the low operating costs and long life of hydro-electric <br /> <br />generating plants attract the interest of investors (i.e., those who purchase bonds issued for <br /> <br />such systems). In addition, Mr. Craigie pointed up some of the desirable features attached to the <br /> <br />City's proposed project, such as its site (being in an undeveloped area of Henry County) and its <br /> <br />potential for recreational and economic benefits. Other related matters brought to Council's attention <br /> <br />by Mr. Craigie and his associates included the establishing of a bond or debt service reserve fund, <br /> <br />the need to follow accepted accounting principles relating to depreciation, the use of arbitrage and <br /> <br />