Minutes 04/14/1998 (2) - Laserfiche WebLink

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.TUESDAY, APRIL 14, 1998 Council next considered the following related to authorizing the issuance of up to $2,000,000 City of Martinsville General Obligation Notes for Redevelopment Projects and General Public Property Improvements: Ao Adoption, on an emergency basis, of an Authorization and Reimbursement Ordinance. Introduction of a Note Ordinance. Setting of a Public Hearing on the above Note Ordinance. Earl B. Reynolds, Jr., City Manager, stated that the notes in question would be issued in much the same manner as the bonds recently issued for Schools Technology and Capital Improvements. Mr. Reynolds then stated the options that had been considered for acquiring the above funds, and emphasized that the financing approach recommended was the best way to acquire the funds needed, due to the excellent interest rate of 3.95% being offered by Patrick Henry National Bank. Mr. Reynolds said that the Note would be due in April of 2000, and that there would be the option of either paying off or re-financing the Note at that time. Mr. Reynolds stated that there was the potential for arbitrage eamings on this issue, as with the bonds for school needs. He also explained that passage of the Authorization and Reimbursement Ordinance would allow the City to reimburse itself for all expenditures done prior to the approval and issuance of bonds, from bond proceeds. Council Member HaskeH asked about the budget for expenditure of these fimds, and was told that $860,000 of the funds would be used for demolition of buildings at the W. M. Bassett site on Rives Road, owned by the City, and $150, 000 would be used to pay for a site development plan for the same property. Tom Harned, Assistant to the City Manager for Development, stated that about $700,000 of the balance of funds would be applied to demolition work and site development at the Tultex site on Moss Street recently donated to the City. Mr. Reynolds stated that this work would not begin immediately, and that there would be a mid-year revenue projection process to assess the full situation and ensure maximization of investment potential of Note funds on hand at that time. Council Member Teague stated that he would like to see the establishment of new business activity in the Clearview Business Park and other City-owned sites prior to any further demolition work other