HomeMy WebLinkAboutLansing Building Authority 1998 Minutes MINUTES OF A SPECIAL MEETING OF _. " D
THE LANSING BUILDING AUTHORITY
HELD ON DECEMBER 9, 1998, 10:30 a.m. ` "� J�'` 2
Members Present: Michael Navabi, Chairperson l�I I Y CLL:2li
James Smiertka, Secretary
Robert Swanson, Treasurer
Others Present: Kathleen Frantz,Recording Secretary
The meeting was called to order by Michael Navabi; roll call was taken and a quorum was
present.
1. RESOLUTION AUTHORIZING USE OF EXCESS BUILDING AUTHORITY
BOND PROCEEDS FOR ACQUISITION OF A FIRE STATION
Mr. Swanson provided the members with background regarding this bond series and indicated
that it was originally approved by LBA and Council for acquisition and financing of various
public safety facilities , including a police department firing range, improvements to existing fire
stations, including new fire stations. This Resolution authorizes the use of excess bond proceeds
to construct a new fire station.
James Smiertka moved to approve this resolution to authorize the use of excess bond
proceeds for other improvements to be acquired pursuant to the Contract, specifically a
portion of the costs of acquisition, construction and equipping of a fire station and site
therefor; supported by Michael Navabi; motion approved 3-0.
2. APPROVAL OF MINUTES—OCTOBER 13, 1998 REGULAR MEETING
Bob Swanson moved to approve the minutes of the October 13, 1998, Regular Meeting of
the Lansing Building Authority; James Smiertka supported the motion; unanimously
approved 3-0.
3. 1999 LBA MEETING SCHEDULE
Jim Smiertka moved that the Lansing Building Authority regular meetings be held bi-
monthly beginning February 9, 1999; Bob Swanson supported the motion; unanimously
approved 3-0.
4. PUBLIC COMMENT: None
5. OTHER BUSINESS: None
6. ADJOURN: The meeting was adjourned at 10:58 a.m.
MINUTES OF A REGULAR MEETING OF
THE LANSING BUILDING AUTHORITY
HELD ON OCTOBER 13, 1998, 10:30 a.m. �`` ` `' U' 16
Members Present: Michael Navabi, Chairperson Liyi'JS(NG CiT'i C L E Rt'ti
James Smiertka, Secretary
Robert Swanson, Treasurer
Others Present: David Berridge, Transportation Division Engineer
Kathleen Frantz, Recording Secretary
The meeting was called to order by Michael Navabi; roll call was taken and a quorum was
present.
1. INTERSTATE FOODS PARKING LOT - TANK REMOVAL PROJECT
Dave Berridge was present and provided the LBA members an update regarding this property.
Mr. Berridge also provided the members with a memo dated 10/12/98 detailing the history of
this property and LBA's action approving$24,500 for the purchase of this property in 1997,
including the removal of an underground storage tank.
The cost to remove the underground storage tank due to unanticipated conditions in the field is
expected to be $10,488.00 which is over the amount originally estimated at$6,300. Also, the
cost to purchase the property was $15,969.06, which is over the amount originally estimated at
$15,000.
Mr. Berridge is seeking authorization by the LBA to utilize $2,000 from unrestricted residuals in
account number 513-453660-974000-12064 to finalize this project. So moved by Bob Swanson
to authorize the expenditure of up to $2,000 from unrestricted residuals in account number
513-453660-974000-12064; supported by James Smiertka; motion unanimously adopted 3-0.
2. APPROVAL OF MINUTES—AUGUST 11 1998 REGULAR MEETING
Bob Swanson moved to approve the minutes of the August 11, 1998, Regular Meeting of the
Lansing Building Authority; James Smiertka supported the motion; unanimously approved
3-0.
The meeting was adjourned at 11:12 a.m.
Approved by LBA
12/9/98 Special Meeting
MINUTES OF A REGULAR MEETING OF
THE LANSING BUILDING AUTHORITY I`:.i
HELD ON AUGUST 11, 1998, 10:30
C. `n `I I'' {:3
Members Present: Michael Navabi, Chairperson L ;r`:151;, SIT' CLE��1{
James Smiertka, Secretary
Robert Swanson, Treasurer
Others Present: Helen Perry-Buse,LPD
Kathleen Frantz,Recording Secretary
The meeting was called to order by Michael Navabi; roll call was taken and a quorum was
present.
1. VACANT LOT—SOUTH CEDAR STREET: PARCEL NO. 3301-16-427-051-7
LBA owns this property which was acquired from the 1990 bond issue. Mr. Smiertka asked if
this is part of the Master Lease and Bob Swanson indicated it is and that this lot is too small to
construct a parking facility; however,the LBA should hold on to the property for possible future
use. Mr. Smiertka asked if this should be under the control of the parking division and Bob
Swanson answered affirmatively. Michael Navabi advised he will communicate to Mr. Berridge
that the Transportation Division will be responsible for payment of invoices and specials
assessments related to this property, as well as maintenance on the property.
2. POLICE FIRING RANGE - STATUS REPORT
Helen Perry-Buse,LPD, advised the LBA members as to the status of this project funded by the
recent bond issue. The construction of the firing range will begin during the week of August 17,
1998, and it will take approximately five months to complete. The first step will be to remove
some of the top soil as there is some contamination on the property, and in the area where there
is lead in the soil, the soil will be remediated and a fence will go around that particular area.
There is a committee that meets approximately every two weeks to discuss the progress of the
project, and the LBA will be kept apprised as to same.
3. APPROVAL OF MINUTES—MAY 12 1998 REGULAR MEETING
Jim Smiertka moved to approve the minutes of the May 12, 1998 Regular Meeting of the
Lansing Building Authority; Michael Navabi supported the motion; minutes approved 3-0.
The meeting was adjourned at 11:10 a.m.
� ��
MINUTES OF A REGULAR MEETING OF
THE LANSING BUILDING AUTHORITY
HELD ON MAY 12, 1998, 10:30 a.m. '` ( ( 2;
3,_
Members Present: Michael Navabi, Chairperson CITY CLEF(
James Smiertka, Secretary
Robert Swanson, Treasurer(arrived at 10:45 a.m.)
Others Present: Don Ballard, Parks and Recreation
Kathleen Frantz,Recording Secretary
The meeting was called to order by Michael Navabi; roll call was taken and a quorum was
present.
1. APPROVAL OF MINUTES:
Jim Smiertka moved to approve the minutes of the April 14, 1998 Regular Meeting of the
Lansing Building Authority; Michael Navabi supported the motion; minutes approved 2-0.
2. GROESBECK GOLF COURSE
Don Ballard was present and provided the members a written report and recommendation
regarding the improvements at the Groesbeck Golf Course, and fund balance of the bond issue
(the report is attached as part of these minutes). Mr. Ballard advised that the final walk-through
of the golf course will occur on Friday,May 15,1998, with the designer, and everything is almost
completed and should be open for business in July. With the interest monies there is a sizable
interest income for the project which has not yet been figured into any expenditure account. The
course is completed and no additional change orders are anticipated. Mr. Swanson indicated
that the balance of this bond project could go to reduce the debt service in the first year.
Jim Smiertka moved to approve the recommendation provided by Mr. Ballard and Eric
Reickel dated May 8, 1998; supported by Bob Swanson; approved 3-0.
The meeting was adjourned at 11:10 a.m.
May 8, 1998
To: Lansing Building Authority
From: Don Ballard, Golf Manager
R. Eric Reickel, Director of Parks &Recreation
Re: Groesbeck Remodeling Completion
The attached outlines the expenditures and balances in the accounts related to the Groesbeck
Golf Course/Tollgate Drain project. We would propose the following for the balance of funds to
further enhance the "new" course's marketability.
The first 2 items were reductions in the original bid process in order to keep the project within
original project fiscal parameters. The others are explained as they appear:
1. New perimeter fence and slope clearing west of the new#9 hole. This will finish this
hole rather than leave the existing fence hidden by dense growth. This will be the signature hole
of the course and will be one of the very best holes in Mid-Michigan. Cost: $7,000
2. Irrigation Controller upgrade will make the new system be state of the art for
maximum control and conservation of water applied. This will also be an improvement that will
not need to be done when the Back 9 improvements are done to coordinate the irrigation systems.
Cost $11,665.
3. Cart path#17 tee. We built new tees on the 17th hole to blend the new green on# 16
into the existing back 9. When we built the tee we did not install cart paths to keep traffic off the
tees due to cost considerations. Due to residual dollars we would propose doing this at this time.
Cost$2,200.
4. Paving of patio and cart staging area. This was last done 10 years age and needs to be
done to make the initially viewed area by customers look top notch. The old asphalt pad has
cracks in it causing leaks in the ceiling of the office located in the basement of the clubhouse.
Cost $7,300.
5. Improvements to#16 tee area. In order to compliment the new green on hole#16 we
would like to make some improvements to the tee area. The path and bridge from the tees to the
fairway has never been completed or paved. We would like to do this at this time as much as
practical realizing that there may be renovations coming to this area of the course. Estimated
cost to complete bridge railings and improve path are estimated to be $5,000 if we can pave the
path(we are waiting for confirmation on this due to possible flooding), and$3,500 if we can only
use alternate surfacing material (gravel, etc.).
6. Signage. In order to "finish"the new 9 we would propose the following signage
program. In order to proceed with these options we need to have the course laser-measured as
soon as possible so that these items may be ordered. Cost of laser-measuring $1,000.
-Granite tee signs on each of the new holes (see attached)
-Granite tee yardage markers on each of the 5 tees for each hole
These 2 items add to the effect on each hole.
-Granite course map showing the whole new front 9
This would be near#1 tee
We could entertain sponsorship possibilities for each hole for a fee that could be
applied to the Bond Payment Surcharge. Sponsorship rates should be enough more than the
purchase price to cover shipping, installation and maintenance. Cost for all items on attached
sheets.
GOLF-BLDG AUTHORITY FUND
Budgeted amount
$1,062,301.00 construction
$150,000.00 design,eng
total avail $1,212,301.00
acct#583-933890-97310243825
total contract costs $1,066,240.00
total change orders
to date(#7) $72,141.65
total design,eng $128,889.39
to date
GRAND TOTAL DESIGN&ENG $1,267,271.04
TOTAL BUDGET CONSTRUCT $1,212,301.00
TOTAL COSTS TO DATE INC $1,267,271.04
CHANGE ORDERS
BALANCE ($54,970.04)
OUTSTANDING EXPENSES
DESIGN,ENG $21,110.61
TOTAL ADD'L COSTS $21,110.61
TOTAL ANTICIPATED SHORT ($75,760.65)
CONTINGENCY $42.6%00
acct#583-933890-99200043825
GRAND TOTAL SHORT ($33,110.65)
BOND INTEREST INCOME AVAIL $85.648.87
AVAIL$FOR PROJECTS $52,538.22
Proposed projects
1. Fence#9 $7,000.00
2. Irrigation Controller $11,665.00
3.Cart Path#17 tee $2,200.00
4.Pave patio area $7,300.00
5.Improvements#16 tee $5,000
6.Signage&measure $8,000.00
Total $41,165.00
TOTAL PROJECT BALANCE $11,373.22
This does not include balance of Bond Issue costs of$32,069.27 that shows as available
acct#583-933890-74185543825
This does not include payment of Bond Interest costs of$29,952.67 that was paid in FY97.
accl#583-933890-982000-43825
CONSTRUCTION COSTS
Original contract $1,066,240.00
Eng & Design $150,000.00
total $1,216,240.00
payments to date $1,204,051.66 includes pay#11
balance (contstruct) $12,188.34
chng ord 1-7 $72,141.65
TOTAL PAI DTD TOTAL COST
Total anticipated construction cost $1,075,162.27 $1,138,381.65
Total design/engineering $128,889.39 $150,000.00
TOTAL $1,204,051.66 $1,288,381.65
$1,212,301.00 FUNDS
$1,212,301.00 ($76,080.65)SHORT
contingency $48,100.00
est balance at comp ($27,980.65)
PAYMENTS TO DATE $1,204,051.66
avail in constr acct $8,249.34
Unaccounted design (Sept.15 memo) $13,328.42 not anticipating paying
ICDC cost invoice $14,617.52 not anticipating paying
CONSTRUCTION COSTS
Original contract $1,066,240.00
change orders $72,141.65
total $1,138,381.65
ENGINEERING/DESIGN
Original contract $150,000.00
change orders 0
total $150,000.00
Estimated as of 4/1 Gr Total Constr $1,288,381.65
TOTAL PAI DTD TOTAL ANT COST
Total anticipated construction cost $1,075,162.27 $1,138,381.65
Total design/engineering $128,889.39 $150,000.00
TOTAL $1,204,051.66 $1,288,381.65
($1,212,301.00)budget
Construct budget $1,212,301.00 $76,080.65 SHORT
contingency $48,100.00
est balance at comp ($27,980.65)
Granite tee signs
Vendor cost ad panels shipping total (9)
Crippen Signs $944 $100 $600 $9,996
Fairway Stone of Ga. $495 $100 $600 $5,955
Burco Industries $345 $75 $600 $4,380
Golf Associates Inc. $300 $25 $600 $3,525
MINUTES OF A REGULAR MEETING OF ��i`• ?
THE LANSING BUILDING AUTHORITY ,,r i"AY 20 P011 i I ; 21
HELD ON APRIL 14, 1998, 10:30 a.m.
LANISINIG CITY CLERK
Members Present: Michael Navabi, Chairperson
James Smiertka, Secretary
Robert Swanson, Treasurer (arrived at 10:55 a.m.)
Others Present: Doug Rubley, Deputy Controller
Bill Danhof, Miller, Canfield, Paddock& Stone
Dave Berridge, Transportation Engineer
Kathleen Frantz, Recording Secretary
The meeting was called to order by Michael Navabi; roll call was taken and a quorum was
present.
1. APPROVAL OF MINUTES:
Bob Swanson moved to approve the following minutes,with one correction to the March
10, 1998 minutes wherein the account number for Miller, Canfield, Paddock& Stone Legal
Services and monies appropriated should be deposited into account no. 513 453660 743000
00000:
12/09/97 Regular Meeting
01/20/98 Regular Meeting
02/20/98 Regular Meeting
03/10/98 Regular Meeting
Jim Smiertka supported the motion; minutes approved 3-0.
2. PROPOSED PUBLIC SAFETY BOND ISSUE
Bob Swanson advised that in December 1997 the City Council and LBA approved the Contract
of Lease and Resolutions and since that time, the Mayor has decided to take action in another
form. Therefore, at this time, we would like to move forward with a Two Million Two Hundred
Thousand (2.2 million) Dollars issue for the Police Firing Range. Miller, Canfield, Paddock&
Stone prepared the resolution authorizing the issuance. Miller, Canfield, Paddock& Stone has
also been directed to prepare the Official Statement. City Council has already approved and
authorized LBA to go forward with this action. This bond resolution, once approved,needs to be
filed with the Department of Treasury and, thereafter, the bond sale will be scheduled for May
1998. Jim Smiertka asked whether the Council resolution contains information designating the
Financial Advisor and other details? Bob Swanson responded that it was already approved in the
previous Resolution. Bill Danhof indicated that it is the LBA's option to meet or not to meet
again to authorize the sale of the bonds. However, the authorization for the bond sale is included
in this resolution. Bob Swanson indicated he does not feel that LBA does not need to meet again
to authorize the sale. It should be noted that the City Council resolution designated Miller,
Canfield Paddock and Stone as bond counsel to and that Stauder, Barch&Assoc. as Financial
Consultant or a previously selected financial consultant through an approved RFP purchasing
process. The maximum interest rate on this bond is 7%.
Jim Smiertka moved to approve the Resolution; supported by Bob Swanson; approved 3-0.
3. Close out of 1990 Bond and Information regarding the Transportation Center
a. Close out of 1990 Bond
Mr. Rubley provided the members with a brief history regarding this bond issue. Mr. Rubley
advised that at this time, we should obtain quotes from an Escrow Agent and Verification Agent
and then we will be able to finalize this transaction. Mr. Rubley gave the Financial Consultant
the go ahead to get the bids and once a low bidder is selected we can proceed to close the 1990
Bond issue. This should all be completed by the end of May.
Jim Smiertka moved that since the LBA previously approved a resolution defeasing the
bonds based upon the Deputy Finance Director's recommendation, our Financial Advisor
is bidding out the functions of the Escrow Agent and the Verification Agent; and that the
Treasurer of LBA is hereby authorized to designate the Escrow Agent and Verification
Agency to the lowest and most responsive bidder; Supported by Bob Swanson; approved 3-
0.
b. Transportation Center
LBA owned part of this property and turned it over to the City who purchased the parcel from the
Developer to the Transportation Center for a little over One Million Dollars. There were a
number of contingencies that we had to pay for such as sidewalks, traffic signals,painting,
demolition, utilities, etc. We are waiting for a report providing the total of all costs. Mr. Berridge
will provide this report for the review of LBA members at the next LBA meeting.
The meeting was adjourned at 11:15 a.m.
Amended 4/14/98
MINUTES OF A REGULAR MEETING OF
THE LANSING BUILDING AUTHORITY Lr� iS1►�C G1T� CLERK
HELD ON MARCH 10, 1998, 10:30 a.m.
Members Present: Michael Navabi, Chairperson
James Smiertka, Secretary
Robert Swanson, Treasurer (arrived at 10:55 a.m.)
Others Present: Dave Berridge, Transportation Engineer
Kathleen Frantz, Recording Secretary
The meeting was called to order by Michael Navabi; roll call was taken and a quorum was
present.
1. AUTHORIZATION FOR DEVELOPMENT MANAGER TO SIGN OFFERS TO
PURCHASE ON BEHALF OF LANSING BUILDING AUTHORITY
Jim Smiertka moved to authorize Emil Winnicker,Development Manager, to sign the real
estate documents regarding the Interstate Foods property on Pere Marquette Street,
subject to approval as to form by the City Attorney's office; supported by Bob Swanson;
unanimously approved.
2. TRANSFER OF FUNDS REGARDING LEGAL SERVICES BY MILLER,
CANFIELD PADDOCK AND STONE
Bob Swanson moved that the balance of$9,440.78 remaining in the Zuker property
account number 513 453660 971000 12029 be transferred to the 1995 Bond Series Legal
Services Account No. 513-453660-743000-00000; supported by Jim Smiertka; unanimously
approved.
3. Other Business
Raney Trust
Jim Smiertka moved to authorize the Development Manager to get this property appraised
out of unrestricted LBA funds; supported by Bob Swanson; unanimously approved.
The meeting was adjourned at 11:15 a.m.
MINUTES OF A REGULAR MEETING OF El V
THE LANSING BUILDING AUTHORITY
Z
HELD ON FEBRUARY 10, 1998, 10:30 a.m. '`���
l.r�,��SIFdU C1i'r' CLERK
Members Present: Michael Navabi, Chairperson
James Smiertka, Secretary
Robert Swanson, Treasurer
Others Present: Mark Colby, Finance Department
Dave Berridge, Transportation Engineer
Kathleen Frantz, Recording Secretary
The meeting was called to order by Michael Navabi; roll call was taken and a quorum was
present.
1. JOINT REPLACEMENT PROJECT FOR THE PEDWAY (n Berridge)
Mr. Berridge provided members with information relating to this agenda items and deterioration
has occurred to the joints that run across the pedway which was installed in 1986. A condition
appraisal was previously performed, and rehabilitation has been recommended. Mr. Berridge
provided the members with a February 9, 1998 memorandum addressing specific issues relating
to this matter. Three quotes were obtained for the repairs, and Mr. Berridge recommended that
LBA approve the hiring of Alfred Benesch and Company, lowest bidder, as consulting engineers
to design and monitor construction of the Pedway Joint Rehabilitation Project. Jim Smiertka
asked why this was not included in part of the regular maintenance for this project. Mr. Berridge
indicated that it will cost more than$10,000 and therefore does not come out of the
transportation maintenance budget. The Lansing Building Authority owns this Pedway but it has
been re-leased to the City.
Jim Smiertka moved to approve Benesch and Company as consulting engineer to design
and monitor construction of the Pedway Joint Rehabilitation Project and that an
appropriation of$30,000 be made for payment of this service; supported by Bob Swanson;
unanimously approved.
2. OLDSMOBILE PARK IMPROVEMENTS
Jim Smiertka indicated this was placed on the agenda for informational purposes. Mr. Smiertka
indicated he has asked Brian Bevez, Assistant City Attorney, whether the land transfers are all in
place. Michael Navabi asked for a brief history on this project. Bob Swanson gave an overview
of the boundaries of Oldsmobile Park Baseball Stadium. Mr. Swanson indicated that the area
needs to remain open to the public for any improvements which Peter Sullivan, CEO of LEPFA,
has indicated they are aware of. The Lugnuts will also purchase additional picnic tables. Brief
discussion ensued regarding the City and Lansing Building Authority as they relate to land
ownership, etc.
Mr. Smiertka indicated that the minutes should reflect that the area must be kept open to the
public and any use must comply with the Operating.Agreement; and that a copy of these minutes
be sent to Peter Sullivan. So moved by Bob Swanson; supported by Jim Smiertka;
unanimously approved.
Mr. Smiertka indicated that the plaza area is part of the ancillary facilities placed under LEPFA,
pursuant to the Operating Agreement, and therefore it is O. K. for LEPFA to move forward with
the project for Oldsmobile Park improvements to expand the picnic areas in the right and left
field of the baseball park on the/Cedar Street side of the Stadium; in addition,pitching
machines, batting cages, etc.
The meeting was adjourned at 11:15 a.m.
MINUTES OF A REGULAR MEETING OF i s.
THE LANSING BUILDING AUTHORITY
2
HELD ON JANUARY 20, 1998, 10:30 a.m.
�SI��G CITY CLERK
Members Present: Doug Rubley, Interim Public Service Director L�t
and LBA Chairperson
James Smiertka, Secretary
Robert Swanson, Treasurer
Others Present: Bill Danhof, Esq., Miller, Canfield, Paddock& Stone
Kathleen Frantz, Recording Secretary
The meeting was called to order by Doug Rubley at 10:35 a.m.; roll call was taken and a quorum
was present.
1. RECOMMENDATION ON OUTSTANDING PARKING SYSTEM BONDS
Bill Danhof was present and provided members with a Defeasance Resolution which
contains two provisions:
► Defeasance of a portion of 1995 Bonds.
Mr. Danhof indicated there are monies that have been set aside in the 1995 bond
resolution regarding the B-1 Site. The Public Service Director has indicated that
it is not feasible at this time to construct a parking ramp on the B-1 Site. The
purpose of this Resolution is to use the remaining proceeds of the 1990 Bonds,
including interest earnings thereon, to defease portions of the 1990 Bonds and/or
portions of the 1995 Bonds. Mr. Danhof indicated that the approximate
remainder of the Escrow Fund(and logically the approximate remainder of the
construction fund) would be approximately $2,650,000, which includes 5%
interest.
► The second provision indicates that the City will be able to maintain the tax
exempt status of the Bonds in connection with the defeasance of the Bonds.
Therefore, contained in the Resolution is the recommendation that the parking ramp on the B-1
site is not to be constructed,the closing out of the 1990 bonds, and authorization for the opting
under the IRS Code and the regulations promulgated thereunder to maintain the tax exempt status
of the Bonds in connection wit the defeasance of the Bonds, as may be necessary to accomplish
the intent of this Resolution.
Mr. Danhof further advised that it is appropriate for City Council to approve a Resolution to
determine that it is not feasible to continue with the construction of the B-1 Site Parking Ramp,
in addition to the above detailed provisions.
Mr. Danhof mentioned that you could proceed to purchase a parking ramp in the future, if so
desired, by other means of financing on the B-1 Site.
Doug Rubley asked specific questions as to what are the requirements of the Escrow Agreement
as they might relate to a TIFA. Mr. Danhof indicated that monies obtained from other sources as
opposed to bond monies would provide more options for purchase. Mr. Danhof indicated that
bond proceeds would be used to pay for the 1995 Bonds. You can acquire these bonds by
number and, therefore, that would come off your statement. This, therefore, would reduce the
lease payment that LBA is paying to the parking system. Mr. Danhof indicated that it may be
2005 before you see actual principal reduction, but in the meantime, you would see a reduction in
interest payments.
Mr. Smiertka moved to approve the Resolution; supported by Bob Swanson; motion
passed unanimously.
Bob Swanson moved that LBA will forward the Resolution for City Council approval to
the Mayor for the Council agenda; supported by Jim Smiertka; passed unanimously.
The meeting was adjourned at 11:00 a.m.
yP� S '"G, Department of Law
MEMORANDUM
`�irCH1GP�
TO: MARILYNN SLADE, CITY CLERK
FROM: KATHLEEN FRANTZ, RECORDING SE7RITY
DATE:
FOR THE LANSING BUILDING AUTH `
RE: JANUARY 21, 1998
LANSING BUILDING AUTHORITY RESOLUTION
RE: DEFEASANCE OF PORTION OF 1990 AND 1995 BOND PROCEEDS AND
DETERMINATION NOT TO CONSTRUCT PARKING RAMP ON B-1 SITE
Attached for filing, please find an original Resolution regarding the above-mentioned matter
which was approved by the Lansing Building Authority at its regular meeting of January 20,
1998.
Thank you for your assistance.
cc: Lansing Building Authority Members Rubley, Swanson and Smiertka
Wm. Danhof, Esq. @ Miller, Canfield, Paddock& Stone
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City of Lansing Building Authority
State of Michigan
DEFEASANCE RESOLUTION
WHEREAS, the City of Lansing Building Authority (the
"Authority") has been incorporated by the City of Lansing (the
"City") pursuant to the provisions of Act 31, Public Acts of
Michigan, 1948 (First Extra Session) , as amended ("Act 3111) for the
purpose of acquiring, furnishing, equipping, owning, improving,
enlarging, operating and maintaining a building or buildings,
automobile parking lots or structures, recreational facilities, and
the necessary site or sites therefor, together with appurtenant
properties and facilities necessary or convenient for the effective
use thereof, for use for any legitimate public purpose of the City;
and
WHEREAS, on October 23 , 1989, the City, by resolution of its
City Council, authorized acquisition of certain property for the
purpose of constructing automobile parking lots and structures in
order to increase the supply of short-term client and shopper
d parking in downtown Lansing; and
J
i
o WHEREAS, on November 14, 1989, the Authority and the City
y entered into a Full Faith and Credit General Obligation Contract of
Lease (the "Contract") which provided that the Building Authority
o would acquire and construct automobile parking lots and structures
as detailed in the October 23 , 1989 City Council Resolution, and
pursuant thereto the Authority began acquisition, construction, and
equipping of the automobile parking Project authorized under the
Contract (the "Project") ; and
ce
WHEREAS, in order to finance the costs of acquiring,
constructing, and equipping the Project, the Authority issued its
Building Authority Bonds, Series 1990 dated May 17, 1990 in the
original aggregate principal amount of $32 , 791, 403 . 90 (the 111990
Bonds") pursuant to the provisions of Act 31; and
WHEREAS, the Authority has been proceeding with due diligence
to acquire and construct the Project with proceeds of the 1990
Bonds, but the Project has been modified from time to time by
resolutions of City Council and the Authority in accordance with
frequent changes in the need for parking in the downtown area, to
consist of several automobile parking lots, together with necessary
and related appurtenances;
WHEREAS, in order to reduce the costs of financing the
Project, the Authority refunded a portion of the 1990 Bonds with a
portion of the proceeds of its Building Authority and Building
Authority Refunding Bonds, Series 1995, dated as of April 15, 1995
issued in the original aggregate amount of $25, 100, 000 (the 111995
Bonds") pursuant to the provisions of Act 31; and
WHEREAS, the Authority intended to use all of the available
remaining proceeds of the 1990 Bonds, including interest earnings
thereon, to construct a parking ramp on the B-1 site to provide
additional parking in anticipation of the completion by Lansing
Community College of its Academic Services Facility and other
construction planned in the same area; and
WHEREAS, upon the advice of the Public Service Director the
Authority has determined that it is not feasible at this time to
construct a parking ramp on the B-1 site; and
WHEREAS, the Authority has been advised by Bond Counsel that
under the requirements of the Internal Revenue Code of 19861 as
amended (the "IRS Code") and the regulations promulgated
thereunder, it is necessary to use the remaining proceeds of the
1990 Bonds, including interest earnings thereon, to defease
portions of the 1990 Bonds and/or portions of the 1995 Bonds
(collectively, the portions of the 1990 Bonds and the 1995 Bonds
being defeased are referred to herein as the "Bonds") ;
WHEREAS, the Authority desires to provide for defeasance of
the Bonds by establishing an escrow fund sufficient to pay, when
due, the principal of, redemption premium (if any) , and interest on
the Bonds.
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NOW, THEREFORE, BE IT RESOLVED:
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a 1. The Authority hereby determines that it is in the best
interest of the Authority to use the remaining proceeds of the 1990
g Bonds, including interest earnings thereon, to defease portions of
a. the 1990 Bonds and/or portions of the 1995 Bonds, pursuant to the
requirements of the IRS Code and the regulations promulgated
thereunder. Either the Treasurer or the Chairperson of the
W Authority is hereby authorized to execute any elections under the
IRS Code and the regulations promulgated thereunder to maintain the
tax-exempt status of the Bonds in connection with the defeasance of
the Bonds.
2 . To accomplish the defeasance, either the Treasurer or the
Chairperson of the Authority is directed to purchase direct
obligations of the United States of America or obligations the
principal of and interest on which is fully guaranteed by the
United States of America, not redeemable at the option of the
issuer (the "Government Obligations") . Either the Treasurer or the
Chairperson of the Authority shall establish an escrow fund (the
"Escrow Fund") with Old Kent Bank, or such other qualified bank or
trust company as may be selected by the Treasurer of the Building
Authority (the "Escrow Agent") for the deposit of the Government
Obligations and cash as necessary to defease the Bonds and to pay
the costs related to the defeasance. The amount of Government
Obligations and cash to be deposited in the Escrow Fund shall be
such that the principal and interest payments received thereon will
be sufficient, without reinvestment, to pay the principal,
interest, and redemption premiums (if any) on the Bonds as they
become due pursuant to maturity or the call for redemption.
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The total amount of the Government Obligations and cash to be
deposited in the Escrow Fund is currently estimated to equal
approximately $2 , 650, 000. The funds to be deposited in the Escrow
Fund shall be transferred from the construction fund established
with the proceeds of the 1990 Building Authority Bonds and, if
necessary, any other monies available to the Authority.
At the time of purchase of the Government Obligations, the
Treasurer of the Authority is directed to determine whether any of
the Bonds should be called for redemption prior to maturity, if
recommended by the Financial Advisor and Bond Counsel (defined
below) as being in the best interest of the Authority.
3 . The Escrow Fund shall be held in trust by the Escrow
Agent selected by the Treasurer of the Authority, pursuant to an
escrow agreement (the "Escrow Agreement") which shall provide for
the safekeeping, investment, reinvestment, administration, and
disposition of the deposit being made to provide for defeasance of
the Bonds. If the Treasurer of the Authority decides that any
portion of the Bonds shall be called for redemption prior to
maturity, the Escrow Agreement shall irrevocably direct the Escrow
Agent to take all necessary steps to call such Bonds for redemption
including mailing of redemption notices. Either the Treasurer or
o the Chairperson of Authority is directed to execute and deliver the
N Escrow Agreement in such form as shall be approved by Bond Counsel
a (defined below) .
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4. Stauder, Barch & Associates, Inc. is hereby retained as
Financial Advisor (the "Financial Advisor") with respect to the
w defeasance of the Bonds, and to select the Government Obligations
Q for the Escrow Fund.
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5. Miller, Canfield, Paddock and Stone, P.L.C. is hereby
retained to continue to act as bond counsel for defeasance of the
Bonds notwithstanding the periodic representation by Miller
Canfield in unrelated matters of other potential parties to the
defeasance of the Bonds.
6. The Treasurer of the Authority is hereby directed to
retain an Escrow Agent and a nationally recognized firm of
certified public accountants (the "Verification Agent") to provide
a written report to the Authority verifying the sufficiency of the
Escrow Fund to pay the principal, interest and redemption premiums,
if any, on the Bonds as they become due pursuant to maturity or
redemption.
7. The members of the Authority and any other
administrators, agents and attorneys of the Authority are
authorized and directed to execute and deliver all other documents
and certificates and to take all other actions necessary or
convenient to complete the defeasance of the Bonds in accordance
with this Resolution, and to pay costs of defeasance from the
remaining proceeds of the 1990 Bonds, including verification agent
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fees, escrow agent fees, financial advisor fees, bond counsel fees,
and any other necessary costs.
8 . All resolutions, orders or parts thereof in conflict with
the provisions of this Resolution are, to the extent of such
conflict, hereby repealed. This Resolution shall become effective
immediately upon its adoption.
I hereby certify that the foregoing is a true and complete
copy of a resolution duly adopted by the City of Lansing Building
Authority, State of Michigan, at a regular meeting held on
January 20 , 1998, at 10 : 30 a.m. , prevailing Eastern
Time, and that said meeting was conducted and public notice of said
meeting was given pursuant to and in full compliance with the Open
Meetings Act, being Act 267, Public Acts of Michigan, 1976, and
that the minutes of said meeting were kept and will be or have been
made available as required by said Act 267 .
I further certify that the following Members were present at
said meeting: Rubley, Swanson and Smiertka
and that the following Members were absent: none
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I further certify that Member Smiertka moved
for adoption of said resolution and that Member Swanson
N supported said motion.
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a
I further certify that the following Members voted for
°g adoption of said resolution: Rubley, Swanson and Smiertka
a
a
and that the following Members voted against adoption of said
Q resolution: None
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Secretary
lKahleen M. Frantz
14:48 1/19
LAFS1\,59158.21050792 00019
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