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CITY OF MUSKEGON
LOCAL DEVELOPMENT FINANCE AUTHORITY
REGULAR MEETING
MINUTES
August 26, 2003
R. Kersman called the meeting to order at 4:05 p.m. and roll was taken.
MEMBERS PRESENT: C. Larson, R. Kersman, J. Peterson, R. Long, J. Kolkema-Shafer, J.
Derbin, F. Redmond, K. Birdwell, J. VanderWall.
MEMBERS ABSENT: P. Roy Jr., excused; S. Schnepp, excused; D. Witte; J. Hayner.
STAFF PRESENT: B. Mazade, C. Brubaker-Clarke, T. Paul, D. Smith, H. Griffith
OTHERS PRESENT: M. Ferriby, Hackley Public Library; G. Rasperson, Hackley Public
Library.
ELECTION OF OFFICERS
A motion to elect R. Kersman as chairperson was made by C. Larson, supported by F. Redmond
and unanimously approved.
A motion to elect C. Larson as vice-chairperson was made by F. Redmond, supported by J.
Kolkema-Shafer and unanimously approved.
A motion to elect F. Redmond as secretary was made by R. Kersman, supported by C. Larson
and unanimously approved.
APPROVAL OF MINUTES
A motion to approve the minutes of the regular meeting of November 20, 2002 was made by C.
Larson, supported by F. Redmond and unanimously approved.
NEW BUSINESS
Retiring of Bonds – T. Paul explained that there are several LDFA’s. The bonds were issued to
LDFA II (Medendorp Industrial Park). The bonds were issued in 1994. They are Proposal A
Bonds. Right now they are at a 6% interest rate. The interest rate is high. The LDFA would be
out of the business of capturing school taxes if it is approved to pay off the bonds. It would save
taxpayers about $76,000 by paying the bonds off at this time. The members were provided with
a proposed defeasance of 1994 LDFA bonds for December 1, 2003. J. Derbin asked if the audit
was up to date for the bonds. D. Smith stated that it was up to date with the filing status. M.
Ferriby stated that Hackley Public Library could not afford to have $35,000 taken from them all
at once. T. Paul stated that if the bonds were left as they are with the payments being made over
the years, it would end up costing more. By paying them off, the charge would be a one time
only charge. M. Ferriby felt that the City might be able to help alleviate the hit that the library
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would be taking. T. Paul stated that the amount owing on the bonds was too small to re-do. F.
Redmond asked if there was any way to space the expense the library would have so it would not
be done all at once. T. Paul stated that there was not. He has spoken with most of the
jurisdictions and they are fairly comfortable with this proposal to pay off the bonds now. There
was discussion on the calculation estimates schedule as of July 8, 2003. R. Kersman asked if the
commission could have more time to think about this and that perhaps some ideas will come up
to help alleviate the financial problems. T. Paul stated that there is some time. R. Kersman
suggested tabling this for two weeks. F. Redmond asked if it was possible to pay half the bonds
now and the other half later. T. Paul stated that the bonds would have to be completely paid.
A motion to table the retiring of the bonds was made by J. Derbin, supported by J. VanderWall
and unanimously approved.
R. Kersman suggested having the next meeting on September 18, 2003 at 4 p.m. The
commission members concurred.
Temporary License Agreement for Communications Connection – C. Brubaker-Clarke described
the site. A site plan of the site was displayed for the members. She stated that the LDFA owns
the property and the building of the GVSU site. Lakefront LLC owns the surrounding property.
She gave an update on what was being done with some of the lots. J. Kolkema-Shafer asked
who would maintain this. C. Brubaker-Clarke stated that GVSU would.
A motion to approve the Temporary License Agreement for the Communication Connection was
made by F. Redmond, supported by J. Derbin and unanimously approved.
C. Larson left at 4:48 p.m.
OLD BUSINESS
None.
ADJOURN
A motion to adjourn the meeting was made by J. Derbin, supported by J. Peterson and
unanimously approved.
There being no further business, the meeting was adjourned at 4:52 p.m.
hmg
8/26/03
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