HomeMy WebLinkAbout87 0914 minCITY COUNCIL SPECIAL SESSION
sEPTEMBER 14, 1987
CITY CO~fNCIL CHAMBERS
7:00 P.M.
MINUTES
The Plainview City Council convened in Special Session at 7:00 p.m
in the Council Chambers of Plainview City Hall on September 14,
1987, in order to review innovative financing techniques.
Present were: Mayor E.V. Ridlehuber and COuncilmembers Alton
Jackson, Bobby James, Junior Brown and T® Aday. Councilmembers
Don Dickson, Terry Clements and Barbara Dorman were absent.
Staff present were: City Manager Jim Jeffers, Director of Finance
Norman Huggins and Chief of Police Roy Osborne.
News media present were: Cathy Don~hue - K.V.O.P.;
Orr - Plainview Daily Herald.
and Richard
Guests present were:
and Jim Ferrell.
Bob Williams; Norvene Owen;
David Wilder
Bob Williams was representing NESFAC, Inc.; 1301 Capital of Texas
Highway; Suite C-300; Austin, Texas 78746; (512) 327-6020.
Mr. Williams stated that NESFAC had come up with an innovative
financing technique because of the financial crunch that many
cities were experiencing and the difficulty cities were
experiencing in issuing bonds and securing State and Federal Grant
Monies. Mr. Williams stated that the innovative financing
technique was simply lease purchasing but applied to major
infrastructure and the construction of buildings. NESFAC would
require the participating entity to begin paying lease payments as
soon as the agreement was executed. The minimum issue is
$2,000,000.0.0 with a maximum maybe being around $350,000,000.00.
The City of McAllen is currently negotiating with NESFAC for a
$6,000,000.00 convention center facility and South Padre Island
has indicated that they may be interested in a $15,000,000.00
facility. The maximum payout would be twenty years. Fees for
NESFAC would come from the selling of the bonds and in being the
general contractor would usually equal approximately 7%. Mr.
Williams stated that NESFAC on the lease purchase consideration
would normally run from 1% to 1/4% less than what a bond issue
might.
Councilman Aday moved that the Meeting be adjourned. Motion was
duly seconded by Councilman Brown and carried by a unanimous vote.
There being no further business Mayor Ridlehuber adjourned the
Meeting at 8:05 p.m. ~~~~~~/~., ~~j
E.V. RIDLEHUBER, Mayor
ATTEST