2003-11-03 Regular - Laserfiche WebLink

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Session 1900 November 3, 2003 AGENDA ITEM #3- Public Hearinq -Wince Review Bonds Industrial Development Mr. Ollendorff announced that a public hearing is scheduled for 7:30 p.m. in these Council Chambers regarding Wince Window Company redevelopment project and bond issue. He read a lengthy statement describing the proposal to meet legal requirements. During the Legislative Docket, an ordinance may be adopted. Mayor Adams declared the public hearing opened at 7:46 p.m. and immediately closed it to no citizen requests to speak. Mr. Lieberman asked Mr. Ollenderff what kind of risk there was to the City in issuing these bonds and was advised there is none. Mr. Ollendorff asked Mr. David Richardson, City Attorney, to comment, and Mr. Richardson responded that all risk with respect to these bonds lay with the company, Winco. Mr. Liberman then asked if there was a catastrophe, who would need to repay the bonds, and Mr. Richardson asserted that responsibility lay with Winco and Commerce Bank, the lender. The City would hold title to the property and insurance would be required with all risk assumed by Winco. Ms. Welsch asked how much tax abatement is involved, and Mr. Richardson advised that according to the redevelopment plan, Winco's existing facility is entitled to twenty-five years of tax abatement, ten years of full abatement, and fifteen years of fifty per cent abatement. The new facility will be entitled to the same: ten years of full abatement and fifteen years of fifty per cent abatement. The existing facility will finish abatement in coming years and pay full taxes on the existing facility. Ms. Welsch asked which Board in the city approved this measure and was advised it was the LCRA. Mr. Richardson stipulated that the redevelopment plan will be shown to be approved by the City Council and not by LCRA. Mr. Ollendorff said the original policy of tax abatement was recommended by the Land Clearance for Redevelopment Authority (LCRA) and by the Industrial Development Authority in the early 1980's for all industrial park areas only. That policy was the abatement spelled out here and the final approval is made by the City Council. This is the format followed by projects in the industrial park. Mr. Munkel asked if this is an expansion, and was told that it is. OATH OF OFFICE: Mary Costantin, who just arrived, was sworn in as a member of the Library Board for a term ending January 21, 2006. COMMENT Mayor Adams noted the recent death of County Executive George "Buzz" Westfall and stressed the importance of the relationship he had with University City as well as his on- going support, particularly in terms of his straightforward and sincere communication. Mayor Adams commented that he will be missed. 3