HomeMy Public PortalAbout12/30/1999 specialCity of Greencastle
City Hall
Four East Walnut Street
Greencastle, Indiana 46135
Pamela S. Jones
Clerk- Treasurer
GREENCASTLE COMMON COUNCIL
SPECIAL SESSION
THURSDAY, DECEMBER 30, 1999 4 :00 P.M. PUTNAM COUNTY LIBRARY
The Greencastle Common Council met in Special Session Thursday, December 30, 1999, 4:00
p.m. at the Putnam County Library. Mayor Michael called the meeting to Order. On the Roll
Call, the following were found to be present: Councilor Roach, Councilor Green, Councilor
Baynard and Councilor Masten. Councilor Hammer was absent. Also present was City Attorney
Laurie Robertson.
Ordinance 1999 -20, An Ordinance of the City of Greencastle, Indiana ( "The City "), Authorizing
the Issuance and Sale of County Economic Development Income Tax Revenue Bonds of the City
Payable Solely from County Economic Development Income Tax Revenues to be Received by the
City in the Principal Amount of Five Hundred Seventy Thousand Dollars ($570,000.00) for the
Purpose of Financing Costs of Various Proposed Economic Development Projects of the City,
Together with Expenses in Connection With the Issuance of Bonds, second reading.
Mayor Michael read a letter sent to her by Attorney J. Frank Durham regarding 'Private
Placement Issue" bonds in the amount of $400,000.00 with a much lower interest rate. Mr.
Durham stated that his clients felt they could save the City some money, but when they found the
bond issue was going to be $570,000.00, the clients withdrew their offer. This letter is attached to
the minutes and made a part of the record.
Mayor Michael read Ordinance 1999 -20 by title only. Motion to approve made by Councilor
Roach, seconded by Councilor Baynard. Vote was unanimous.
Ordinance 1999 -21, An Ordinance of the City of Greencastle, Indiana ( "The City "),
Appropriating the Proceeds Derived from the Sale of Bonds Heretofore Authorized to be Issued
and Designated as "City of Greencastle, Indiana, County Economic Development Income Tax
Revenue Bonds, Series 2000" (Together with Investment Earning Thereon), for the Purpose of
Financing the Costs of Any or All or any Portion of Certain Proposed Economic Development
Projects of the City. Together with Expenses in Connection With the Issuance of Bonds, second
reading. Mayor Michael read by title only. Motion to approve made by Councilor Roach,
seconded by Councilor Masten. Vote was unanimous.
Resolution 1999 -46, A Resolution Establishing a Capital Improvement Plan for County Economic
Development Income Tax, was read by Mayor Michael. Councilor Masten made the motion to
approve as presented, seconded by Councilor Green. Councilor Baynard stated he is disappointed
that the Berry Street Sidewalks are not on the list. CT Jones explained that she did not have any
® cost estimates in order to include them on this list. Vote to approve Resolution 1999 -46 was
unanimous.
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Councilor Masten expressed his heartfelt appreciation to all of his colleagues Mayor, Clerk -
Treasurer, City Attorney, Board of Works etc., and stated he feels there was a lot accomplished in
the past four years and wished the new Council good luck.
Motion to adjourn made by Councilor Masten, seconded by Councilor Green. Vote was
unanimous.
ATTEST:
Pamela S. Jones, Cl r reasurer
-) r'-, r, 'j'Ct ZK�
Nancy A. Mic el, Mayor
LAW OFFICE OF
J. FRANK DURHAM
P. a. SOX 254
Ou..AM eWIDING 11 EAST WAWUT STREET
GREENCASTLE. INDIANA 45135 -0254
PHONE =5) 553381 S
30 December 1999
El
To the Mayor and City Council of Greencastle:
Several weeks ago I made an offer to the Mayor on behalf
of some clients to purchase the entire City Hall $400,000.00
bond issue due in eight years, providing the interest rate was
reasonable.
These clients based their offer in an attempt to help the
City of Greencastle purchase a new City Hall, and at the same time
possibly save the City as much as $25,000.00 in the cost of the
bond issue. This savings would be accomplished by the City issuing
what are called "Private Placement Issue" bonds. Whether the
interest was reasonable depended upon the type of bond issued.
If they were "General Obligation" bonds, they would have a lower
interest rate because they are backed by the entire tax base of
the City of Greencastle. If the bonds issued were "Revenue" bonds,
they would command a higher interest rate because they would not
be backed entirely by the tax base of the City of Greencastle.
In other words, the interest rate of General Obligation bonds is
lower than the interest rate of Revenue bonds.
My clients are of the opinion there is too much difference
between purchasing $400,000.00 of bonds due in eight years, and
the now proposed bond issue of $570,000.00 due in 20 years
required for not only a new City Hall but also for other non -
related expenses.
I therefore regret to inform you that my clients hereby
withdraw their previous offer.
Respectfully,
/ J. Frank Durham
cc: Laurie Robertson, City Attorney