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19890731SCMeeting1 1 1 Tybee Island, Georgia July 31, 1989 The Tybee Island City Council held a special meeting, advertised in advance as required by the Georgia Code, on Monday, July 31, 1989 at 7:30 p.m. at Tybee Island City Hall. Mayor Walter W. Parker presided, with the following members of Council present: Paul Jackson, Jean Davis, Bill Walsh, Jack Youmans, Chris Simon and John O'Neil. The City Administrator and Clerk of Council were both present. The City Attorney was absent. A few citizens were on hand, and Mayor Parker began the meeting by introducing Jeff Walker, also a local citizen, who represents a company known as Atlanta Securities and Investments, Inc., who have sent for consideration a letter of intent. The public was invited to provide input and Gene Glisson spoke to say he's heartily in favor of the pier /pavilion, and hopes that the project can soon be built. No one else chose to speak. The Mayor then explained that the Council will have to meet in executive session due to the questions involving real estate that will be discussed. Councilman Jackson moved that the executive session begin, with Councilman O'Neill seconding; the motion passed unanimously. The first question for Mr. Walker came from Councilman O'Neill who questioned the percentage to be charged as an underwriting fee. This one and one -half percent is, according to Mr. Walker, the normal fee for these services. Mayor Parker then asked about the phrase "expenses to be borne by borrower." Mr. Walker explained that this would pertain to the extra attorneys fees since ASI wants to use its own bonding attorneys in Atlanta, and that the city's use of its attorney(s) would be at our own expense. Mr. Walker then said that the bonding company has two concerns they'd like the city to consider: 1) the building at 1510 strand should not be included in the project, and 2) the restaurant may be too large. It was noted that a good lease, signed, would be protection enough, and any size fac- ility would then be okay. Mr. Walker also explained that the project would probably be partly tax exempt and partly taxable. Councilman O'Neill remarked that the city will have to take a stand on a shortfall situation, indicating that use of parking revenue for this purpose is reasonable. Councilman Youmans stated that the taxpayers are referring to real estate tax when they say they don't want the pier paid for with tax dollars - they don't want their millage raised. 1 1 Tybee Island, Georgia July 31, 1989 Page Two Councilman Solomon said that if any pledge on the part of the city is required, it should be hotel /motel taxes. Next steps were discussed briefly, and Mayor Parker said that these should include: 1) Presenting letter of agreement to Mr. Mahoney and Mr. Forbes for an opinion. 2) Upgrading the feasibility study done by Leonard, Call & Taylor. There were questions about how the proposed bond issue would be marketed; if any are available for individual sale, they'd be offered first at Tybee. It was noted that a certain amount of money may be requested up front, to be reimbursible from the bond issue. It was also noted that the agreement calls for the feasibility study to be done by one of the 'big eight' firms, and that Atlanta Securities & Investments, Inc. would want to use their own bond attorneys, and that any other legal fees would be the responsibility of the city. It was brought up that the 16th Street Jubilee is coming up on August 11, 12, & 13, and that the city has been asked to help. Councilman O'Neill moved that the city fund $400.00 for a band out of its special events fund, and Councilman Jackson seconded. The vote was 5 - 1, with Councilman Youmans casting the dissenting vote. The meeting was adjourned.