Bowling Green TIF Timeline

 

This is a chronology of the City Commission Meetings where the Bowling Green "Signature" TIF was discussed as well as other reports of related events. Click on the date to see the relevant section of Commission Meeting minutes.

 


April 26, 2007: First discussion of “Signature” TIF district with $200 million threshold

 

June 12, 2007: First mention of WKU commitment to lease 200 spaces in downtown parking garage

 

July 17, 2007: First reading of City ordinance establishing TIF

 

July 31, 2007: Second reading of City ordinance establishing TIF

 

August 27, 2007: First reading of an amendment to TIF ordinance which calls for Local Participation Agreement with Warren County

 

September 4, 2007: Second reading of an amendment to TIF ordinance which calls for Local Participation Agreement with Warren County

 

February 5, 2008: Discussion of City investment of $25 million in Revenue Bonds to be issued by Warren County

 

February 7, 2008: Continued discussion of $25 million investment but now as General Obligation Bonds issued by the City directly

 

June 3, 2008: First reading of an ordinance covering the Amended and Restated Local Participation Agreement, the Amended and Restated Master Development Agreement, the Agreement on Sharing of Revenues and the WKU Gateway to Downtown Bowling Green Interlocal Cooperation Agreement.

 

First reading of an ordinance calling for the issuance of $25 million in General Obligation Bonds (failed on 2-3 vote, with Wilkerson, Denning, and Strow against).

 

June 17, 2008: Second reading of an ordinance covering the Amended and Restated Local Participation Agreement, the Amended and Restated Master Development Agreement, the Agreement on Sharing of Revenues and the WKU Gateway to Downtown Bowling Green Interlocal Cooperation Agreement.

Second reading of an ordinance calling for the issuance of $25 million in General Obligation Bonds (passed on 3-2 vote, with Wilkerson and Denning against).

 

June 26, 2008: Governor signs Budget Bill including changes to $200 million threshold for Signature TIFs

 

September 29, 2008: First reading of an ordinance to expand the TIF district (passed 3-2 with Denning and Strow against)

 

October 7, 2008: Second reading of an ordinance to expand the TIF district (passed 3-1 with Denning against and Wilkerson abstaining) and First reading of an amended ordinance for same.

 

October 13, 2008: Second reading of amended ordinance to expand the TIF district (passed 3-1 with Denning against and Wilkerson abstaining)

 

October 31, 2008: WKU Board of Regents approves by a vote of 7-4 to amend the agreement for the garage lease to $250K for 200 spaces for 20 years and $250K for 300 spaces for 10 years. If bonds are paid before the end of 30 years, the lease drops to $1 per year.

 

January 28, 2009: Discussion of changes to the Financing plan

 

February 3, 2009: First reading of an ordinance to amend Financing plan.

 

February 11, 2009: Second reading of an ordinance to amend Financing plan.

 

March, 2009: Efforts to change TIF threshold in the regular session of the Kentucky Legislature fail

 

June, 2009: Kentucky Legislature Special Session to pass budget. Includes modification to TIF threshold from $200M to $100M

 

September 2, 2009: Proposal to move garage from Block 6 to Block 12 discussed at City Commission work session

 

September 16, 2009: First reading of an ordinance agreeing to the move of the garage passes 3-2 on a list-minute addition to the agenda


 

Details

April 26, 2007:

 

Mayor Walker stated the purpose of this special meeting was to consider a Downtown Redevelopment Plan and Memorandum of Understanding and to include discussion of tax increment financing (TIF) directly related to this plan. She read a memorandum received from Western Kentucky University (WKU) President Gary Ransdell, dated April 25, 2007, which declared the University's support of the proposed development and its inclusion of two WKU capital projects—the renovation of Van Meter Hall and the building of North Campus parking lots--within the TIF boundary.

 

Chairman Rick Kelley of the Play Ball! '05 Committee indicated that the redevelopment plan was not just about a ballpark, which accounted for only 10% of the total project, but rather, a development that included hotels, retail and office space, residential properties, a performing arts center ("SKyPAC"), public buildings, related parking and public infrastructure improvements. Mr. Kelley requested a Memorandum of Understanding (MOU) between the City and the project Master Developer (Alliance Corporation) that would provide a minimum of 90% of the revenues generated from an established TIF district to help finance the project. He also requested that the MOU provide for the sale of City owned property between State and College Streets and 7th and 8th Avenues for the

purchase price paid, as well as property purchased for the SKyPAC development with SKyPAC's approval. In addition, Mr. Kelley explained that a lease for the use of 601 State Street as part of the development plan would provide $100,000 per year to the Downtown Redevelopment Authority (DRA). He encouraged acceptance of the financial proposal prepared by Ross, Sinclaire & Associates. Mr. Kelley also clarified the public and private (50/50) investment partnership and reiterated that this project would not specifically be a publicly funded project.

 

Attorney James Parsons, legal consultant for the City regarding economic development, outlined the terms of the proposed MOU, to have an expiration date of June 30, 2007, essentially expressing the City's intent to proceed with the project while the terms of the development agreement were worked out, including such things as the share of the TIF, land sale, rental of 601 State Street property and time commitment to establish the TIF district. He stated that the development, if approved, did not include any full faith and credit commitment by the City. Instead, he explained that the funding generated from the TIF would be used to support the development. He recommended that the TIF district be as small as possible to meet the needs of the development since it required approval by the State, and further suggested the adoption of a development plan. Mr. Parsons responded to questions concerning the issuance of bonds by an entity other than the City, the ability to begin negotiations, the decisions to be made regarding establishment of a TIF district, the absence of financial risk and potential for a credibility risk to the City, a portion of TIF funds to be retained by the City for support of its services, and the unlikelihood of creating a space that would compete with the Sloan Convention Center.

 

Commissioner Wilkerson reiterated that no existing tax monies would be going to the project beyond that of a new increment financing district and that there was no risk of future taxation for the project. Mayor Walker commented about the investment from various entities and the City's investment being very small comparatively, in addition to the potential to jump start redevelopment in the downtown area. Commissioner Strow confirmed that if, at some point in the future, the City was given the ability to adopt a local option sales tax, there would be no obligation to pledge those funds to the project. However, Mr. Parsons noted that any funds generated in the district from an increase in the occupational license fee would be included in the TIF and could be used to pay off any debt early.

 

Jim Duffer of 806 Edgewood Street spoke in opposition to the proposed redevelopment plan and suggested that there were other issues of more importance that the City should be addressing, such as traffic concerns.

 

Executive Director Cheryl Blaine of the Downtown Redevelopment Authority requested clarification regarding any requirement for future commitment to the project if the City approved the MOU. Mr. Parsons indicated that there would not be any future obligation by the City and that this was only the first step in the process for consideration of the proposed plan.

 

In response to a question by Executive Director Vicki Fitch of the Bowling Green Area Convention and Visitors Bureau, City Manager Kevin DeFebbo commented about the maximum size permissible for a conference center that would not compete with the Sloan Convention Center.

 

 

June 12, 2007:

 

Play Ball! '05 Committee Chairman Rick Kelley presented information regarding the downtown redevelopment proposal, including the proposed tax increment financing (TIF) district, estimated capital expenditures of $251,364,950 to be shared between public and private investment, financing plan for issuance of 30-year bonds, anticipated project benefits, and estimated TIF revenues from participation by the State, City and County to be generated over the life of the bonds. Mr. Kelley also noted that 20% of the TIF funds would be retained by the City and County and that a proposed lease of 601 State Street would provide $100,000 to the Downtown Redevelopment Authority, Inc. (DRA). He requested that the City create the TIF district, pledge 80% of the incremental real property and occupational license fee revenues, and authorize the sale of City owned property known as the Otto Office lot, Kirtley building and Center Street (SKyPAC) properties. He further requested that the City move forward with the required steps in making application to the TIF Commission. Mr. Kelley also stated that commitments would be sought from Warren County to issue the project bonds and pledge 80% of its incremental real property tax revenues, and from Western Kentucky University (WKU) to lease 200 parking spaces in a proposed downtown garage for $250,000 a year for fifteen (15) years and at $1 per year for an additional fifteen (15) years, as well as

including the Van Meter Hall renovation and North Campus parking lot construction in the TIF district.

 

In response to questions from the Board of Commissioners, Mr. Kelley clarified that only those funds generated above the existing revenue base in the proposed TIF district would be used for the project and that he had discussed the proposed use and sale of the Center Street properties with the Southern Kentucky Performing Arts Commission (SKyPAC) Executive Director Mary Carpenter.

 

Attorney James Parsons, legal consultant for the City regarding economic development, outlined the terms of the proposed Master Development Agreement, which were fairly consistent with the previously approved Memorandum of Understanding. However, he noted that the Agreement was more concrete in nature and that WKU had been added as a party to the Agreement. Mr. Parsons indicated that the Agreement included the district boundaries for a TIF and would involve the pledge of 80% of the incremental tax revenues to finance projects of approximately $74 million. He also confirmed that the City and County would continue to receive existing revenues generated from the area and that only the incremental increases from the district would be pledged. He explained that

there was a window of opportunity to capture State revenues generated in Bowling Green with the creation of a Signature TIF which would require State approval. He further confirmed that the Agreement designated a Master Developer (Alliance Corporation), but that the City retained approval of any sub-developers brought to the project. Mr. Parsons noted that the Agreement established deadlines for certain steps in the process, such as creation of a TIF district by August 1, 2007 and proof from the Developer that it has sufficient capacity and experience to perform its obligations under the Agreement by September 30, 2007 or thirty (30) days after the TIF Commission determines State participation in the project, whichever comes later. He also explained that a Chapter 58 Corporation would be created by the County to issue the bonds, but that the City and County would not have any obligation toward the payment of the bonds beyond the pledge of TIF revenues.

 

Mr. Parsons responded to several questions from the Board regarding the perceived risk to the City if the development project failed, the financial obligation belonging to the Developer and private investment, the responsibility of the County to create a Chapter 58 Corporation, the ability of the City to buy its property back if the Developer did not perform, the benefit of the development downtown to the school system since it was not subject to the TIF, and the ability to pay the bonds off early and dispose of the TIF district if the development exceeded expectations. Mr. Parsons recommended the

approval of the Agreement.

 

Mary Carpenter, SKyPAC Executive Director, stated that the SKyPAC Board had not agreed to the sale of the Center Street properties at this time and that further discussions were needed with Mr. Kelley.

 

Cheryl Blaine, Executive Director for DRA, stated that the DRA Board was not going to accept the lease of 601 State Street at this time. She indicated that the $100,000 per year lease amount was below market value and that there may be restrictions to the use of the building because it was purchased and renovated with State grant funds. She requested to be included in the discussions.

 

Mr. Parsons confirmed that neither of the two property issues affected the approval of the Agreement since the transactions were contingent upon the respective parties approval.

 

Once all discussion concluded, motion was made by Nash and seconded by Strow to add Municipal Order No. 2007 ­197 to the agenda for consideration.

 

With no discussion, a roll call vote was taken.
ROLL CALL:

Voting Yea: Strow, Wilkerson, Denning, Nash and Walker

Voting Nay: None

 

July 17, 2007:

 

ORDINANCE NO. BG2007 – 33 First Reading)

ORDINANCE ESTABLISHING DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT

 

Title and summary of Ordinance No. BG2007 - 33 was read by the Assistant City Manager/City Clerk. Motion was made by Wilkerson and seconded by Denning for first reading of said Ordinance. DeFebbo remarked that there had been several discussions at previous meetings regarding a proposed downtown redevelopment plan. City Attorney Gene Harmon explained the difference between previous actions taken by the Board and the item up for consideration at this time. He further explained that once this ordinance was adopted, the next step would be to go to the state for consideration of participation in the tax increment financing (TIF) district, in addition to approval by Warren County. He indicated that Western Kentucky University had already approved its participation in the development. Mr. Harmon reconfirmed that there was no financial obligation of the City with this development plan. Mayor Walker asked for additional discussion, and with none, a roll call vote was taken.

 

ROLL CALL: Voting Yea: Wilkerson, Denning, Strow and Walker

Voting Nay: None

 

First reading of Ordinance No. BG2007 – 33 was approved by unanimous vote. Mayor Walker announced that there would be a special meeting held on July 31, 2007 for consideration of second reading of this ordinance.

 

July 31, 2007:

 

Mayor Walker began the public hearing for the purpose of discussing the proposed ordinance establishing a development area and tax increment financing (TIF) district for the redevelopment of an approximately 40-acre site in downtown Bowling Green in cooperation with Warren County and Western Kentucky University with Alliance Corporation acting as the master developer. Attorney James Parsons, legal consultant for the City regarding economic development, provided an overview of the proposed downtown redevelopment plan involving a comprehensive mixed use economic
redevelopment area comprised of residential, office, hotel, restaurant and other commercial components, with certain public elements that include a baseball stadium, parking garage, a performing arts center and other public infrastructure improvements. He outlined the steps required in establishing a TIF district to financially support the development and the requirement to apply to the state for its participation along with the City and County.

 

Amy McGowan, a principle owner of historic Taylor's Chapel located at 314 East 7th Avenue, expressed concern with the Chapel being surrounded by, but not included in, the proposed development. She suggested that the property be purchased and included in the redevelopment plan. Comm. Denning recommended that Ms. McGowan contact the developers directly to have such discussions.

 

Professional Sculptor Donnie Firkins of 238 Freestone Court, representing forty local artists, asked if any funds would be set aside for the public arts with this project. Mayor Walker indicated that she was not aware of anything included in the documents, but stated that it could be discussed. Mr. Firkins stated that he would like to see a percentage of funds, such as 1% of the TIF, set aside for visual arts as part of the development. Mayor Walker suggested that Mr. Firkins contact the developer regarding such involvement in the project.

 

ORDINANCE NO. BG2007 – 33 Second Reading

ORDINANCE ESTABLISHING DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT

 

ORDINANCE ESTABLISHING A DEVELOPMENT AREA IN

DOWNTOWN BOWLING GREEN RELATING TO A COMPREHENSIVE MIXED USE REDEVELOPMENT AREA COMPRISED OF RESIDENTIAL, OFFICE AND COMMERCIAL COMPONENTS AND INCLUDING CERTAIN PUBLIC ELEMENTS, INCLUDING A BASEBALL STADIUM, PARKING GARAGE AND

OTHER INFRASTRUCTURE IMPROVEMENTS; APPROVING A LOCAL PARTICIPATION AGREEMENT WITH WARREN COUNTY, KENTUCKY; ESTABLISHING A SPECIAL FUND;  DESIGNATING AN AGENCY FOR THE

OVERSIGHT, ADMINISTRATION AND IMPLEMENTATION OF THIS

ORDINANCE; AND TAKING OTHER APPROPRIATE ACTIONS

 

Title and summary of Ordinance No. BG2007 - 33 was read by the Assistant City Manager/City Clerk. Motion was made by Strow and seconded by Denning for second reading of said Ordinance. Attorney James Parsons reiterated that there was no financial risk to the City and that the City was only pledging a portion of the incremental revenues received from the TIF district. Comm. Wilkerson noted that with the TIF structure, 80% of state generated revenues in the district would stay in Bowling Green. Mayor Walker commented about the ability to speed up the redevelopment of downtown with this project. With no further discussion, a roll call vote was taken.

 

ROLL CALL:

Voting Yea: Denning, Nash, Strow, Wilkerson and Walker

Voting Nay: None

Ordinance No. BG2007 - 33 was adopted by unanimous vote.

 

August 27, 2007:

 

ORDINANCE NO. BG2007 – 38 (First Reading)

ORDINANCE ESTABLISHING DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT

AN ORDINANCE AMENDING ORDINANCE NO. BG2007-33,

WHICH IS AN ORDINANCE ESTABLISHING A DEVELOPMENT

AREA IN DOWNTOWN BOWLING GREEN RELATING TO A

COMPREHENSIVE MIXED USE REDEVELOPMENT AREA

COMPRISED OF RESIDENTIAL, OFFICE AND COMMERCIAL

COMPONENTS AND INCLUDING CERTAIN PUBLIC ELEMENTS,

INCLUDING A BASEBALL STADIUM, PARKING GARAGE AND

OTHER INFRASTRUCTURE IMPROVEMENTS; APPROVING A

LOCAL PARTICIPATION AGREEMENT WITH WARREN

COUNTY, KENTUCKY; ESTABLISHING A SPECIAL FUND;

DESIGNATING AN AGENCY FOR THE OVERSIGHT,

ADMINISTRATION AND IMPLEMENTATION OF THIS

ORDINANCE; AND TAKING OTHER APPROPRIATE ACTIONS

 

Title and summary of Ordinance No. BG2007 - 38 was read by the Assistant City Manager/City Clerk. Motion was made by Wilkerson and seconded by Strow for first reading of said Ordinance. DeFebbo reviewed the recommended amendments to the previously approved Ordinance No. BG2007 – 33, which came as a result of discussions with state officials, recommendations from consultants and the development of more accurate information regarding the project investment. He also noted that the project would be referred to as the “WKU Gateway to Downtown Bowling Green”

and that the foot print of the tax increment financing (TIF) district was slightly adjusted. There was discussion regarding the dates included in the Local Participation Agreement, the need to move quickly to meet certain deadlines with filing an application with the Kentucky Finance Cabinet and the continued commitment to relocate a baseball team to the area. Mayor Walker asked for additional discussion, and with none, a roll call vote was taken.

 

ROLL CALL: Voting Yea: Wilkerson, Denning, Nash, Strow and Walker

Voting Nay: None

First reading of Ordinance No. BG2007 - 38 was approved by unanimous vote.

 

September 4, 2007:

 

ORDINANCE NO. BG2007 – 38 (Second Reading)

ORDINANCE ESTABLISHING DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT

AN ORDINANCE AMENDING ORDINANCE NO. BG2007-33,

WHICH IS AN ORDINANCE ESTABLISHING A DEVELOPMENT

AREA IN DOWNTOWN BOWLING GREEN RELATING TO A

COMPREHENSIVE MIXED USE REDEVELOPMENT AREA

COMPRISED OF RESIDENTIAL, OFFICE AND COMMERCIAL

COMPONENTS AND INCLUDING CERTAIN PUBLIC ELEMENTS,

INCLUDING A BASEBALL STADIUM, PARKING GARAGE AND

OTHER INFRASTRUCTURE IMPROVEMENTS; APPROVING A

LOCAL PARTICIPATION AGREEMENT WITH WARREN

COUNTY, KENTUCKY; ESTABLISHING A SPECIAL FUND;

DESIGNATING AN AGENCY FOR THE OVERSIGHT,

ADMINISTRATION AND IMPLEMENTATION OF THIS

ORDINANCE; AND TAKING OTHER APPROPRIATE ACTIONS

 

Title and summary of Ordinance No. BG2007 - 38 was read by the Assistant City Manager/City Clerk. Motion was made by Wilkerson and seconded by Strow for second reading of said Ordinance. Mayor Walker asked for discussion, and with none, a roll call vote was taken.

 

ROLL CALL: Voting Yea: Denning, Nash, Strow, Wilkerson and Walker

Voting Nay: None

Ordinance No. BG2007 - 38 was adopted by unanimous vote.

 

February 5, 2008:

 

DISCUSSION

 

The Board of Commissioners discussed the proposal regarding the downtown  development project and Tax Increment Financing (TIF) District. Bart Darrell, a member of the Warren County Downtown Economic Development Authority, Inc. (also known as the Chapter 58 Corporation), reviewed the proposed financing plan which included participation by the City to secure the bond debt of $25 million in Revenue Bonds to be issued by Warren County. He also outlined the potential revenue sources in Phase I of the project that could be dedicated to the repayment of those bonds, such as: a) $748,500 for the purchase of City-owned land, b) 100% of the existing City taxes generated in the district, c) 20% of the incremental City taxes generated in the district, and d) 100% of the revenue from the operation of the ballpark and garage. In addition, Chairman Rick Kelley of the Play Ball! '05 Committee, indicated that upon completion of Phase II financing, the City would receive an additional $311,000 for the purchase of City-owned land, the WKU garage lease payment of $250,000 per year for the remainder of the 30 years or until the City backed bonds were paid in full, and approximately $210,000 per year from a combination of ballpark lease and naming rights fees. Mr. Darrell urged support of the project to help bring a better quality of living to the community.

 

In response to some questions by the Board about the City backed bonds, Mr. Kelley clarified that under this proposal the City would be responsible to cover any deficiencies in the bond payments if revenues generated from the project were not enough. There was also discussion about possible worse case scenario concepts. Comm. Strow indicated that the Board needed to consider the costs and benefits of doing one project over another, such as Shive Lane Extension and/or Old Morgantown Road Expansion

 

Comm. Denning expressed concerns about the project, whether or not the City should be put in this position for the next 30 years with other issues that the City was already facing. He stated that it was the Board's responsibility to look out for all citizens of the community.

 

Mayor Walker voiced frustration with having a short amount of time available, from 4:00 p.m. that afternoon to the discussion that night, to decipher all the recently proposed changes to the plan. She indicated her support for the redevelopment of downtown, but that there was a need to protect the City with guarantees for Phase II development. In the current light of financial conditions the City was already facing, she suggested that assurances and signed agreements were needed from sub-developers with commitments for financial backing of the private investment.

 

Attorney Jim Parsons, legal consultant for the City regarding economic development, explained the risks that the Board should consider, such as financial risk and risk of little or no development occurring. He confirmed that any assurances that could be made to ensure private development would take place should provide more security for the City. He also reviewed the variables of a Blighted TIF which restricted the use of state revenues.

 

Comm. Nash commented about the inherent risks with investing in a project which might not get completed. He specified that generally investments in development projects were made in the hopes of making improvements that would spur other development, including private investment.

 

City Manager DeFebbo outlined the issues that the Board needed to consider, including making a determination of how much risk the City would be willing to accept and how that risk could be reduced. Chief Financial Officer Jeff Meisel detailed the potential impact of the annual debt service on a $25 million bond issue. He also expressed concern regarding the point at which the City might need to make a decision to consider a Blighted TIF if the Signature TIF could not be achieved.

 

Comm. Strow maintained that the City had only one shot at having a Signature TIF and that this was it. However, he too was concerned about a "Plan B" if it did not work and whether or not the City was willing to put money into the downtown. Comm. Denning pointed out that if this project did not go through, then there would be other options that could be considered, such as smaller development projects.

 

There was discussion about having a special meeting on Thursday, February 7, 2008 to continue the dialogue about the City's participation with financing a portion of the project. There was consensus among the Board of Commissioners to allow Mr. Parsons to work with the developers and to get commitments. Comm. Wilkerson pointed out that those commitments should have been provided all along and that they should have been provided before today.

 

Mayor Walker opened the floor for public comments. Chris Thompson of 1311 Euclid Avenue and James Cook of 177 Southland Drive spoke in support of the project and its positive impact for downtown, as well as the community. Joan Clark of 4373 Belle Rive Circle expressed concern that the Board was being rushed to make a decision about a 30 year commitment and that the Board should not allow the developers to pressure them.

 

February 7, 2008:

 

DOWNTOWN REDEVELOPMENT PROPOSAL AND TAX INCREMENT FINANCING (TIF) DISTRICT

 

The Board of Commissioner continued the discussion, which started at its previous meeting on Tuesday, February 5, 2008, regarding the City's involvement in the proposed downtown redevelopment project (WKU Gateway to Downtown Bowling Green), particularly a request by Warren County Economic Development Authority, Inc. and other developers for a commitment from the City to participate in the financing of the project. Attorney Jim Parsons, legal consultant for the City regarding the proposed redevelopment, outlined the proposal and the ways to address some of the financial risk to the City. He reported that since Tuesday's discussion, the City's financial advisors and bond counsel recommended that the City directly issue General Obligation Bonds instead of backing Warren County issued bonds. He explained that this would provide the City with more direct control over the use of those funds. Mr. Parsons also stated that the $25 million GO bond issue would be restricted for use on public infrastructure costs and not used to purchase land. This would assist the City in recovering state funds if this project was approved later as a Mixed-Use TIF area. He further stated that there would need to be revisions made to the Local Participation Agreement to coincide with the changes to the proposal and the City's financial involvement.

 

Play Ball! '05 Committee Chairman Rick Kelley, who was also representing the private developers, commented about the discussions he had with sub-developers as requested by the Board at the previous meeting. He expressed appreciation to the Board for its time and consideration of the issue. Mr. Kelley responded to questions about the financing and land purchase for the ballpark.

 

Mary Cohron, Chairperson of the Warren County Economic Development Authority, Inc. (also known as the Chapter 58 Corporation), addressed the Board. She stated that the authority would take very seriously the responsibility of handling the City's dollars in this project and would work hand-in-hand with the City. She also commented about the investment that Citizens First Bank had already committed to the project.

 

Howard Poindexter, a Bowling Green resident, expressed concerns about the City's financial involvement in the project and suggested that there should be more private investors involved. He also stated that it was not fair to the general public to obligate the City in developing a project that had no guarantee of succeeding.

 

There was further discussion about the types of sufficient assurances that could be provided to the City regarding Phase II of the project moving forward before bonds would be issued by the City. Mr. Parsons explained that the structure for how the money would be issued and spent would need to be determined based on the outcome of the Board's decision to proceed with financial assistance. In addition, he recommended that an interlocal agreement be executed between the City and the Authority. He confirmed that the interest on the bonds would be capitalized. Rick Delaney of Morgan Keegan, the financial advisor for the City, cautioned the Board about the potential for a portion of the bond issue being taxable based on its proposed use. Chief Financial Officer Jeff Meisel commented about the true debt cost over a 30 year period. He also cautioned the Board regarding the potential of having to take a closer look at, and possibly reprioritize, other projects that had been discussed and planned depending on the Board's decision at this meeting. In an effort to address some of the risks, the Board agreed to modify language in a draft Municipal Order to define sufficient assurances as "letters from reputable bond underwriters expressing serious interest to purchase the bonds when offered for sale."

 

Gary Bridges of Cumberland Ridge Way and Joe Natcher of 395 St. Joseph Lane both spoke in support of the redevelopment plan and how it could benefit the community.

 

Once discussion concluded, motion was made by Nash, seconded by Strow, to add  municipal Order No. 2008 ­ 32 with the modified language to the agenda for formal consideration by the Board.


A roll call vote was taken.

ROLL CALL:

Voting Yea: Nash, Strow, Wilkerson, Denning and Walker

Voting Nay: None

Motion to add Municipal Order No. 2008 ­ 32 to the agenda for consideration was approved by unanimous vote.

 

June 3, 2008:

 

DISCUSSION OF DOWNTOWN REDEVELOPMENT PROPSAL AND TAX INCREMENT FINANCING (TIF) DISTRICT

 

Attorney Jim Parsons, the City's economic development legal consultant, provided an overview regarding some issues of concern discussed at the May 6, 2008 work session and the resolution to those concerns. He outlined the various documents which required approval by the Board of Commissioners, including the Amended and Restated Local Participation Agreement, the Amended and Restated Master Development Agreement, the Agreement on Sharing of Revenues and the WKU Gateway to Downtown Bowling Green Interlocal Cooperation Agreement. Mr. Parsons confirmed that the City would still be responsible for approving subdeveloper agreements, but otherwise the Warren County Downtown Economic Development Authority ("Authority") would act on behalf of the City throughout the development.

 

In addition, there was discussion about the Master Developer Services and Compensation Agreement between Alliance Corporation and the Authority, which was an exhibit to the Amended and Restated Master Development Agreement. Mayor Walker and Comm. Denning expressed concern with the Authority paying fees for the development of Circus Square since that project was already done. Comm. Strow suggested that more incentive should be emphasized for the developer to reach the $200 million investment versus $150 million in order for the State to provide 80% of its incremental taxes back to the TIF District. Attorney Jamie Cox, representing Alliance Corporation, responded to questions about the compensation agreement and stated that she would discuss the Board's concerns with her client and the Authority. Since the City was not specifically involved with the compensation agreement and it was included as an exhibit, Mr. Parsons requested that the Board move forward with first reading of an ordinance to approve all the other pertinent agreements.

 

Regarding the issue of providing parking spaces to the Southern Kentucky Performing Arts Center (SKyPAC) in exchange for the sale of some property to the developer of the ballpark, Attorney Charles English, representing SKyPAC, pointed out that the City was obligated by a previously approved contract to purchase all of the necessary property and to turn it over to SKyPAC. He inquired about the City's response to a letter from SKyPAC sent to Mr. DeFebbo asking for clarification on this issue. Mayor Walker explained that there were two possible scenarios for consideration: 1) selling the land to the developer and turning the money over to SKyPAC; or 2) selling the land to the developer, keeping the money and letting SKyPAC park for free. Mr. English disagreed that there were only two possible options and said that his clients were willing to take part in any discussions.

 

Commissioners Denning and Wilkerson asserted that the City should complete its purchase of the properties as stated in the contract and turn them over to SKyPAC, at which point SKyPAC could decided whether or not to sell some of the property for the development of the ballpark. Comm. Nash also agreed, however, he was also willing to negotiate a change in the contract if SKyPAC was interested. Comm. Strow expressed concern over the possible delay in the project if the issue was not resolved quickly. Mr. DeFebbo agreed to meet with SKyPAC regarding the issue and to report back to the Board.

 

ORDINANCE NO. BG2008 ­ 30 (First Reading)

ORDINANCE APPROVING DOCUMENTS RELATED TO THE WKU GATEWAY TO DOWNTOWN BOWLING GREEN DEVELOPMENT AREA ORDINANCE APPROVING AN AMENDED AND RESTATED LOCAL PARTICIPATION AGREEMENT, THE WKU GATEWAY TO DOWNTOWN BOWLING GREEN

INTERLOCAL COOPERATION AGREEMENT, THE AMENDED AND RESTATED
MASTER DEVELOPMENT AGREEMENT AND THE AGREEMENT ON THE SHARING OF REVENUES, ALL RELATED TO THE ESTABLISHMENT, FINANCING AND IMPLEMENTATION OF A DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT KNOWN AS THE WKU GATEWAY TO DOWNTOWN BOWLING GREEN

 

Title and summary of Ordinance No. BG2008 - 30 was read by the Assistant City Manager/City Clerk. Motion was made by Nash and seconded by Strow for first reading of said Ordinance. Comm. Strow agreed that there was not much time to review the documents prior to consideration; however, since there was two weeks between first and second reading of the ordinance, he was comfortable with moving forward. He declared that he reserved the right to vote no at second reading if he did not agree with the provisions once given the opportunity to review in more detail. Comm. Nash concurred with Comm. Strow and stated that the only vote that officially counted was the one taken at second reading of the ordinance.

 

Comm. Wilkerson once again voiced his frustration with the amount of documents received at the last minute. Mayor Walker commented that none of the information was brand new and that the Board had been kept appraised of the developments, including having discussed in detail on a number of occasions. With no further discussion, a roll call vote was taken.

ROLL CALL:

Voting Yea: Nash, Strow and Walker

Voting Nay: Wilkerson and Denning

First reading of Ordinance No. BG2008 ­ 30 was approved by majority vote.

 

ORDINANCE NO. BG2008 – 31 (First Reading)

ORDINANCE PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS AN ORDINANCE OF THE CITY OF BOWLING GREEN,

KENTUCKY AUTHORIZING THE ISSUANCE OF (I) GENERAL

OBLIGATION PUBLIC PROJECT BONDS, SERIES 2008A IN THE

AGGREGATE PRINCIPAL AMOUNT OF $25,000,000 FOR THE

PURPOSE OF FINANCING THE COSTS OF THE CONSTRUCTION

AND INSTALLATION OF A BASEBALL STADIUM AND

RELATED APPROVED PUBLIC INFRASTRUCTURE COSTS (II)

GENERAL OBLIGATION PUBLIC PROJECT BONDS, SERIES

2008B IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO

EXCEED $7,200,000 FOR THE PURPOSES OF FINANCING THE

COSTS OF THE ACQUISITION, CONSTRUCTION,

INSTALLATION AND EQUIPPING OF THE GREENWOOD FIRE

STATION AND THE EXPANSION OF FIRE DEPARTMENT

HEADQUARTERS AND THE AIRPORT FIRE STATION;

APPROVING FORMS OF BONDS; AUTHORIZING DESIGNATED

OFFICERS TO EXECUTE AND DELIVER THE BONDS;

AUTHORIZING AND DIRECTING THE FILING OF NOTICE WITH

THE STATE LOCAL DEBT OFFICER; PROVIDING FOR THE

PAYMENT AND SECURITY OF THE BONDS; CREATING BOND

PAYMENT FUNDS AND CONSTRUCTION FUNDS;

AUTHORIZING ACCEPTANCE OF THE BID OF THE BOND

PURCHASERS FOR THE PURCHASE OF THE BONDS

FOLLOWING THE ADVERTISED SALE OF THE BONDS; AND

REPEALING INCONSISTENT ORDINANCES

 

Title and summary of Ordinance No. BG2008 - 31 was read by the Assistant City Manager/City Clerk. Motion was made by Nash and seconded by Strow for first reading of said Ordinance. In response to concern regarding the combining of the TIF related bonds with Fire improvement bonds, Chief Financial Officer Jeff Meisel explained the benefits with issuing the bonds together. Comm. Wilkerson stated that he supported the Fire improvement bonds, but did not support the $25,000,000 issue for the ballpark. Comm. Denning concurred and stated he too would vote no based on the two issues being lumped together. Comm. Strow indicated that he could not commit to supporting the ballpark issue at this time since he did not have sufficient information. Following the

discussion, a roll call vote was taken.

 

ROLL CALL: Voting Yea: Nash and Walker

Voting Nay: Wilkerson, Denning and Strow

First reading of Ordinance No. BG2008 - 31 failed by majority vote.

 

June 17, 2008:

 

ORDINANCE NO. BG2008 – 30 (Second Reading As Amended)

ORDINANCE APPROVING DOCUMENTS RELATED TO THE WKU GATEWAY TO DOWNTOWN BOWLING GREEN DEVELOPMENT AREA

ORDINANCE APPROVING AN AMENDED AND RESTATED

LOCAL PARTICIPATION AGREEMENT, THE WKU GATEWAY

TO DOWNTOWN BOWLING GREEN INTERLOCAL

COOPERATION AGREEMENT, THE AMENDED AND RESTATED

MASTER DEVELOPMENT AGREEMENT AND THE AGREEMENT

ON THE SHARING OF REVENUES, ALL RELATED TO THE

ESTABLISHMENT, FINANCING AND IMPLEMENTATION OF A

DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT

KNOWN AS THE WKU GATEWAY TO DOWNTOWN BOWLING

GREEN

 

Title and summary of Ordinance No. BG2008 - 30 was read by the Assistant City Manager/City Clerk. Motion was made by Nash and seconded by Strow for second reading of said Ordinance. Comm. Wilkerson asked if the City had been given an indication about the end of the incentive program with the Master Developer. Rick Kelley, responding on behalf of Alliance Corporation, stated that Alliance was willing to set an ending date to the Master Developer Services and Compensation Agreement (Exhibit N to the Amended and Restated Master Development Agreement) at either December 31, 2014 which was the date that the Signature TIF had to be accomplished, or if that date was extended whatever the new date was, or a $300 million capital  expenditure level, whichever came first.

 

Upon further clarification regarding the ability to amend the attachment, which agreement was not originally approved by the City, City Attorney Gene Harmon confirmed that it was not a substantive change to the ordinance. Motion was made by Wilkerson and seconded by Strow to amend the Master Developer Services and Compensation Agreement, as attached to the Amended and Restated Master Development Agreement in Exhibit N, to establish an ending date to the compensation term for the Master Developer as previously stated by Rick Kelley. A roll call vote was taken regarding the amendment to Exhibit N.

 

ROLL CALL: Voting Yea: Nash, Strow, Wilkerson, Denning and Walker

Voting Nay: None

 

Motion to amend Exhibit N (Master Developer Services and Compensation Agreement) of the Amended and Restated Master Development Agreement to incorporate an end to the compensation term was approved by unanimous vote. With no additional discussion, a roll call vote was taken on second reading of the Ordinance.

ROLL CALL: Voting Yea: Nash, Strow and Walker

Voting Nay: Wilkerson and Denning

Ordinance No. BG2008 - 30 was adopted by majority vote.

 

ORDINANCE NO. BG2008 – 31

(Second Reading)

ORDINANCE PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS AN ORDINANCE OF THE CITY OF BOWLING GREEN,

KENTUCKY AUTHORIZING THE ISSUANCE OF (I) GENERAL

OBLIGATION PUBLIC PROJECT BONDS, SERIES 2008A IN THE

AGGREGATE PRINCIPAL AMOUNT OF $25,000,000 FOR THE

PURPOSE OF FINANCING THE COSTS OF THE CONSTRUCTION

AND INSTALLATION OF A BASEBALL STADIUM AND

RELATED APPROVED PUBLIC INFRASTRUCTURE COSTS (II)

GENERAL OBLIGATION PUBLIC PROJECT BONDS, SERIES

2008B IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO

EXCEED $7,200,000 FOR THE PURPOSES OF FINANCING THE

COSTS OF THE ACQUISITION, CONSTRUCTION,

INSTALLATION AND EQUIPPING OF THE GREENWOOD FIRE

STATION AND THE EXPANSION OF FIRE DEPARTMENT

HEADQUARTERS AND THE AIRPORT FIRE STATION;

APPROVING FORMS OF BONDS; AUTHORIZING DESIGNATED

OFFICERS TO EXECUTE AND DELIVER THE BONDS;

AUTHORIZING AND DIRECTING THE FILING OF NOTICE WITH

THE STATE LOCAL DEBT OFFICER; PROVIDING FOR THE

PAYMENT AND SECURITY OF THE BONDS; CREATING BOND

PAYMENT FUNDS AND CONSTRUCTION FUNDS;

AUTHORIZING ACCEPTANCE OF THE BID OF THE BOND

PURCHASERS FOR THE PURCHASE OF THE BONDS

FOLLOWING THE ADVERTISED SALE OF THE BONDS; AND

REPEALING INCONSISTENT ORDINANCES

 

Title and summary of Ordinance No. BG2008 - 31 was read by the Assistant City Manager/City Clerk. Motion was made by Strow and seconded by Nash for second reading of said Ordinance. Mayor Walker asked for discussion, and with none, a roll call vote was taken.

ROLL CALL: Voting Yea: Nash, Strow and Walker

Voting Nay: Wilkerson and Denning

Ordinance No. BG2008 – 31 was adopted by majority vote. Comm. Denning stated that his vote had nothing to do with the Fire Department bond issue which he supported, instead it was against the $25 million ballpark issue.

 

June 26, 2008:

HB 3/FN (BR 12) - T. Thompson, R. Palumbo, M. Denham, B. Housman, M. King, D. Pasley, S. Riggs, T. Riner AN ACT relating to economic development and making an appropriation therefor. Amend and create various sections of Subchapter 34 of KRS Chapter 154 to expand the application of incentives available; allow recovery of up to 100 percent of eligible skills upgrade training costs; allow an advance disbursement; create a new subchapter of KRS Chapter 154 and a new section in KRS Chapter 141 to replace existing economic development programs in Subchapters 22, 23, 24, and 28 of KRS Chapter 154; create a new section of KRS Chapter 141 to establish an income tax credit for tuition and other educational expenses paid by a taxpayer who is a party to the Metropolitan College Consortium Agreement as of the effective date of the Act; create new sections of KRS Chapter 154 to date-limit the provisions of the Kentucky Enterprise Initiative Act and establish a new incentive program substantially the same as the Kentucky Enterprise Initiative Act, with the addition of the purchase of data processing equipment under the $5 million cap; create new sections of Subchapters 22, 23, 24, and 28 of KRS Chapter 154 to date-limit the application of those subchapters to projects approved prior to the effective date of the Act; create a new section of KRS Chapter 141 to establish a cross-walk for the historic preservation tax credit provisions; amend KRS 171.396 and 171.397 to increase the historic preservation incentive cap from $3 million to $5 million, make the credit refundable, and make technical corrections; create a new section of KRS Chapter 139 to establish a sales and use tax refund for companies who purchase and install communication systems and computer systems; amend KRS 148.851, 148.853, 148.855, 148.857, 148.859, and 139.770 to amend language relating to lodging facilities and make technical corrections; create a new section of KRS 148.851 to 148.860 to require enhanced reporting; create new sections of KRS Chapters 148 and 141 to establish a refundable income tax credit for the production of films and establish the Kentucky Film Commission; amend KRS 45A.690, 45A.695, 45A.705, and 45A.725 to require film credit tax incentive agreements to be reviewed by the Government Contract Review Committee; create a new section of KRS Chapter 176 to provide that railroad crossings, railroad spurs that access industrial parks, and shortline railroads at or near intersections with roadways be considered roads; establish a new section of KRS 148.851 to 148.860 to provide incentives for legacy expansion projects; amend KRS 65.7043, 65.7045, 65.7049 and 65.7053 to expand the type of properties that qualify to be included in a tax increment financing development area; amend KRS 65.680 and create a new section of KRS 65.680 to 65.699 to extend the termination date for certain local tax increment financing projects; amend KRS 138.510 to revise pari-mutuel tax incentives for an international horse racing event held in Kentucky; provide that the minimum capital investment for signature tax increment financing projects with agreements executed prior to January 1, 2008, can be reduced from $200 million to $100 million; amend 2008 Kentucky Acts Chapter 127, Part II, Capital Projects Budget; J. Postsecondary Education; 8. University of Kentucky, to adjust project authorizations; create a new subchapter of KRS Chapter 154 and corresponding new sections in KRS Chapter 141 to establish small business economic development incentives; authorize the transfer of land known as the Glendale site for use for a manufacturing facility for lithium-ion battery cells and supporting or associated facilities; create a new section of KRS Chapter 141 to establish a railroad maintenance and improvement tax credit for Class II and Class III railroads; create a new section of KRS Chapter 141 to establish a railroad expansion credit for corporations or railway companies that expand or upgrade railroad track roadbeds, bridges, and related track structures to accommodate the transport of fossil energy resources or biomass resources; amend KRS 230.752, 154.20-033, 141.0205, and 141.415 to conform; repeal KRS 141.416, 154.34-030, 154.34-040, 154.34-050, and 154.34-060. Jun 15-introduced in House; to Appropriations & Revenue (H); taken from Appropriations & Revenue (H); 1st reading; returned to Appropriations & Revenue (H); posting waived Jun 16-taken from Appropriations & Revenue (H); 2nd reading; returned to Appropriations & Revenue (H); reported favorably, to Rules with Committee Substitute ; placed in the Orders of the Day for Wednesday, June 17, 2009 Jun 17-floor amendments (1) and (2) filed to Committee Substitute ; 3rd reading; floor amendment (1) defeated ; passed 97-1 with Committee Substitute, floor amendment (2) ; received in Senate; taken from Committee on Committees (S); 1st reading; returned to Committee on Committees (S) Jun 18-to Appropriations & Revenue (S); taken from Appropriations & Revenue (S); 2nd reading; returned to Appropriations & Revenue (S) Jun 19-reported favorably, to Rules with Committee Substitute, committee amendments (1) and (2-title) ; posted for passage in the Regular Orders of the Day for Friday, June 19, 2009; 3rd reading, passed 32-0-1 with Committee Substitute, committee amendments (1) and (2-title) Jun 22-received in House; posted for passage for concurrence in Senate Committee Substitute, committee amendments (1) and (2-title); House refused to concur in Senate Committee Substitute, committee amendments (1) and (2-title) ; received in Senate Jun 23-posted for passage for receding from Senate Committee Substitute, committee amendments (1) and (2-title); Senate refused to recede from Committee Substitute, committee amendments (1) and (2-title) ; Conference Committee appointed in House and Senate Jun 24-Conference Committee report filed in House and Senate; posted for passage for consideration of Conference Report ; Conference Committee report adopted in Senate; Bill passed 35-0; received in House; posted for passage for consideration of Conference Report ; Conference Committee report adopted in House; Bill passed 86-10; enrolled, signed by each presiding officer; delivered to Governor Jun 26-signed by Governor

For your reference: http://www.lrc.ky.gov/record/09SS/HB3.htm

September 29, 2008:

 

DISCUSSION

 

There was a discussion regarding a proposed expansion to the WKU Gateway to Downtown Bowling Green Development Area and Tax Increment Financing (TIF) District, which included amendments to the Amended and Restated Local Participation Agreement executed by the City, County and Warren County Downtown Economic Development Authority, Inc. (Authority). Comm. Denning voiced his concern with receiving revised documents late that afternoon and being asked to make a decision on it that day.

 

Attorney Kevin Brooks, counsel for the Authority, reviewed the proposed changes to the Local Participation Agreement (now referred to as LPA#2) which included some cleaning up of the language and provided for the expansion. He also responded to questions about the various changes in the Financing Plan (Exhibit D to LPA#2).

 

Comm. Strow said he liked the expansion because it would provide State revenues back that much sooner, but he was concerned about the new public projects included in the Financing Plan of over $20 million in TIF-Assessment Bonds issued by Warren County with a proposed issue date of June 2013. Those public projects included the construction of a roundhouse at Rail Museum, retrofit of existing building to house Kentucky Transportation Museum, construction of a Whitewater Park, construction of Green Parks and construction of Indoor Sports Facility. He stated the City should not be adding new debt that would jump in front of the existing debt and allow someone else to make those decisions instead of the City. He further stated he wanted to see a provision included that would allow revenues from the expansion district to help pay off the debt from the original district, if the expansion was performing well. Chief Financial Officer Jeff Meisel agreed that if the expansion district took off, the current proposal would leave the original district and the City’s General Obligation (GO) bond debt behind. Comm. Denning also expressed his concern that there was no provision to get the City’s debt paid off quicker.

 

Rick Kelley, representing the private developers, explained that the expansion got the capital investment to the $200 million threshold (Signature TIF status) sooner; however, there was no overlap of revenues from the original to the expanded district. He further explained that it was designed this way in order to provide a dedicated revenue stream to support the issuance of bonds for the expanded district.

 

When asked if he had any questions or comments, Comm. Wilkerson announced that he had just learned that afternoon of a business partner’s involvement with a TIF development project, and therefore, he would abstain from discussions and any voting to avoid the appearance of impropriety.

 

City Manager Kevin DeFebbo stated he supported the expansion of the TIF district. He cautioned the Board to carefully consider the accuracy of the local and state projected revenues with the understanding that the City’s operating budget was giving up future growth and could potentially lose existing base revenues if an existing business relocated into the downtown TIF district. Mr. DeFebbo asserted that the City could not afford to have base revenues taken away from its ability to cover its operating expenditures.

 

As a compromise regarding the inclusion of future public projects in the Financing Plan, Mr. DeFebbo suggested that the completion of Heritage Trail and stormwater improvements would be more appropriate then an indoor sports facility. Comm. Strow further expressed his concerns regarding Alliance Corporation being the primary contractor for all public infrastructure projects. He preferred to have them all competitively bid.

 

Mayor Walker reiterated to the public that the Board was not discussing raising taxes to cover any of the costs under TIF. She echoed the City Manager’s comments about the need to maintain base revenues and that only additional jobs counted toward TIF. She also remarked about the opportunity to capture new private investment and the inclusion of public infrastructure projects in order to get State revenues. She further suggested that the citizens should have input regarding which public projects should be included in the development plan.

 

ORDINANCE NO. BG2008 – 54 (First Reading)

ORDINANCE EXPANDING DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT ORDINANCE EXPANDING AND READOPTING THE WKU GATEWAY TO DOWNTOWN BOWLING GREEN DEVELOPMENT

AREA, WHICH WAS ORIGINALLY ESTABLISHED BY

ORDINANCE NO. BG2007-33 AND AMENDED BY ORDINANCE

NO. BG2007-38, WHICH WAS ADOPTED TO ESTABLISH A

DEVELOPMENT AREA IN DOWNTOWN BOWLING GREEN

RELATING TO A COMPREHENSIVE MIXED USE

REDEVELOPMENT AREA COMPRISED OF RESIDENTIAL,

OFFICE AND COMMERCIAL COMPONENTS AND INCLUDING

CERTAIN PUBLIC ELEMENTS, INCLUDING A BASEBALL

STADIUM, PARKING GARAGE AND OTHER INFRASTRUCTURE

IMPROVEMENTS; APPROVING AN AMENDED AND RESTATED

LOCAL PARTICIPATION AGREEMENT #2 AMONG THE CITY OF

BOWLING GREEN, COUNTY OF WARREN KENTUCKY AND

THE WARREN COUNTY DOWNTOWN ECONOMIC

DEVELOPMENT AUTHORITY, INC.; ESTABLISHING A SPECIAL

FUND FOR THE COLLECTION OF INCREMENTAL REVENUES;

DESIGNATING AN AGENCY FOR THE OVERSIGHT,

ADMINISTRATION AND IMPLEMENTATION OF THIS

ORDINANCE; AND TAKING OTHER APPROPRIATE ACTIONS

 

Title and summary of Ordinance No. BG2008 - 54 was read by the Assistant City

Manager/City Clerk. Motion was made by Strow and seconded by Nash for first reading of said Ordinance. Comm. Strow announced that he was going to vote no today since there was still more information needed to clarify the issues. City Attorney Gene Harmon specified that if there were substantive changes made to the proposed expansion, including any exhibits to the ordinance or Amended and Restated Local Participation Agreement #2, between this reading and second reading, an amended first reading of the ordinance would be required. Following clarification of all the outstanding issues to be addressed prior to second reading of the Ordinance, a roll call vote was taken.

 

ROLL CALL: Voting Yea: Nash and Walker

Voting Nay: Strow and Denning

Abstaining: Wilkerson

First reading of Ordinance No. BG2008 - 54 was not approved for lack of a majority vote. Comm. Wilkerson abstained based on a business conflict as previously declared.

 

October 7, 2008:

 

ORDINANCE NO. BG2008 ­ 54 (Second Reading)

ORDINANCE EXPANDING DEVELOPMENT AREA TAX INCREMENT FINANCING (TIF) DISTRICT

 

Discussion continued regarding Ordinance No. BG2008 ­54, which title and summary were previously read, as well as motion and second previously made for consideration of second reading. Mr. Brooks distributed to the Board of Commissioners another revised copy of the proposed Financing Plan, which was Exhibit D to the Amended and Restated Local Participation Agreement (LPA) #2. He provided an overview of the most significant changes and responded to questions about the modified plan.

 

There was discussion about the definition of old (base) revenues and new (incremental) revenues within the TIF district, and which term might apply to a business that moves from outside to inside the downtown TIF district as well as how the State might consider the relocation of existing businesses. City Manager Kevin DeFebbo and Chief Financial Officer Jeff Meisel expressed concern, as it related directly to the City's annual operating budget, regarding the uncertainty with giving up base revenues from existing businesses that might move into the district and not just losing 80% of the incremental growth of that business. Comm. Denning also expressed his concern with the potential loss of existing base revenues and the loss of incremental revenues for development projects which would proceed regardless of inclusion in the expanded TIF district, such as the Graves Gilbert Clinic and Medical Center expansions. Mayor Walker clarified that it was her understanding based on discussions with the City of Louisville that it was discretionary on the part of the local government to agree to give up existing base revenues and that the State would not count those revenues toward the TIF district.

 

Comm. Strow agreed that the potential loss of base revenue from expansion projects had an impact on the City; however, the benefit to reaching the Signature TIF level sooner and the ability to pay off the City's General Obligation (GO) bonds at a faster pace could out weigh that loss. Comm. Nash indicated that he truly believed the expansion would reduce risk and was the key to reaching the $200 million threshold in capital investment projects needed to reach Signature TIF status.

 

Mayor Walker stated she was a huge proponent of the downtown TIF and believed the expansion would benefit the community and create more redevelopment. However, she expressed concern about an incentive system that developed new and abandoned old, and stated that she did not want growth at the expense of other areas of the City. She further reiterated her concerns of taking outside revenues away from the City and suggested revising the LPA#2 language in such a way that the City's determination for base revenues would be reflective of the State's treatment of them.

 

Comm. Strow disagreed that anyone was getting incentives in the expanded district, aside from Graves Gilbert Clinic, Commonwealth Health Corporation (Medical Center) and Western Kentucky University (WKU). He noted that the City had already agreed to give up base revenues from relocated businesses with the approval of the original district, but that there was no need to give them up in the expanded district.

 

Mr. Brooks stated that there would not be bond money to assist any other developments in the expanded district at this time, except those previously discussed. He also expressed concern about restricting the available local TIF revenues as the State would likely follow, which could impact the ability to sell bonds. Based on a question posed by Mr. DeFebbo about whether the salaries of firemen should be exempted from the TIF, Mr. Brooks explained the City's Central Fire Station expansion was considered a public improvement project and counted toward the total capital investment.

 

Jean Cherry, with Commonwealth Health Corporation, addressed the expansion of the Medical Center and WKU Nursing Program. She stated that she could not say the Medical Center would have been in the position to pursue the WKU project without the incentive of the TIF.

 

Larry Bailey, speaking on his own behalf and as Chairman of the Friends of L&N Depot,

agreed with the expansion of the TIF district and said he was disappointed when the original TIF district stopped short of the Depot property. He pointed out that the Depot's plans for expansion was the only project that was not just an idea. He inquired as to how the Depot could participate and reap benefit from the TIF revenues with its expansion plans.

 

There was also discussion regarding TIF revenues being designated toward public projects. Comm. Strow appreciated the removal of the public projects in the revised Financing Plan for which he had expressed concern about at the September 29th special meeting of the Board. Mayor Walker inquired if it was possible to move forward with other public projects that were not currently in the Plan if there was additional revenues generated from Phase II of the TIF development. Mr. Brooks replied that the Plan could be amended, with approval by all parties including the State, at anytime when there was a new project proposed. In an effort to access State revenues through the TIF, Mayor Walker suggested structuring the Plan in a way that would set bond monies aside and/or create a pool of money for future public projects, which could be considered through an application process. Comm. Denning supported the Mayor's idea but wanted the City's bond issue paid before any other bonds were issued for public projects. Comm. Strow voiced his apprehension that there would be excess revenues generated over

the next 20 years that could support such a proposal. Comm. Nash agreed the idea had merit, but did not want to risk the ability of the TIF from moving forward. Mr. Bailey reiterated the potential value to the community and benefit to tourism to include the Depot's development project now.

 

City Attorney Gene Harmon clarified that a motion to amend the ordinance would be needed since there were substantial changes being proposed from the version considered at the last meeting. He specified that 1) Exhibits A (area description) and B (area map) to Ordinance No. BG2008 ­ 54 would need to be revised to add back previous exclusions of the Central Fire Station and BGMU facilities in the expanded district, 2) an amendment to LPA#2 (Exhibit C to the Ordinance) would be required to include language which applies the same treatment of base revenues by the City as that of the State, and 3) Exhibits B (Project List), C (Project List for Incremental Bonds), D (Financing Plan) and E (Descriptions of Benefits) of LPA#2 would also need to be revised to reflect the necessary changes as discussed. Motion was made by Nash and seconded by Strow to amend Ordinance No. BG2008 ­ 54 including the description and map of the district, the Amended and Restated Local Participation Agreement (LPA) #2, and Exhibits B, C, D and E of LPA#2. Following further discussion, a roll call vote was taken on the motion to amend.


ROLL CALL:

Voting Yea: Nash, Strow and Walker

Voting Nay: Denning
Abstaining:

Wilkerson

Motion to amend Ordinance No. BG2008 ­ 54 was approved by majority vote. Comm.

Wilkerson abstained stating he had a business conflict.

 

Motion was made by Nash and seconded by Strow for first reading of Ordinance No. BG2008­ 54 as amended. Mayor Walker asked for additional discussion, and with none, a roll call vote was taken.

 

ROLL CALL:

Voting Yea: Nash, Strow and Walker
Voting Nay: Denning

Abstaining:

Wilkerson

First Reading of Ordinance No. BG2008 ­ 54 as amended was approved by majority vote.

 

October 13, 2008:

 

ORDINANCE NO. BG2008 – 54 (Second Reading As Amended)

ORDINANCE EXPANDING DEVELOPMENT AREA TAX INCREMENT FINANCING DISTRICT ORDINANCE EXPANDING AND READOPTING THE WKU GATEWAY TO DOWNTOWN BOWLING GREEN DEVELOPMENT

AREA, WHICH WAS ORIGINALLY ESTABLISHED BY

ORDINANCE NO. BG2007-33 AND AMENDED BY ORDINANCE

NO. BG2007-38, WHICH WAS ADOPTED TO ESTABLISH A

DEVELOPMENT AREA IN DOWNTOWN BOWLING GREEN

RELATING TO A COMPREHENSIVE MIXED USE

REDEVELOPMENT AREA COMPRISED OF RESIDENTIAL,

OFFICE AND COMMERCIAL COMPONENTS AND INCLUDING

CERTAIN PUBLIC ELEMENTS, INCLUDING A BASEBALL

STADIUM, PARKING GARAGE AND OTHER INFRASTRUCTURE

IMPROVEMENTS; APPROVING AN AMENDED AND RESTATED

LOCAL PARTICIPATION AGREEMENT #2 AMONG THE CITY OF

BOWLING GREEN, COUNTY OF WARREN KENTUCKY AND

THE WARREN COUNTY DOWNTOWN ECONOMIC

DEVELOPMENT AUTHORITY, INC.; ESTABLISHING A SPECIAL

FUND FOR THE COLLECTION OF INCREMENTAL REVENUES;

DESIGNATING AN AGENCY FOR THE OVERSIGHT,

ADMINISTRATION AND IMPLEMENTATION OF THIS

ORDINANCE; AND TAKING OTHER APPROPRIATE ACTIONS

 

Title and summary of Ordinance No. BG2008 - 54 was read by the Assistant City Manager/City Clerk. Motion was made by Nash and seconded by Strow for second reading of said Ordinance. City Attorney Gene Harmon explained that since the last meeting, there were two requested changes to the TIF area description and map which were part of the expanded area and had a slight affect to Exhibit E of the Amended and Restated Local Participation Agreement (LPA) #2. He further explained that the Historic L&N Depot, which housed employees of Graves Gilbert Clinic, and Warren County Maintenance facilities were included in the expanded area; however, as public facilities, their incremental revenues had previously been excluded from being counted. He opined

that adding these properties back in and removing them from being considered exclusions would not constitute a substantive change. Mayor Walker pointed out that Warren County Judge Executive Michael Buchanan requested inclusion of the Warren County Maintenance facility because the property may change ownership in the future and become privately owned.

 

With regard to the inclusion of the City’s Central Fire Station which was discussed at the

previous meeting, City Manager Kevin DeFebbo indicated that he preferred all public facilities be considered exclusions and not be counted as part of the incremental revenues. However, it was his understanding that the Fire Station was being included to count its approximate $2 million planned capital improvement toward the Signature TIF public infrastructure investment.

 

Chief Financial Officer Jeff Meisel replied to a couple questions regarding the establishment of the base for Graves Gilbert Clinic and Medical Center expansion projects as of 2007. He also explained that the City would look to the State to determine how Western Kentucky University (WKU) expansion projects in the TIF district would be counted regarding its base revenues and incremental impact.

 

Attorney Kevin Brooks, representing Warren County Downtown Economic Development

Authority, Inc., responded to questions regarding whether there were any other infrastructure improvement plans included in Phase II. He also explained the method of using property assessments, with consent of the developer and/or subdeveloper, on commercial properties within the development area to assist with paying the bond debt if there was not enough revenue generated from the TIF.

 

Once all discussion ended and with no objections regarding the revisions to the TIF area

description and map (Exhibits A and B of the Ordinance), a roll call vote was taken.

 

ROLL CALL: Voting Yea: Nash, Strow and Walker

Voting Nay: Denning

Abstaining: Wilkerson

Ordinance No. BG2008 - 54 was adopted by majority vote. Comm. Wilkerson abstained due to a potential business conflict within the expanded TIF development area.

 

October 31, 2008

Bowling Green, Ky. - The Western Kentucky University Board of Regents today approved amending the Master Development Agreement with Bowling Green, Warren County, the Warren County Downtown Economic Development Authority and Alliance Corp.
           
The amended agreement calls for WKU to enter into a 30-year agreement to lease 200 parking spaces in a downtown parking garage at $250,000 per year for 20 years and 300 spaces for $250,000 for the remaining 10 years. If bonds used to build the garage are paid off before 30 years, the lease drops to $1 per year.

December 21, 2008:

 

Kentucky News Network: Planners look for creative financing
 
Planners look for creative financing
================================================================================
Holiday fire sales on Dec 21 2008 10:26:36
 
The need to find creative new ways to finance a downtown parking garage – and cutting that garage by nearly half its capacity - may herald further delays in other parts of the nearly $400 million redevelopment plan as the nationwide recession comes home to Bowling Green.  "We may be required to stand down a little bit on this whole project for a little while," Mayor Elaine Walker said. While backers are still fishing for money to build the next few pieces, they
remain cautiously optimistic that it will get done eventually. And, they hope, in time to get $200 million invested by the end of 2014. That's the trigger for access to what planners anticipate will be millions of state tax dollars to pay off most of the development bonds. Walker said she believes the project can still reach $200 million by the end of 2014 if the national economy begins to turn around within 18 months. Right now, however, bonds for a parking garage to match the 4,000-seat Minor League Baseball park just can't be sold. The ballpark
is being built with $25 million in city-backed bonds, but the planned $19 million issue for land, design, infrastructure and garage construction were to be backed by anticipated higher downtown tax revenues resulting from the redevelopment - or, failing that, an assessment on the building's developers. In today's dismal bond market, those bonds won't sell. So developers are turning to a complicated series of loans, aimed at getting access to federal New Markets Tax Credits. Those credits are intended for investment in low-income community projects. NEW FINANCING As described in documents and by attorney Kevin Brooks, the new plan starts with an $18.9 million loan from PBI Bank and - hopefully - $2 million from Tennessee Valley Authority. That money, and more from U.S. Bank,
would be loaned to the Warren County Downtown Economic Development Authority, the nonprofit corporation created to oversee redevelopment. The authority would pass a total of $30 million onto two investment firms, USB CVI Investment Fund and USBCDE Investment Fund XXIV. Next, the money would go to another investment firm, which would loan it back to a newly created sister corporation to the downtown authority. The new corporation, called Bowling Green SPE, would have the same board members as the authority itself. Bowling Green SPE would use that money to buy land for the garage, build it - and buy the baseball park from the authority, Brooks said. With the money back in hand, the authority would pay off the loan. But the annual interest payments are expected to be $677,000, according to discussion at the authority board meeting Thursday. To pay that interest, the plan calls for using an estimated $427,000 annually in future tax revenue from new jobs and higher property values within the redevelopment, plus the $250,000 Western Kentucky University has promised to pay each of the next 30 years to lease space in the garage. "This is nothing more than short-term
interim financing," Brooks said via e-mail. "This will make it far easier to resume the original financing plan (which has not changed) when the capital markets right themselves." The tax credits are spread out over seven years, though the loan structure used to get them will take much longer to pay off, he said. When those loans and the city's ballpark bonds are finally paid off, ownership of the garage and the ballpark will go to the city, Brooks said. The authority board ratified the idea Thursday, and Warren Fiscal Court followed suit Friday. City commissioners may hold a special meeting to consider the new
garage financing plan before Jan. 1, Walker said. That would place it before newly elected Commissioner Catherine Hamilton takes office, and before Commissioner Brian Strow officially leaves. GARAGE CUTBACK The tax credits aren't expected to cover the full original cost of the garage and related work, so the number of parking spaces has been cut from 821 to 430. The garage is to be sheathed in multistory commercial and residential space; tenants there are
expected to generate the new tax revenue counted on to help pay for the project. Despite the parking-space cutback, the commercial and residential square footage will stay the same, Brooks told the authority. The garage reduction is not a concern to WKU so long as the university gets access to the spaces it has leased, WKU President Gary Ransdell said. "If the city would like to come to me
to renegotiate our terms, I would be open to that discussion," he said. The lease guarantees WKU 200 spaces in the garage for 20 years, and 300 spaces for the following 10 years, in return for $250,000 a year. The fate of that payment, however, may be an issue. The new garage financing plan counts on using the $250,000 toward debt service on the complex of loans, according to the presentation given Thursday. But the city is counting on that money to make payments on its own $25 million in bonds for the ballpark, Walker said. While
the city certainly backs the redevelopment plan, there's no wiggle room in the budget to put more city money into it, she said. Last week City Manager Kevin DeFebbo asked all department heads to cut $600,000 from the current year's budget, and said the fiscal year that starts in July 2009 may actually see a drop in total revenue for the first time in years. Occupational tax receipts, the city's main source of revenue, are down and still falling; the city must put about $800,000 more into the state-run retirement system for public employees this year, too. Bowling Green is also facing a possible $1.5 million payment to firefighters for back overtime, Walker said. The city followed state instructions on how to calculate that overtime, but a recent court ruling in favor of Louisville firefighters' lawsuit on the calculation would make Bowling Green pay too, she said. "I think it's pretty clear that the city is foursquare behind this, but we just don't have additional revenues we can put toward it," Walker said. Those same economic troubles make it even more important to hold
onto solid revenue sources such as WKU's parking lease payment, she said. Rick Brenner, minority owner of the recently named Bowling Green Hot Rods, said the reduction in garage size shouldn't really hurt the ballpark. WKU's exclusive access to its leased spaces ends at 6 p.m., leaving the spots available for evening games, he said. Otherwise, they'll count on baseball fans having access to on-street parking and nearby ground-level parking lots, both before the garage's July completion date - baseball games start April 17 - and for several years afterward, Brenner said. "Some of that surface parking goes away with surrounding redevelopment, but it's there right now," he said. Another 250-space garage, surrounded by similar commercial and residential space, is still planned for an adjacent site. That one is backed by Tennessee-based private developer Bruce Hutcherson. FURTHER IMPACTS The ballpark, garages and connected development are only the first few pieces in a redevelopment district recently expanded to 383 acres. The original district includes the Southern Kentucky Performing Arts Center - planned to go up across Seventh Avenue from the garages
and ballpark - and a mixed residential and commercial development planned for several blocks adjacent to WKU's campus. Those projects rely on different funding sources - either private money, or bonds backed by other outside revenue. Ransdell said the downtown garage trouble should have no significant effect. He's heard no indication of problems from Investors Equity, the developer behind that effort, he said. The expanded district included several new projects, such as a building shared by The Medical Center and WKU's nursing program, a new building for the College of Business and a third structure to house an expanded Graves-Gilbert Clinic. Projects in the newly added area - further toward the river from central downtown - are probably the most insulated from the current economic turmoil, Walker said. The medical buildings are expected to be built with perhaps $40 million in bond money, but those bonds would be backed mostly by taxes on wages within them, according to the official financial term sheet. The business college building would rely on state funding. Though the state budget is in dire financial straits too, the business college and medical buildings aren't scheduled to be built for several years.

 

January 28, 2009:

 

DISCUSSION OF WKU GATEWAY TO DOWNTOWN BOWLING GREEN DEVELOPMENT AREA AND TAX INCREMENT FINANCING (TIF) DISTRICT

 

City Manager Kevin D. DeFebbo said that representatives of the Warren County Downtown Economic Development Authority, also referred to as the Chapter 58 Corporation, were on hand to review changes proposed to the Financing Plan. He explained that these changes were requested to provide interim financing to complete the purchase of property for the stadium development and parking garage, in addition to constructing the parking garage.

 

Authority Chairperson Mary Cohron explained that alternate financing was needed to continue with the downtown development plans. She reported that there was a time limit to take advantage of available financing alternatives that were proposed in the Interim Financing Plan which had already been approved by the Authority and Warren County Fiscal Court. Kevin Brooks, attorney for the Authority, summarized the Interim Financing Plan and the need to pursue alternate financing while the bond markets remained unfavorable. He also responded to several questions regarding the proposed

changes to the original financing plan, including ownership of the stadium, issuance of assessment bonds, source of funding from the TIF expansion area to go toward interim financing, and incentive to achieve Signature TIF.

 

Chief Financial Officer Jeff Meisel reminded the Board that the time clock on the TIF district started January 1, 2008 so any future bond issues would have to have a repayment schedule of less than 30 years. Mr. Brooks confirmed that they were aware of the compressed time period regarding future financing structures.

 

There was discussion about the structure of the original TIF district compared to that of the expansion area and which base year applied to both. Mr. Brooks informed the Board that when the State approved the expansion area, they indicated the base year should be the same as the original district which was 2006 versus 2007. Mr. Brooks requested the City agree to changing the base year for the expansion area to 2006 and calculate the occupational license fees at 1.85% instead of 2% under the Interim Financing Agreement proposal. Mr. Meisel confirmed that the occupational license fee was set at 2% for 2006 and reduced to 1.85% beginning in 2007. He further provided that a change in the calculation to 1.85% for 2006 would reduce the City’s revenue share by $250,000. Mr.

DeFebbo expressed concern for the potential loss and impact to the City’s operating revenues beyond what was originally agreed to in October 2008.

 

Comm. Wilkerson indicated that he wanted to hear from representatives of the Medical

Center, Graves-Gilbert and WKU regarding the use of incremental tax revenues set aside for their expansion projects in the TIF district which were now proposed to be designated to cover the interim financing plan for the next 30 years. Deborah Wilkins, WKU General Counsel, stated that the University understood and agreed to the redirection of funding at this time. She declared that the WKU expansion plans would not move forward if the TIF did not move forward.

 

Comm. Nash expressed frustration with the City and Authority for not sharing information more readily. He remarked that we were all partners in this process and that full disclosure was necessary to make informed decisions.

 

With regard to whether a decision on the issue was needed at this meeting, Mr. DeFebbo

admitted the Board could choose to move forward today. However, he requested time for bond counsel to complete a review of all documents prior to the Board making that decision. City Attorney Gene Harmon also requested additional time to finalize the language in the proposed interim financing agreement and mortgage documents.

 

Mayor Walker clarified that it was her understanding that Commonwealth Health Corporation (Medical Center) was also okay with the use of incremental funds toward the interim financing plan up to the point at which they would need them for their expansion project.

 

Comm. Hamilton reiterated the need for clarification of the mortgage documents and loss of base revenues to the City’s operating budget. She also requested to hear from the representatives from the Medical Center and Graves-Gilbert, who were not present at this meeting, before making a decision.

 

There was additional discussion regarding the reality that the incremental tax revenues from the TIF expansion area could be dedicated for the next 30 years for repayment of the interim financing plan versus its original purpose. Mr. DeFebbo concurred that the alternate financing was based on good intentions to keep the project moving forward. He voiced concern that the City could not afford to give more operational revenues away and that this alternate financing could lessen the ability to reach Signature TIF status by 2014. He also noted that the ratio of public to private investment was heavier on the public sector. Mr. Brooks disagreed regarding the inability to reach Signature TIF status and suggested that this proposal for interim financing kept the project moving in the right

direction.

 

Mayor Walker expressed her support for downtown redevelopment and commented about its benefits for the community. However, she indicated she was troubled by the different iterations of the proposal and the time constraint to make a decision. She voiced concern that the City was bearing the biggest financial burden and getting the smallest amount of input at the table. She also expressed concerns with development designs not going through the proper channels for review and approval. She stated she could not support this proposal in its current structure.

 

There was consensus from the Board of Commissioners that it would hold any action on this issue until its next regular meeting which was scheduled for February 3, 2009. Mr. DeFebbo confirmed he would place the topic on the work session agenda for further discussion and place an item on the agenda for action as well.

 

February 3, 2009:

 

ORDINANCE NO. BG2009 – 5 (First Reading)

ORDINANCE AUTHORIZING THE EXECUTION OF AN INTERIM FINANCING AGREEMENT ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF

AN INTERIM FINANCING AGREEMENT AMONG THE CITY,

THE COUNTY OF WARREN, KENTUCKY, BOWLING GREEN

SPE, INC. AND THE WARREN COUNTY DOWNTOWN

ECONOMIC DEVELOPMENT AUTHORITY, INC., TO PROVIDE

FOR CERTAIN TEMPORARY MODIFICATIONS TO THE

FINANCING PLAN ESTABLISHED BETWEEN SUCH ENTITIES

FOR PROJECTS TO BE CONSTRUCTED IN THE WKU GATEWAY

TO DOWNTOWN BOWLING GREEN DEVELOPMENT AREA

 

Title and summary of Ordinance No. BG2009 - 5 was read by the Assistant City Manager/City Clerk. Motion was made by Nash and seconded by Wilkerson for first reading of said Ordinance. DeFebbo commented that this item was discussed during the earlier work session and that the City was still waiting for a complete review of the final documents by its bond counsel. Chief Financial Officer Jeff Meisel responded to questions about the redirecting of incremental taxes from the expanded TIF area specifically designated for the Medical Center, Graves-Gilbert and Western Kentucky University projects to the Chapter 58 Corporation (also known as the Warren County Economic Development Authority, Inc.) for interim financing. Mayor Walker reiterated that the interim financing would end in no less than 30 years, but sooner once bonds were issued.

 

Attorney Kevin Brooks, representing the Warren County Economic Development Authority, Inc. (Authority), responded to questions about the lease of the baseball stadium and the size of the parking garage.

 

Mayor Walker thanked everyone for addressing the concerns raised at the previous meeting on January 28, 2009, which included the determination of the base year of 2007, placing in writing the dissolution of the Interim Financing Agreement when bonds are issued, and allowing the review of mortgage documents by the City’s bond counsel. She stated she thought the project should move forward and that such an opportunity was available with the proposed interim financing plan. She further stated that with agreement from the Medical Center, Graves-Gilbert and WKU for use of incremental tax revenue, she could support the approval of this item wholeheartedly.

 

Once all discussion ended, a roll call vote was taken.

ROLL CALL: Voting Yea: Hamilton, Nash, Wilkerson and Walker

Voting Nay: Denning

First reading of Ordinance No. BG2009 - 5 was approved by majority vote.

 

February 11, 2009:

 

ORDINANCE NO. BG2009 – 5 (Second Reading)

ORDINANCE AUTHORIZING THE EXECUTION OF AN INTERIM FINANCING AGREEMENT ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF

AN INTERIM FINANCING AGREEMENT AMONG THE CITY,

THE COUNTY OF WARREN, KENTUCKY, BOWLING GREEN

SPE, INC. AND THE WARREN COUNTY DOWNTOWN

ECONOMIC DEVELOPMENT AUTHORITY, INC., TO PROVIDE

FOR CERTAIN TEMPORARY MODIFICATIONS TO THE

FINANCING PLAN ESTABLISHED BETWEEN SUCH ENTITIES

FOR PROJECTS TO BE CONSTRUCTED IN THE WKU GATEWAY

TO DOWNTOWN BOWLING GREEN DEVELOPMENT AREA

 

Title and summary of Ordinance No. BG2009 - 5 was read by the Assistant City Manager/City Clerk. Motion was made by Nash and seconded by Wilkerson for second reading of said Ordinance. City Manager Kevin DeFebbo commented that the first reading of this ordinance took place the previous week and the City was asked to accelerate the process to complete second reading prior to its next regular meeting date.

 

City Attorney Gene Harmon explained that the City’s bond counsel was not able to provide a written opinion to the City prior to this special meeting and that additional language was added to the ordinance regarding its approval being contingent upon “receipt of an opinion satisfactory to the City from the City’s bond counsel that the interim financing agreement does not impact the tax-exempt status of the City's GO bonds issued for the construction of the baseball stadium.” He also pointed out that there was language included in the mortgage document (attached to the Interim Financing

Agreement as Exhibit C) which provided that the mortgage on the ballpark property would stay in place for as long as the debt remained outstanding for the interim financing. Although the Warren County Downtown Economic Development Authority, Inc. (Authority) agreed that the interim financing would be paid in full with the issuance of TIF Bonds once the bond market improved, Mr. Harmon affirmed that it was possible that the City’s General Obligation (GO) Bonds could be paid before the mortgage for the property was released. Mr. Harmon further noted that the City was in need of documentation from the Authority that authorized the right of assignment for the sale of the Kirtley property (728 and 730 College Street) by the City to T.E.G. Acquisitions, LLC, a company affiliated with Alliance Corporation (Master Developer). Attorney Kevin Brooks, representing the Authority, agreed to provide the additional documentation.

 

Comm. Hamilton expressed her appreciation that all the parties involved with the interim

financing came forward to extend their support and understanding of the requested changes to divert the dedicated tax increments from WKU, Commonwealth Health Corporation/Medical Center and Graves Gilbert expansion projects. She remarked that the decision to finance and build the baseball stadium and parking garage were made prior to her being elected. After weighing all the variables in the alternative bridge financing package, the state of the financial market, the current stage of

construction and the properties still needed to be acquired, and considering all of the implications to City government and the taxpayers, Comm. Hamilton voiced her support of the ordinance. She further stated that given the fact that the City’s debt service commitment and contribution would remain at the same level as it was agreed to months ago, she felt it would be irresponsible to vote against allowing the project to proceed under the proposed plan.

 

Mr. Brooks responded to questions about the lien on the property being in place until the

interim financing debt was paid in full.

 

Once all discussion ended, a roll call vote was taken.

ROLL CALL: Voting Yea: Hamilton, Nash, Wilkerson and Walker

Voting Nay: None

Ordinance No. BG2009 – 5 was adopted by unanimous vote.