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HomeMy WebLinkAbout11/21/1985November 21, 1985 Special Council Meeting Minutes from November 21, 1985. Mayor Bowers in the Chair. Roll call: Dowie, Seeber, Getty, Lichty. Absent: Wright, Penaluna and Klinger. 88408 - Moved by Dowie, seconded by Seeber that the Agenda as proposed for the Special Session of November 21, 1985, at 11:00 a.m. be accepted and approved. Motion carried. 88409 - Moved by Seeber, seconded by Lichty to receive and place on file the call. Motion carried. 88410 - This being the time and place fixed in the published notice for the consideration of proposals for the purchase of 6.905 million dollars in Sewer Revenue Bonds, the Council proceeded accordingly. The Mayor announced that the time had arrived for the receipt of bids of said bonds. Moved by Klinger, seconded by Dowie that the following sealed bids be received, placed on file and not opened and sealed bidding closed: Bidder John Nuveen Inc. Merrill Linch Capital Markets Motion carried. 88411 - Moved by Getty, seconded by Lichty that the proof of publication and notice of public meeting for the issuance of 6.905 million dollars in Sewer Revenue Bonds as published in the Waterloo Courier on November 12 and 19, 1985, be received and placed on file. Motion carried. 88412 - Moved by Dowie, seconded by Lichty that the Clerk be instructed to open all sealed bids and refer the bids to Speer Financial Inc. Bidder Net interest John Nuveen Inc. 9.05500% Merrill Linch Capital Markets 9.19469% Motion carried. 88413 - Moved by Dowie, seconded by Lichty that the Council recess the Special Session until 12:55 p.m. to allow Speer Financial to analyze the two bids that were received. Mayor Del Bowers announced that the time was 1:00 p.m. and that due to some delays the Council would now continue into the joint session of the Waterloo City Council and Community Development Board. Mayor Bowers stated that at the end of this meeting we would take action to award the Sewer Revenue Bonds bids. November 21, 1985 Page Two JOINT SESSION WATERLOO CITY COUNCIL & COMMUNITY DEVELOPMENT BOARD City Hall Council Chambers r:016'p.m., November 2177985. Member present: Dowie, Seeber, Getty, Lichty, Penaluna. Absent: Wright and Klinger. 88414 - Moved by Seeber, seconded by Lichty to approve the Agenda as proposed. Motion carried. 88415 - Moved by Seeber, seconded by Dowie that copies of the call of the Special Meeting of November 21, 1985 at 1:00 p.m. be received and placed on file. Motion carried. 88416 - Mayor Bowers that the time had come for the discussion on the sale of portions of City property known as Rath Packing Company. Mayor Bowers continued that there were two proposals for discussion, one from Intro -Spec Inc. and another proposal from Metts Company Inc., Real Estate Developers. Mayor Bowers asked Russ Lowe Chairman of the Development Board if had a recommendation on either proposal. Russ Lowe stated that if the Community Development Board would have a recommendation at this time, it would be to reject both offers. Bill Smith, Attorney for the Community Development Board, suggested that the City advertise in major newspapers around the midwest offering the property known as the Rath Packing for sale. Louis Beecher, Attorney for Intro -Spec Inc., spoke on behalf of the proposal from Intro -Spec. Beecher stated that Intro -Spec was a group of northeast Iowa Hog Producers that were tired of sending their hogs out of state for slaughtering and processing. He stated that his group had a million dollars of pledges to date. Beecher gave a short history of Intro -Spec and how he became involved with it, he continued that the company had a lease basis worked out with a supplier of the equipment that they would need to operate a hog slaughtering company. Beecher continued that his corporation would now like to buy the entire plant from the City based on the possibility of expanding into the hog, chicken, turkey slaughtering and processing. Beecher stated that some of the operating funds would cone from the stock in the company being offered publicly, the company is scheduled to open next Spring, that the total risk of the company's survival is on the farmers involved in Intro -Spec, the company would begin with a minimum of 250 employees, there would be no guarantee of wages because the company must stay competitive, and that if it did work out for the company, that the property would be sold back to the City for the same amount that it was purchased for. November 21, 1985 Page Three Tom Penaluna, stated that it was time for the City to get something going and suggested that we move ahead so that we can put 250 people back to work. Moved by Dowie, seconded by Penaluna that the City enter into serious negotiations with intro -Spec, Inc., regarding the sale of the City awned property known as the Rath Packing Company. Prior to the vote Getty asked if any other proposals for the purchase of the Rath property would he considered in the negotiations with Intro -Spec. Mayor Bowers explained that in the negotiations, any and all proposals would be considered if they fit into the overrall plan for the property. Roll call vote: Ayes: bowie, Seeker, Getty, Penaluna. Abstain: Lichty. Absent: Wright and Klinger. Motion carried. 88417 - Moved by Getty, seconded by Penaluna that the Council meet in Executive Session to discuss the two proposals for the sale of the Rath property. W. David Tyler, City Attorney, stated that under the open meetings law that the sale of property is not one of the criteria for meeting in Executive Session. Penaluna then withdrew his second. Getty then withdrew his motion. Derek Englen, Vice President of Speer Financial, stated that in his opinion the bid received on the Sewer. Revenue Bonds from John Nuveen was the hest bid and recommended that the City accept said bid. Moved by Penaluna, seconded by Dowie that "Resolution authorizing the sale and award of 6.905 million dollars in Sewer Revenue Bonds and authorizing the agreement of such sale and award to John Nuveen and Company, Inc.", be adopted. Ayes: Dowie, Seeker, Getty, Lichty, Penaluna. Absent: Wright and Klinger. Resolution adopted and upon approval by Mayor assigned No. 1985-667. 88418 - Moved by Dowie, seconded by Lichty that the beer license be approved for Miguel Market, 1611 E. 4th Street be approved. Motion carried. 88419 - Moved by Penaluna, seconded by Getty that the Council meeting be adjourned. Motion carried. Larry P. Burger City Clerk/Auditor