Mayor Gary Combs - present

Mayor Pro-Tem Ricardo Garcia - present

Commissioner Jerry McCallister - present

Commissioner Ursel Behnken - present

Commissioner Glenn Wagner - absent

I.

HOUSING BOND DISCUSSION - Manager Tom Burns reported that Attorney Chesser contacted Pat Lott as independent council for this bond issue.  Manager Burns resolved the concerns of the commission.  He found that:

-  if the town decides to support the ECH II - Captains Quarters, LLC, it should not effect the ability to borrow money this calendar year.

-  the principles are asking the Town of Shalimar because they likely perceive the town as a friendlier issuer.  Also, smaller cities are less likely to have strict policies in place and more likely to accept a lower fee.

-  the contract resolution should contain some sort of indemnity clause to avoid any future financial risk to the town.

-  the proposed payment is typically a percentage up to 2% but $50,000 would probably cover any legal fees.

-  the bond issuer should provide the town with evidence that this is a financially feasible project.

Mr. Kent stated that they would agree to have language in the contract that would cover court fees.  The town will be required to pass a resolution and will need interlocal agreements with each jurisdiction associated with the project.

Commissioner McCallister moved to proceed with ECH II - Captains Quarters, LLC on the issuance of $12,000,000 low income revenue bonds with a ½% (or $60,000) fee noted in the contract.  The motion was seconded by Commissioner Garcia and passed unanimously.