MINUTES
Special Meeting of the City Council
City of Butler, Pennsylvania
November 25, 2013
Mayor Stock called this special meeting to order at 6:30 PM. Mayor Stock and Councilwomen Scott, Kline, Guard and Councilman Schontz attended the meeting.
The purpose of this special meeting was to meet with PNC Capital Markets LLC, Capital Group LLC and the Parking Authority to discuss the Bond Purchase Agreement for the General Obligation Bonds, Series 2014 and other such business as deemed appropriate.
Nick Falgione from PNC Capital Markets presented an overview of the bond purchase process, including the estimated debt service conditioned upon the size of the borrowing, as finally determined, and upon what portion of the bonds will be taxable. The City has currently completed the first two steps which are securing an S & P rating (A stable) and acquiring bond insurance protection. The third step is evaluating construction costs.
Anthony Ditka, the City’s bond council, then discussed taxable bonds versus tax-exempt bonds. There was discussion between all parties involved as to how to assess fees for hotel guests and how to account for revenue and bond payments.
The decision made was to issue a “not to exceed” Bond Purchase Contract that will give the City, the Parking Authority and the developers more flexibility moving ahead.
Hotel guests will be charged a daily fee of $6.00 that would equal any parking lot tenant’s use of the space for 12 hours at $0.50 per hour.
City Council will meet on December 5, 2013 at 6:30 PM for the introduction and first reading of the ordinance required to begin the process. The second reading and adoption will be held at Council’s regularly scheduled meeting on December 19, 2013.
Mayor Stock adjourned the meeting at 8:28 PM.
