HomeMy WebLinkAbout1986-11-10 Correspondence91
CITY OF
CIVIC CENTER 410 E. WASH6NGTON ST.
Date: November 7, 1986
To: City Council
IOWA
IOWA CITY, IOWA 52240
ti lA ci4l) lewP ,
Cal d- CGE2.iL
CITY
(319) 356-5CM
From: City Manager
Re: Special City Council Meeting - Monday, November 10 & Tuesday, Nov. 25
Representatives of the Holiday Inn are considering refinancing the industrial
revenue bond issue that assisted in the development of their downtown hotel
project. In order to proceed with the refinancing, they have requested that
the City Council meet in special session on Monday, November 10, at 8:00 AM,
to authorize a public hearing concerning this matter. The hearing will be
scheduled for Tuesday, November 25 at 12:00 noon.
This issue is unfolding rather rapidly and there are many details with which
I am not completely familiar and it will require the staff to review the
existing UDAG agreements to determine the financial liabilities and/or other
related financial exposures that the City may experince in pursuing the
refinancing. The process has been complicated by the fact that the original
bond Counsel -opinion indicated that the City Council could not consider the
refinancing due to potential conflicy of interest with respect to Council -
member Darrel Courtney and his affiliation with the Dain Bosworth Company.
Discussions with the County indicated that they may try to extract certain
commitments from the developer of the hotel project if they were to be used
as the conduit for this IRB refinancing. As of this date, I have no further
details other than the bond counsel for the Holiday Inn has indicated that the
Council may now consider the refinancing, in that the conflict of interest
issue has been resolved.
-I