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HomeMy WebLinkAbout01-16-1996 Meeting I FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - January 16, 1996 2:00 P. M. PRESENT: Hons. Larry E. Sconyers, Mayor; J. Briqham, Chairman; Bridges and Beard, members; A. B. McKie, Jr., Controller; jim Wall, Interim Attorney; Charles Dillard, Interim Urban Services Administrator; Linda Beazley, Interim Suburban Services Administrator; Steve Reed, Claims Investigator; Alma Stephenson, Manager, Consolidated Revenue; Lena Bonner, Clerk of Commission-Council and Nancy Morawski, Deputy Clerk of Commission-Council. ABSENT: Hon. Freddie Handy, Vice-Chairman. Also Present: Wayne Partridge and Sylvia Cooper of The Augusta Chronicle, George Eskola of WJBF Television, other members of the news media and Hon. Robert Zetterberg, Commissioner. I Communication from the Richmond County Board of Tax Assessors regarding recommendations for refunds as follows: Ray D. Bigger - refund in the amount of $254.90 William Myles - refund in the amount of $382.35 Phyllis Neumann - refund in the amount of $254.90 Thomas Morgan - refund in the amount of $382.35 James W. Smith - refund in the amount of $136.08 Mr. Beard: I move it be approved. Mr. Bridges: Second. Motion adopted unanimously. Mr. Mayor: The architect from the Golf Hall of Fame came to see us and they propose that we fund the project for a total of $6 million. After talking with Mr. McKie, we could do that through a tax anticipation note which would enable us to go ahead and give them the money so they can start the project and then as the funds become available, we can pay the note back. The interest will be accrued on the note and will actually come off the part we give them so we won't be in debt. . Mr. Chairman: They want permission to borrow $6 million dollars and it will be paid back in their payments through 1% Sales Tax. Do we have an estimate on the time? I Mr. McKie: Yes, sir. We have allocation of the sales tax budget prepared to present at the budget meeting you scheduled. And we've based that allocation solely on what was presented in the capital improvement plan, basically, for 1996 and we would probably have funded the Golf Hall of Fame by the end of August. The State money will be coming to them July 1. Mr. Beard: And then they would pay this money back. I Mr. McKie: We would simply not remit it to them. We would withhold the sales tax as it comes in. Mr. Beard: Would this interfere with other projects anticipated through the sales tax? Mr. McKie: No, sir. I say no, but that's questionable because some people might want to move 1999 and 1998 projects into '96. So there could be some potential conflict but if we go by the schedule in the capital improvement plan, then we will not have any significant conflicts. Mr. Beard: Do they need the whole $6 million? Mr. Wall: They have a 27-month timetable in order to open by Masters of 1998 and they're trying to do that. In order to do that, they need to move forward with architectural plans as well as the acquisition of the property, surveying costs and various other things. It would not involve $6 million. I think there was another number mentioned and I do not have that figure before me. I don't know that it would be necessary to borrow the full $6 million; it probably would depend upon the acquisition costs I of the various properties and how fast that moves because I suspect that will be a substantial portion of the costs. In November the city entered into an agreement with the Golf Hall of Fame allowing the City to attempt to acquire the properties, to do a Phase I environmental and to pay the survey costs, etc. and also to enter into an architectural contract between the City and the architectural firm. The proposal is to allow them to proceed with the work, get started doing the surveying, acquiring the properties and since the first sales tax funds won't come in until the first of April, the tax anticipation note would allow the consolidated government to go ahead and borrow against those monies. Then when you budget the sales tax proceeds, rather than remitting those funds to the Golf Hall of Fame, they would be credited against that tax anticipation note so that by December 31, the TAN had been fully paid for. Whether that's the full $6 million in the first year or some lesser number probably would depend upon how fast these properties were acquired, how fast the costs were incurred because you wouldn't have to draw down all the money that's borrowed under the TAN. It would be there and you could draw against it as needed as these properties were acquired and as other expenses were incurred. Mr. McKie: I think they need a commitment from us but .1 not necessarily cash in the bank. I Mr. Wall: I think some instruction needs to be given to either Charles or myself to begin the process of acquiring the properties and getting them appraised and surveyed. Mr. Bridges: Do we need a commitment for an amount? Mr. McKie: Yes, sir. For what's in the capital improvement plan. Mr. Chairman: What is in the plan? Mr. McKie: I think four from the County and two from the City. Mr. Chairman: Have you had any other organizations come with similar proposals? I Mr. McKie: The National Science Center. We worked with them to try to effect a bank loan. Seven banks worked with them on this and the problem was they had to have a letter from the government stating how much and exactly by when it would be repaid and since that is subject to Commission approval on an allocation, no one could give them a letter. We finally settled on saying that it was in the capital improvement plan and that's all we could really say. Mr. Bridges: I make a motion that we commit to the $6 million dollars. Mr. Beard: I'll second it. Motion adopted unanimously. Mr. Wall: Does that include direction to Charles and myself to proceed? Mr. Chairman: Can I have a motion we direct our Interinl Administrator for Urban Services and the Interim Attorney to proceed on acquiring the properties in question? Mr. Beard: I so move. Mr. Bridges: Second. Motion adopted unanimously. ADJOURNMENT: There being no further business, the meeting was adjourned. I Lena J. Bonner Clerk of Commission-Council NWM