HomeMy WebLinkAbout1979-04-13 - Minutes - 411;44)
mr. 4v MINUTES OF A RESIDENTIAL HOUSING FACILITIES BOARD MEETING
A meeting of the City of. Fayetteville, Arkansas, Residential Housing
Facilities Board was held on Friday, April 13, 1979, at 10:00 o'clock A.M. at
the Chamber of Commerce, Fayetteville, Arkansas.
MEMBERS PRESENT: Chairman F. H. Martin, Ron Pennington, Dale. Christy; John
Dominick and George Faucette, Jr,
MEMBERS ABSENT: . None.
OTHERS PRESENT: Jim Buttry, Jim McCord, John Rauscher, Don Grimes (Powell $
Satterfield), Larry Phillips (Greer Abstract Co.) , Phil Bron-
son (Bronson Abstract Co.) , and other unidentified members of
the audience and press.
ROLL CALL:
Roll call was made and it being ,found that all members were present the
Chairman announced the meeting open for business. .
MINUTES:
k The minutes of the last two previous meetings (February 9, 1979, and
March 27, 1979) were approved.
NEW BUSINESS:
Mr. Buttry commented that the interest rates received for the bonds were
as low as any in the State. He stated that this meeting had been called in
order to discuss the closing documents which would need to be approved by the
Board, i.e. :
(1) Contract of Purchase; .
(2) Trust Indenture;
(3) Sales Servicing Agreement; and
(4) Approval of Official Statement.
Mr. Rauscher stated that the underwriting syndicate is composed of fifteen
financial institutions and that the average .rate on the bonds is 7.25%. He .
stated that the interest rate to the prospective borrowers would be 8.1%. He
noted that this spread is somewhat larger than originally anticipated,, however,
the larger spread in rates would result in a much larger windfall which will be
available to be returned to the City of Fayetteville at the end of the issue.
Mr. 'Rauscher stated that the closing documents would be ready for signing
on the 23rd of April and that the closing and release of funds would be held on
the 24th of April at the Republic Bank in Dallas, Texas.
Mr. Grimes (Powell { Satterfield) stated that it had been the goal of the
underwriters and this Board to obtain the lowest interest rate possible for the
! bonds anywhere in the State and that this goal had been accomplished.
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Residential. Housing Facilities Board
April 13, 1979
Page 2
RESOLUTION--APPROVAL OF EXHIBIT A:
Mr. ,Buttry introduced and.read a proposed resolution (a copy of which is
appended hereto as Exhibit A and made a part of the minutes hereof) making
certain findings in connection with the program, approving the proposed issu-
ance and sale of the bonds; and authorizing and prescribing other matters per-
taining thereto. Discussion ensued.
TITLE INSURANCE REQUIREMENTS:
Chairman Martin stated that representatives of the two abstract companies
submitting bids for titleinsurance as required by the rating agency were pres-
ent at the meeting and that hewould like to discuss the insurance requirements
before continuing in a lengthy ,discussion of the proposed resolution outlined
above: .
Phil Bronson stated that his bid was submitted for the whole amount of the
bond issue rather than any partial amount and that he would want to change his
bid to use the standard Arkansas 'rate for title insurance. Larry Phillips stated
that his bid was submitted as not including fees for title examinations. He
stated that he was willing to stay with his quoted bid, but again noted that his
bid did not include payment of attorney's opinion fees. Additional discussion
ensued. George Faucette moved to accept the reissue rate for the insurance. •
(which is considerably lower than the standard Arkansas rate) , plus $1.00 per
thousand for legal fees connected thereto. Chairman Martin seconded the motion,
which passed unanimously. A discussion ensued concerning survey requirements,
however no action was taken thereon.
RESOLUTION--APPROVAL OF EXHIBIT A, CONTINUED:
Chairman Martin stated that further consideration was in order for the
resolution submitted by Mr. .Buttry. After further discussion, Dale Christy moved
that said resolution be adopted and approved. John Dominick seconded the motion,
which passed unanimously. •
RESOLUTION--APPROVAL OF ISSUANCE EXPENSES:
The Chairman stated that discussion was in order concerning the tentative•
issuance expenses of the program. Discussion. enused concerning the fees built
into the bond issue for such expenses as bond counsel, Facilities Board counsel,
bond and Official Statement printing, closing costs, insurance premiums, etc.
After discussion on several of the individual items, George Faucette moved to
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• authorize the entire list of tentative issuance expenses as submitted by the
underwriters (a copy of said list is appended hereto as Exhibit B and made a
part of the minutes of this meeting) . Dale Christy seconded the motion, which
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passed unanimously.
. . ,
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Residential Housing Facilities Board
April 13, 1979
Page 3
RESOLUTION--EXPRESSION OF GRATITUDE TO PHIL TAYLOR:
George Faucette moved that a Resolution of Appreciation be approved .ex-
pressing the gratitude of the Facilities Board to Phil Taylor for providing
the Board an income survey of the City at no expense to the Board. Dale Christy,
seconded the motion, which passed unanimously.
ADJOURNMENT:
There being no further business to come before the meeting, the Chairman
adjourned said meeting at 12:23 o'clock P.M.
Ron Pennington, Secretary
ATTEST:
F. H. Martin, Chairman
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