2006-09-12 Development Authority of Pearland Minutes of the Board of Directors Meeting . DEVELOPMENT AUTHORITY OF PEARLAND
MINUTES OF THE BOARD OF DIRECTORS MEETING
September 12, 2006
CITY OF PEARLAND §
STATE OF TEXAS §
DEVELOPMENT AUTHORITY OF PEARLAND §
Call to Order
A special meeting of the Board of Directors (the "Board") of the Development Authority
of Pearland (the "Authority"), a non-profit corporation organized to aid, assist and act on behalf
of the City of Pearland, Texas (the "City"), was held at City Hall, 3519 Liberty Drive, Pearland,
Texas, on Tuesday, September 12, 2006 commencing at 4:00 p.m. and a quorum was established.
Written notice of the meeting including the date, hour, place and agenda for the meeting, was
posted in accordance with the Texas Open Meetings Act. The following Directors were present
when the meeting was called to order: Chair Tom Reid, Henry Stanaland, Bill Sloan, Tom Pool
and Ed Baker. Also in attendance were Bill Eisen, Claire Manthei, Gary Cook, Drew Pelter,
Trey Lary, Frank Ildebrando, Ryan O'Hara, Rick Witte, Marcus Deitz, Sue Darcy and Charles
Knight.
Approval of Minutes
_ Chair Reid presented the minutes of the Development Authority Board meeting held on
August 8, 2006 for approval. A motion was made by Director Baker and seconded by Director
'OW Stanaland to approve the minutes. Director Baker asked for clarification on the statement in the
minutes regarding developer interest rates of 8 percent and 6.5 percent. Gary Cook responded
that, per the Development Agreement, the first $20 million in developer advances earned interest
at the rate of 8 percent, and developer advances in excess of$20 million earned interest at the
rate of 6.5 percent. There being no further discussion, the motion passed unanimously.
Public Comments
There were no public comments.
New Business
A. Sue Darcy with Knudson & Associates, LP stated that ETI Accounting Services was not
able to attend the meeting. As a result, Chair Reid stated that the Board would defer action on
the Quarterly Financial Report until the next Board of Directors meeting.
B. Sue Darcy stated that ETI Accounting Services was not able to attend the meeting. As a
result, Chair Reid stated that the Board would defer action on the Payment of Consultant
Invoices and Execution of Checks or Wire Transfer Instructions until the next Board of Directors
meeting.
C. Frank Ildebrando with RBC Capital Markets reviewed with the Board the general terms
of the draft Preliminary Official Statement for the sale of Series 2006 Bonds. Ryan O'Hara also
distributed a revised Tentative Schedule of Events leading up to the bond sale. Rick Witte with
Andrews Kurth then distributed an updated draft of the Preliminary Official Statement ("POS"),
which superceded that which was included in the Board packets. Specifically, Mr. Ildebrando
noted that the Board meeting at which approval of the Official Statement would take place was
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rescheduled for October 2, 2006. He then described the POS as a marketing document used by
the underwriters, which contains both legal and financial information valuable to potential bond
buyers. Mr. Ildebrando then reviewed the current method of revenue collections within Tax
Increment Reinvestment Zone Number Two ("TIRZ No. 2"), and the effect of changes in school
finance laws on any bond sale. He reminded the Board that per state law, Alvin Independent
School District ("AISD") revenues cannot be pledged to pay bonds. In response to a question by
Director Sloan, Mr. Ildebrando stated that AISD revenue will never be used to size a bond issue
and will only be used to reimburse the developer in cash. He also noted that the new school
finance laws will keep TIRZ revenue whole. He explained the process for dealing with school
district financing remains to be worked out.
In response to a question by Director Baker, Mr. Ildebrando confirmed that Fort Bend
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ISD was not currently participating in TIRZ No. 2. Mr. Ildebrando confirmed that the estimated
captured appraised value of TIRZ No. 2 as of August 1, 2006 allowed for the proposed bond size
of$9.5 million. Director Stanaland asked why the draft POS they were initially provided was
sized at $10.3 million, to which Mr. Ildebrando responded that the initial draft did not take into
account the effect of exemptions on appraised property values within TIRZ No. 2. In response to
a question from Chair Reid, Mr. Ildebrando confirmed the POS accounted for the 2006 City of
Pearland tax rate recently approved by the City Council. Mr. Ildebrando also stated that there
would be time for additional comments to be incorporated into the Official Statement prior to the
next Board meeting, which is scheduled for October 2, 2006.
Director Baker made a motion to approve the revised schedule of events and the
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Preliminary Official Statement for the sale of the Series 2006 Tax Increment Revenue Bonds.
Director Stanaland seconded the motion. The motion was passed unanimously.
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Adjournment
There being no further business to come before the Authority, upon unanimous consent
by the Directors, the meeting was adjourned at 4:47 p.m.
ADOPTED and APPROVED this day of , 2006.
Tom Reid, Chair
Henry Stanaland, Secretary
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