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  •  Nephi City adopts parameters resolution for new hotel construction


By Myrna Trauntvein
Times-News Correspondent

Nephi is one step closer to making the way for a hotel to be constructed in the city possible.

The Nephi Community Reinvestment Agency adopted the area parameters resolution after meeting as that agency during council meeting on Tuesday.

A public hearing for the issuance of the bond is scheduled for Tuesday, December 5, at 7:30 p.m., the first meeting of the council in December.

“Similar to other times when the council has looked to issue bonds, a parameters resolution must be adopted,” said Seth Atkinson, city administrator. “In this case the Community Redevelopment Agency would be the body who would consider the parameters resolution for a bond on the Community Reinvestment Area.”

“This is the next step in a long process,” said Atkinson.

Like most parameters resolutions, the boundaries are established with some excess capacity to enable fluctuations in the bond amount and interest rate.

“This will allow things to move forward if there are any market changes without returning to the council for approval on another parameters resolution,” he said.

In this case, Resolution 11-7-17 sets the bond amount at $1.6 million, the maximum interest rate at 5 percent, and a maximum term at 22 years.

The anticipated bond amount is estimated at $1.3 million plus closing costs.

Atkinson said that strategically the city is trying to get these bonds listed as “Bank Qualified” which enables a direct bank placement.

“This can significantly reduce issuance costs,” said Atkinson.

Atkinson said that he had received the paperwork just the evening before council meeting. Changes had been made to the resolution prior to meeting.

“This is a parameters resolution so it sets the boundaries,” he said.

A parameters resolution is a formal document drafted with the parameters of the bond issue, e.g., maturity date, maximum interest rate and etc. A parameter is a boundary that defines and sets conditions.

“We would have to come back to the agency if the interest was higher than anticipated but we don’t think that will happen,” said Atkinson.

Next, the city will need to get interlocal agreements in place for all who would be affected such as the school district and the county.

The master resolution will be addressed later.

“It is my recommendation that you approve Resolution 11-7-17 - Community Reinvestment Area Parameters Resolution tonight as the Community Reinvestment Agency,” said Atkinson.

After the minutes of the preceding meeting had been read and approved, Lisa Brough, as secretary, presented to the members of the Redevelopment Agency of Nephi City an affidavit showing evidence that not less than 24 hours of public notice of the agenda, date, time and place of the November 7, Regular Meeting of the Redevelopment Agency.

This was done in compliance with the requirements of Utah Code Annotated, 1953, the Utah Open Meeting Act, by posting written notice of the meeting at city hall, providing notice to at least one newspaper of general circulation and published on the Utah Public Notice Website (http://pmn.utah.gov.

“We will bring back the master resolution and that is what we will eventually adopt,” said Atkinson.