Minutes

Development Authority of LaFayette

Special called board meeting at City Hall

Friday, April 28, 2006

9 a.m.

 

PRESENT:  Board members Henry Gilbert, Fred Henry, Robert Jones and Charles Wardlaw; City Manager Johnnie Arnold; City Attorney Ron Womack and City Economic Development Director Catherine Edgemon

ABSENT:  Board members Jim Cole, P.D. Fortune and Stan Ledbetter

Chairman Gilbert called the meeting to order at 9:15 a.m.

Unique Fabricating building

Mr. Womack said Unique Fabricating, according to its lease with the Development Authority, has the option to purchase that building for $220,000 and to pay any additional amount owed.  Unique Fabricating does not owe any additional amount.  Unique Fabricating has asked to pay the $220,000 off over a two-year lease extension.  He advised the options are to decide whether to offer the extension, at what interest rate and what amount to be paid. 

Board member Henry said Unique Fabricating should pay interest on the loan, insurance and taxes on the building if the lease purchase agreement is made.

Board member Henry made a motion that the Development Authority set the following conditions in its lease extension offer to Unique Fabricating:  repay the loan in 24 months; pay insurance and all city, county and school board taxes on the building during the extension; and pay the current prime interest rate on the loan during the extension.  Board member Wardlaw seconded.  The motion passed unanimously.

Board attorney

Mr. Womack said he is willing to serve as the board’s attorney to succeed Dennis Watson who has retired.  Mr. Womack left the meeting.  Board member Jones made a motion to appoint Mr. Womack as the attorney.  Board member Henry seconded.  The motion passed unanimously.

Reaffirming officers

After discussion, board member Jones made a motion to select officers as follows: Chairman Gilbert to remain chairman, board member Jones as vice chairman, and board member Henry as secretary-treasurer.  Board member Henry seconded.  The motion passed unanimously.

Authority transaction fee

Board member Henry made a motion to include in the conditions of the proposed lease extension to Unique Fabricating that the company $100 monthly as a transaction fee, with that money to be deposited into the Development Authority’s bank account.  Board member Jones seconded.  The motion passed unanimously.

Chairman Gilbert adjourned the meeting at 9:50 a.m.