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IDA moves forward with Y bond sale

Friday, July 8, 2011

A meeting of the full board for the Monett Industrial Development Authority (IDA) will be held at 5 p.m. on Thursday, July 14 to act onthe issuance of bonds to help fund the Monett Area YMCA's construction project.

A public hearing on the proposal to issue $8 million in revenue bonds to the YMCA generated no public comment on Wednesday. A resolution to approve issuing the bonds will now be taken up by the IDA board.

UMB Bank proposed using the Monett IDA as a mechanism for funding construction of a new Monett Area YMCA building. State law allows IDAs to issue tax-free revenue bonds for constructing recreation facilities.

The entire bond issue would be purchased by UMB, which would sell the bonds as funds were needed. According to Philip Richter, senior vice president and manager for public finance with UMB Bank in Kansas City, there would be no liability to the IDA or the City of Monett for the bonds. The city will own the YMCA building and lease it to the YMCA for 99 years. The lease will be held as a mortgage by UMB as security on repayment of the bonds.

Mark Nelson, chairman of the IDA board of directors, attended Wednesday's hearing with fellow board members Brian Hunter and Rod Anderson. Attending for the YMCA were Gordon Brown, executive director, and Michael Garrett, chairman of the capital campaign. The City of Monett was represented by City Administrator Dennis Pyle.

Nelson anticipated there would be additional discussion at the next meeting. Anyone wanting to provide comment can attend the next meeting or submit comments in writing to the IDA chairman with the city clerk at city hall.

Gilmore and Bell, the largest bond counsel in the state, has prepared paperwork for the bond sale.



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