MINUTES OF THE

VINEYARD REDEVELOPMENT AGENCY

BOARD MEETING

Vineyard Town Hall, 240 East Gammon Road, Vineyard, Utah

February 27, 2013, 7:00 PM

PRESENT: ABSENT:

Chairperson Randy Farnworth

Boardmember Sean Fernandez

Boardmember Jeff Gillespie

Boardmember Norm Holdaway

Boardmember Nathan Riley

Staff Present: Town Planner Nathan Crane, Town Engineer Don Overson, Laura Lewis of Lewid Young Robertson and Burningham, Water Operator Sullivan Love, Town Attorney David Church, Building Official Doug Bezzant, Town Recorder Debra Cullimore

Others Attending: Stewart Park, Gerald Anderson and Jerry Grover of Anderson Development, Nate Hutchinson of Flagship Homes

The Vineyard Redevelopment Agency Board held a regular meeting on February 27, 2013 starting at 7:00 p.m.in the Vineyard Town Hall, 240 East Gammon Road, Vineyard, Utah.

The meeting was called to order at 8:29 p.m.

MINUTES REVIEW AND APPROVAL – February 13, 2013

BOARDMEMBER HOLDAWAY MOVED TO APPROVE THE MINUTES OF THE MEETING OF FEBRUARY 13, 2013. BOARDMEMBER GILLESPIE SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY WITH ONE ABSENT.

BUSINESS ITEMS -

1.1  – Discussion and Action – Future RDA Projects and Financing – Town Engineer, Don Overson and Financial Advisor, Laura Lewis, will discuss future RDA projects and funding sources with the RDA Board.

Ms. Lewis explained that current information regarding taxable value in the RDA area is not yet available. She clarified that in order to issue new debt, the RDA must maintain two times the revenue necessary for debt service. She noted that based on maximum assumptions for taxable value and potential interest rates and other terms, the RDA could potentially bond for an additional $7.6 million.

Mr. Church noted that the reimbursement payment of approximately $5 million due to be paid to Anderson Development should be considered in relation to future debt service obligations. Gerald Anderson stated that Anderson Development would be willing to subordinate the reimbursement payment until a later date to allow additional bonding which allow construction of additional infrastructure.

Mr. Overson reviewed infrastructure development projects in the RDA area. He noted that the goal for the first phase of bonding was completion of Mill Road and other associated infrastructure from Center Street to 800 North. He reported that this phase of development is substantially complete. He noted that a particular section of sewer line is yet to be completed due to underground obstacles which required a re-design of that section.

Mr. Overson went on to review proposed projects which would be completed using proceeds from additional bonding. Proposed projects were presented as follows:

·  Center Street Intersection Upgrades - $100,000

·  UVU Sewer Line - $620,000

·  Phase 1 Power and Gas Lines - $400,000

·  Phase 2 Power and Gas Lines - $370,000

·  400 North Water Line - $895,000

·  Phase 3 Power and Gas Lines - $280,000

·  Main Street to Vineyard Connector - $2,300,000

·  Total - $6,215,000

Mr. Overson noted that pending residential development will increase traffic significantly on existing roadways, and it will be necessary to complete additional traffic corridors to accommodate future traffic flow. The Board also discussed the impact of future development on available water, noting that it will be necessary to create additional water storage to accommodate future water needs and requirements based on Inter-local agreements with Orem City. Chair Farnworth and Mr. Overson reviewed possible solutions to creating additional water storage which are currently under discussion with Orem.

Mr. Overson suggested that that Board consider funding design work for future RDA projects using Tax Increment revenues in order to have the projects ready for construction once bond revenues are received.

Stewart Park noted that gas and power lines associated with Mill Road seem to be a high priority. He observed that Rocky Mountain Power has a specific time frame associated with approval and installation of power lines. He requested that the RDA Board consider funding $200,000 to fund the preliminary application process to Rocky Mountain Power.

Nate Hutchinson stated that Flagship Homes is planning to purchase approximately 175 acres near the Vineyard Connector corridor. He stated that Flagship Homes would be willing to complete roadway improvements for Main Street to Vineyard Connector. Mr. Hutchinson noted that development of the property will be beneficial to the Town, but that development is dependent in large part of adequate transportation infrastructure.

Gerald Anderson indicated that based on information he has received, the State Legislature will approve funding for the Vineyard Connector. Three lanes of the five lane roadway will be completed initially, and all of the right-of-way has been purchased.

Chair Farnworth called for further comments or discussion. Hearing none, he called for a motion regarding the funding request made by Mr. Park as well as proceeding with additional bonding.

BOARDMEMBER GILLESPIE MOVED TO ALLOCATE $200,000 TO FUND APPLICATION TO ROCKY MOUNTAIN POWER FOR INFRASTRUCTURE CONSTRUCTION, TO AUTHORIZE MR. OVERSON TO BEGIN DESIGN WORK FOR THE NEXT PHASE OF RDA PROJECTS, AND TO AUTHORIZE MS. LEWIS TO PROCEED WITH INVESTIGATION OF BONDING OPTIONS IN THE MAXIMUM AMOUNT POSSIBLE, BASED ON ANTICIPATED TAXABLE VALUES, FOR PROJECTS AS PRESENTED BY MR. OVERSON. BOARDMEMBER FERNANDEZ SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY.

Ms. Lewis will prepare a term sheet to be distributed to potential bond purchasers, as well as a Resolution establishing the parameters of the bond.

ADJOURNMENT – The meeting of the Vineyard Redevelopment Agency was adjourned at 8:56 p.m. The RDA Board will schedule future meetings as necessary.

MINUTES APPROVED ON – March 27, 2012

CERTIFIED CORRECT BY ______

D. CULLIMORE, TOWN CLERK/RECORDER

Page 3 of 3; February 27, 2013 Redevelopment Agency Board Meeting Minutes