Chatham Square Project Costing Gloucester Even More Money

---------- Forwarded message ----------
From: "Frank J. Robertson" <[email protected]>
To: nicholas marchese <[email protected]>
Date: Wed, 24 Mar 2010 10:46:46 -0400
Subject: Re: [Fwd: RE: Orens/Gloucester Redevelopment Agreement]
I would expect the rate for taxable note to be comparable to the recent CCIA issue's rate of 3.5%. The note maturing in late April, which was issued last year, has a rate of 2.2%. The 1.3% difference on the $4,350,000 note is $56,550.00.

I became aware of the pending agreement at the staff meeting last Thursday and asked John Kearney to discuss this with Alexis Batten of Parker McCay.

Per Alexis, the note would still be taxable if the agreement were executed at any time during the one-year term of the note.


Frank
nicholas marchese wrote:
Frank:
 
What is the total amount additional or the difference of what it would have been?  Wasn't anyone aware of this?  Could we have signed the agreement in May and avoided this?
 
Nick 
 

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Date: Tue, 23 Mar 2010 14:01:16 -0500
From: [email protected]
To: [email protected]; [email protected]; [email protected]; [email protected]
Subject: [Fwd: RE: Orens/Gloucester Redevelopment Agreement]

This boils down to a higher interest rate when the Bond Anticipation Note is rolled over in April of this year. The impact of the higher interest rate will be on the 2011 budget.

-------- Original Message --------

Subject:	RE: Orens/Gloucester Redevelopment Agreement
Date:	Mon, 22 Mar 2010 16:19:16 -0400
From:	Alexis B. Batten <[email protected]>
To:	John Kearney <[email protected]>
CC:	Frank J. Robertson <[email protected]>
References:	<B25A635C9BF94E54A0A9033E2DC84232@johnbkearney>

Mr. Kearney and Mr. Robertson,

 

After reviewing the Redevelopment Agreement you provided, and speaking with both our 103 attorney and Mr. Norcross, we have decided that the Notes will need to be issued as Taxable.  The Agreement, as drafted, creates a partnership between the City and the Redeveloper (a for-profit entity).  Such a joint venture equals private use for tax purposes.  This decision is based upon our understanding that this Agreement will be signed within the year (i.e. the lifespan of the Note to be issued in April).  If this is incorrect, please let us know.

 

If you having any questions, please do not hesitate to contact me.

 

Thank you,

 

Alexis

 

----------------------

Alexis B. Batten, Esquire

PARKER McCAY P.A.

Three Greentree Centre

7001 Lincoln Drive West

P.O. Box 974

Marlton, NJ  08053-0974

P: 856-985-4067

F: 856-988-8167

[email protected]

www.parkermccay.com

 

VISION - KNOWLEDGE - RESULTS

 

 

 

 

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From: John Kearney [mailto:[email protected]]
Sent: Friday, March 19, 2010 4:35 PM
To: Alexis B. Batten
Subject: Fw: Orens/Gloucester Redevelopment Agreement

 

----- Original Message -----

From: John Benson

To: John Kearney

Cc: [email protected] ; Guy Orens ; [email protected]

Sent: Monday, March 01, 2010 6:28 PM

Subject: Orens/Gloucester Redevelopment Agreement

John - I am enclosing the final Redevelopment Agreement, together with all exhibits for the Meadowbrook Mews project in Gloucester, and a redline showing changes from the last draft that you reviewed.  It is my understanding that Bob Cohen is delivering this agreement to his contact at the City.  Please let me know if you have any questions.  Thanks, John Benson

 

 

 

Please note a change of address effective March 15, 2010:

Sirlin Gallogly & Lesser, P.C.

123 S. Broad Street, Suite 2100

Philadelphia, PA 19109

 

Phone and fax numbers and email addresses are unchanged.  

 

John D. Benson, Esquire

Sirlin Gallogly & Lesser, P.C.

1529 Walnut Street, Suite 600

Philadelphia, PA 19102

Phone:  215-864-9700

Fax:  215-864-9669

[email protected]