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LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA JUNE 23, 2014 - 6:00 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Presentation - Law Enforcement Against Prohibition (LEAP) (Ken Abraham) 2. Expiration of Downtown Dover Partnership (DDP) Loan Guarantee Extension (During their meeting of June 10, 2013, Council approved the extension of the Downtown Dover Partnership (DDP) loan guarantee for a period of one (1) year effective July 1, 2013 on the loan between PNC Bank and the Downtown Dover Partnership.)(Staff recommends extension of the Downtown Dover Partnership loan guarantee with PNC Bank through March 1, 2017.) 3. Proceeds from Sale of Real Estate (Staff recommends that the net proceeds from the sale of governmental fund real estate be credited to the Capital Asset Reserve for future capital projects) 4. Proposed Financial Reforms (Councilman Slavin) 5. Adjournment by 7:00 p.m. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2014\06-23-2014 LF&A.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Finance DATE: 06/23/14 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Downtown Dover Partnership – Loan Guarantee, City of Dover APPROVALS: Committee & Council EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): Loan Payments to be paid from tenant lease payments TIMETABLE: Upon approval RECOMMENDED ACTION: Extension of the Downtown Dover Partnership loan guarantee with PNC Bank through March 1, 2017. BACKGROUND AND ANALYSIS The Downtown Dover Partnership has negotiated new terms for the PNC Loan collateralized by real estate on Governors Avenue (old “Acme” Property). City Council provided the City’s guarantee on the loan in March 2008. The guarantee was extended for one year effective July 1, 2013. PNC is requesting continuation of the City’s guarantee through the term of the loan. The reason for this request is a) LTV greater than 80% and b) Marketability of the “Acme” property, value and strength of tenants and lease stream. The bank has agreed to extend the “Acme” loan to March 1, 2017 and begin amortizing the loan based on a 20 year amortization.

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Finance DATE: 06/23/14 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Net proceeds from sale of real estate APPROVALS: Committee & Council EXHIBITS: EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): Loan Payments to be paid from tenant lease payments TIMETABLE: Upon approval RECOMMENDED ACTION: Net proceeds from the sale of governmental fund real estate will be credited to the Capital Asset Reserve for future capital projects. BACKGROUND AND ANALYSIS The City Council approved the sale of Garrison Oak Technical Park Lot 12 (10.684 acres) for $1,000 per acre in accordance with the City’s economic development goals. The City netted $10,623 from the sale of Lot 12 as follows: Contract Sales Price $10,864.00 Seller Settlement Charges (241.00) Net Proceeds $10,623.00 The current City real estate disposition policy does not specify which account the net proceeds are credited to. Staff’s recommendation is to credit the Capital Asset Reserve and develop a formal policy for future transactions. The GAAP accounting for this transaction will require recordation of a $44,140.65 loss on sale of fixed assets. The purchase of the Garrison Oak Technical Park was completed with an award of a $2 million grant receipt from the State of Delaware. The City recorded the purchase of the land (381.8425 acres) at $1,933,277.16 or $5,063.02 per acre.