CITY OF CENTRAL FALLS
CITY COUNCIL MEETING
CITY HALL COUNCIL CHAMBERS
MONDAY, MARCH 28, 1994
AT 7:30 P.M.
A SPECIAL MEETING OF THE CENTRAL FALLS CITY COUNCIL WAS HELD ON THE ABOVE DATE IN THE CITY HALL COUNCIL CHAMBERS AT 8:03 P.M.
| COUNCILMAN MATTHEWS | PRESENT |
| COUNCILMAN GOES | ABSENT |
| COUNCILMAN PAQUETTE | PRESENT |
| COUNCILWOMAN MOREAU | PRESENT |
| COUNCILMAN CANAVAN | PRESENT |
QUORUM PRESENT.
CITY COUNCIL PRESIDENT ROBERT CANAVAN PRESIDED.
COUNCIL PRESIDENT CANAVAN LED THE ASSEMBLY IN THE PLEDGE OF ALLEGIANCE.
CITY CLERK ISSA READ THE CORRESPONDENCE FROM MR. TONY VENTUTULO OF DETENTION CENTER ASSOCIATES.
MOTION WAS MADE BY COUNCILMAN MATTHEWS AND SECONDED BY COUNCILWOMAN MOREAU NOT TO ACCEPT THE LETTER AS PART OF INVESTIGATION.
| COUNCILMAN MATTHEWS | YES |
| COUNCILMAN GOES | ABSENT |
| COUNCILMAN PAQUETTE | YES |
| COUNCILWOMAN MOREAU | YES |
| COUNCILMAN CANAVAN | YES |
MOTION CARRIED 4 YES 0 NO 1 ABSENT.
DANIEL J. ISSA, CITY CLERK TO ROBERT J. CONNELLY, JR. ESQ.;
CHARLES M. KOUTSOGIANE, ESQ. & IRA SCHREIBER, ESQ; RE: INTERVIEWS FOR LEGAL SERVICES FOR THE CITY COUNCIL.
MOTION TO ACCEPT AND PLACE ON FILE WAS MADE BY COUNCILMAN PAQUETTE AND SECONDED BY COUNCILWOMAN MOREAU.
| COUNCILMAN MATTHEWS | YES |
| COUNCILMAN GOES | ABSENT |
| COUNCILMAN PAQUETTE | YES |
| COUNCILWOMAN MOREAU | YES |
| COUNCILMAN CANAVAN | YES |
MOTION CARRIED 4 YES 0 NO 1 ABSENT.
PAUL L. BARRETT, DIRECTOR OF ECONOMIC DEVELOPMENT STATE OF RHODE ISLAND, THOMAS MOSES, LEGAL COUNSEL PORT AUTHORITY AND EARL QUEENAN FINANCE PORT AUTHORITY WERE ALL PRESENT TO ANSWER QUESTIONS RELATIVE TO THE DETENTION FACILITY.
MR. BARRETT EXPLAINED THAT HE JUST IS COMPLETING HIS THIRD WEEK IN THE DEPARTMENT.
COUNCIL MEMBERS QUESTIONED THE THREE GUESTS.
THE MAYOR'S OFFICE AND DCA INITIATED DISCUSSIONS WITH THE PORT AUTHORITY.
MR. BRODY REPRESENTED THE UNDERWRITER, DILLON REED.
IGA WAS RELIED ON IN THE BEGINNING.
USMS COULD NOT SIGN A BINDING CONTRACT. ANNUAL APPROPRIATION CREDITS USED, STANDARD PROCEDURE. CLAUSES IN LEASES ALSO REFLECT SAME.
MR. MOSES INDICATED THAT THE STATE FELT THERE WAS A USE FOR THE FACILITY IF THE PROJECT FAILED. PRIME OBJECTIVE WAS FOR PROJECT TO SUCCEED.
STATE DEPT. OF CORRECTIONS HAD REVIEWED THE PROJECT.
REDUCTION IN PRISON POPULATION WAS NOT ANTICIPATED. INS, BOP AND OTHER FEDERAL AGENCIES WERE INVOLVED. OTHER FACILITIES HAVE BEEN FINANCED USING THESE SAME DOCUMENTS FROM THE BUREAU OF PRISONS.
PAYMENT TO THE CITY IN LIEU OF TAXES IS NOT A GUARANTEED AMOUNT.
NON PROFIT CORPORATION OWNS THE FACILITY AND THIS IS STANDARD PROCEDURE.
COUNCILMAN MATTHEWS QUESTIONED THE GUESTS.
MR. MOSES RESPONDED THAT FULL DISCLOSURE WAS REQUIRED AND STATEMENT IS THE SAME THING. THE ANDERSON REPORT AND OFFERING STATEMENT PROMPTED THE PURCHASERS TO BUY THE BONDS. THEREFORE, SUFFICIENT GROUNDS AND INVESTIGATION WAS DONE. DOWNSIDE RISK WAS CONSIDERED, BUT THEY WENT IN TO PROJECT EXPECTING FEDERAL DETAINEES.
FORECLOSURE DISCUSSED AND EXPLAINED. HOME MORTGAGE FORECLOSURE WAS GIVEN AS AN EXAMPLE. PORT AUTHORITY WOULD ACT, NOT BONDHOLDERS. BOND PROCEDURE EXPLAINED. $2.3 MILLION DISPERSED TO DEVELOPERS. PORT AUTHORITY QUESTIONED AND THE BROWN AND ROOT CO. RECEIVED. TO PAY FOR GNP PRICE ON CONTRACT AS WELL AS EXPENSES INCURRED. ENTIRE PROJECT WAS BROUGHT INTO PORT AUTHORITY. PROJECT WAS NOT POSSIBLE WITHOUT PORT AUTHORITY.
COUNCILMAN MATTHEWS QUESTIONED CAPACITY. PORT AUTHORITY WOULD LIKE MAXIMUM PROFITABILITY, DOES NOT WANT TO DEFAULT. UNDERWRITING EXPLAINED. MARSHALS SERVICE CONTRACT IMPORTANT. DAILY AVERAGE DISCUSSED. THEY FELT THAT BONDHOLDERS ARE MORE INTERESTED IN PROFIT THAN THE PROJECT HOUSING NORTH CAROLINA PRISONERS.
DETENTION CENTER BOARD MEMBERS NOT HERE TONIGHT. STATE CORRECTIONS REVIEWED. WOULD USE IF STATE TOOK OVER.
COUNCILWOMAN MOREAU QUESTIONED.
COUNCILMAN MATTHEWS QUESTIONED. IF THERE WAS ANY DECEPTION, IT WAS FROM MARSHALLS SERVICE.
COUNCIL PRESIDENT CANAVAN COMMENTED.
COUNCILWOMAN MOREAU QUESTIONED.
COUNCILMAN MATTHEWS QUESTIONED.
PORT AUTHORITY WENT INTO THE PROJECT AT REQUEST OF CITY, THE COUNCIL, THE MAYOR, ETC. STATE BENEFIT WAS JOBS, AND DEVELOPMENT. SIGNIFICANT PROJECT DOLLAR WISE, AUTHORITY ACTS IN BEHALF OF INVESTORS. STATE WOULD TAKE OVER PROJECT TO PREVENT DEFAULT. DEBT SERVICE DISCUSSED. ISSUING AGENCY (AUTHORITY) WOULD BE COME JUNK BONDS IF DEFAULT. IT WOULD LITERALLY TAKE AUTHORITY OUT OF BUSINESS. STATE GOVERNMENT CAME IN TO HELP CITY. DEFAULT WOULD HURT WHOLE STATE. BONDS ARE NOT INSURED. DIRECT BOND SALE.
COUNCIL PRESIDENT CANAVAN THANKED THE GENTLEMEN FOR COMING AND ANSWERING QUESTIONS.
MOTION TO ADJOURN WAS MADE BY COUNCILMAN MATTHEWS AND SECONDED BY COUNCILMAN PAQUETTE. TIME: 9:05
__________________________
DANIEL J. ISSA
CITY CLERK
INTERPRETERS FOR THE HEARING IMPAIRED AVAILABLE UPON 72 HOUR NOTICE MADE AT THE CITY CLERK'S OFFICE.