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Flood Diversion Board of Authority—December 11, 2014 5 <br />allows only very limited access onto properties. He asked the legal <br />team to review whether there are any conflicts with this license <br />agreement and Clay County policy. Erik Johnson said he will look into the issue. Motion carried. <br />10. FINANCE UPDATE <br />Special Assessment District Financing <br />Michael Montplaisir, Cass County Auditor, said the Finance Committee met on December 10th. He said the Diversion Project Assessment Committee (DPAC) met earlier this week, and an update was given at the Finance Committee meeting. The <br />DPAC has met over the last two years to establish a method to assign direct and indirect <br />benefits. <br /> Mark Brodshaug and Rocky Schneider from AE2S provided a presentation on the special assessment district process. Mr. Brodshaug said the sales tax for Fargo and <br />Cass County is expected to generate $700 million, which will cover the North Dakota <br />local cost share for the project. The rationale behind establishing a special assessment <br />district is because sales tax financing is not considered an attractive financing method <br />to borrow funds and comes with a higher interest rate than special assessment bonding. A special assessment district will also provide a way to finance the maintenance costs <br />of the project. The CCJWRD has the ability under North Dakota law to administer <br />assessment districts. The CCJWRD met earlier today and approved two resolutions to <br />begin the legal process to set up a special assessment district, and are using $725 <br />million as the estimated project cost to assess. The schedule and the voting process was discussed with an estimated timeline of five months to complete. <br /> <br />Mr. Vanyo stressed that the special assessment district will not be used for additional <br />revenue but as leverage for bond financing. He said Fargo and Cass County sales taxes <br />raised will cover the North Dakota local cost share of the project. <br />Draw Request No. 3 <br />Mr. Montplaisir said the Finance Committee approved an additional draw of $25 million <br />from the U.S. Bank Loan. He said two separate draws of $20,060,200 have already <br />been done to cover monthly diversion expenses. The additional request is a result of projected cash flow needs for December. <br />Mr. Mahoney moved and Ms. Otto seconded to approve Draw <br />Request No. 3 from the U.S. Bank Loan in the amount of $25 million. <br />On roll call vote, the motion carried unanimously. <br /> Voucher approval <br />The bills for the month are for legal services with Erik Johnson & Associates and Dorsey <br />& Whitney LLP. <br />MOTION, passed Mr. Mahoney moved and Ms. Otto seconded to approve the vouchers in the amount of $94,069.87 for November, 2014. On roll <br />call vote, the motion carried unanimously. <br /> <br />11. NEXT MEETING DATE <br />The next meeting will be held on Thursday, January 8, 2015, at 3:30 PM.