Information withheld on troubled Poplar Bluff development agreement

POPLAR BLUFF, Mo. -- Questions surrounding Poplar Bluff's agreement with Eight Points developers may have been answered Wednesday during a special city council meeting, but that information is not being shared with the public.

A presentation was held behind locked doors for members of the city council, the city's finance committee and the recently created industrial development corporation.

Officials have said the IDA will be used to issue $13.4 million in bonds to pay debt owed to Eight Points.

The city is incurring an additional $50,000 in interest costs each month it delays issuing the bonds, interim city manager Mark Massingham said.

The bonds were to be issued in December, under the city's agreement with Eight Points.

City council members have debated in recent weeks whether the bonds should be issued by the city or the IDA and whether they should be issued in increments of $5,000 or $100,000.

These were among the topics discussed in the closed session, according to documents provided to the Daily American Republic by an individual who attended the closed session.

The individual, who asked not to be named, said they did not feel the meeting should have been closed to the public.

Both topics have been discussed in open session by the city council during previous meetings, without any indication they felt the matter needed to be moved to a closed session.

The value of the IDA in issuing the bonds also was discussed Wednesday by council members in open session prior to the closed meeting.

They also gave no indication at that time they believed it should be a closed matter.

Other Eight Points Redevelopment Bond Issue Workshop discussion topics included offers made by Eight Points representatives to the city earlier this month regarding the allocation of bond money and sales tax funds collected from the city's two transportation development districts.

This offer also was discussed previously in open session without objection by council members.

The meeting was closed because of potential litigation, city attorney Robert Smith said.

This is an exemption to Missouri's open meetings law; however, the law also states that the meeting "shall be closed only to the extent necessary for the specific reason announced to justify the closed meeting."

No discussion should be held in closed session that does not specifically relate to the reason used to justify closing the meeting, according to the Sunshine Law.

Representatives of bond underwriter Stifel Nicolaus & Co., Eight Points and bond counsel Gilmore and Bell attended the meeting, the DAR has been told.

Council and committee members also received explanations concerning how money from sales tax collection within the tax incremental financing district is handled. TIF funds will be used to pay for the bonds.

Pertinent address:

Poplar Bluff, Mo.