7A Resolution 2009-036 Giving Preliminary Approval to the Proposed Issuance of Revenue Notes

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� �i�EN'�HILLS MEMORANDUM DATE: November 30, 2009 TO: Honorabie Mayor and City Council Members Ron Moorse, City Adrni�ist�ator FROM: Su� Iverson, Finance DirectorlTreasurer SUB.�ECT: Northwestern College �'ublic Hearing for Tax-exempt Financing Background The City Councii approved a"Private Activity Revenue Bond Financittg" procedure which includes an application process and fees for those seeking to request the City to issue conduit debt an their behal£ Northwestern Callege has filed an application along wit� the reqUired application %e of $500 to the City. Narthvt�estern College is request�ng financing for a new facility — Community Life Commons {student union) for its campus. The maacimum amount of fnancing requested is $9,000,000. The zoning of this project is under the terms and conditions of the PUD agreement between the CoIlege and ihe C�ty approved in Ocfober, 2007. The City will be reim.bt�rsed and held harmless for all out-of-pocket expenses :related to the financing accordijzg to the City's application process and the application filet�. According to �he City's policy, the City will receive I/8 of 1% {.125%) of the outstanding principal balance of the bonds ar�nually, the first yeax this would amount ia $11,250 and the bonds are from 5 io 25 years. A representative from Northwestern Callege will be in a�tendance at the rneeting to answer ar�y questions. The City's bond counsel has reviewed the application and has filled aut the required DEED application. The City Council adopted ResoIution 2009-029 on October 26, 2d09 calling for a pubtic hearing on November 30, 2009. Bond Counsel will be present at the hearing to answer any questions. Attached are a resolution and a memo from the City's Bond Counsel detailing the bond issuance and the steps that need to be taken next. After the Public Hearing, the Council wi�l be asked #o adopt Resolution 2009-036 giving pretiminary approval to the praposed issuance of revenue notes under Minnesota Statutes, Sections 469.152 through 469.1651, as amended. A copy of Northwestern College's application and attachments (including the DEED application), was provided to the City Council in the October 26, 2009 agenda packef. City Council Meeting 11Metro-inetlardenhillslAdininlCounciIlAgendas & Packet Tnformation12009111-30-09 AegularlPacket InformationlNorthwestern College_Public Hearing.doc � � Page 1 of 2