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NEW BUSINESS 8A MEMORANDUM DATE: May 12, 2014 TO:Honorable Mayor and City Council Members Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Host approval for issuance of Financing and Refinancing bonds for Educational Purposes for Northwestern College Action Requested Council Action or direction to staff on how to proceed with this matter. This may include: 1.Approval of Resolution 2014-029. 2.Authorizing the Mayor to sign a letter granting approval from the City Council on the refinancing. 3.Direct staff to have further discussions with Northwestern College. Background At the request of University of Northwestern-St. Paul, the City of Arden Hills issued adjustable Rate Revenue Bonds in 2010 to finance the construction and equipping of a portion of a student center located on the campus. The loan agreement stipulated that the th administrative fee is on-eighth (1/8) of one percent per year on the outstanding principal amount of the bond paid semi-annually. We have been receiving this fee. Discussion University of Northwestern-St. Paul has submitted an application to the City with respect to the requested host approval and has submitted a non-refundable application fee in the amount of $500 according to our City procedure for application for Private Activity Revenue Bond Financing. Counsel, John Utley, if the current bonds are paid off and reissued through another issuer, the City will no longer collect the administrative fee as the original obligation will have been paid. This letter includes in the attachments a proposed resolution and/or a sample letter to provide City Council 12 Page of