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ARDEN HILLS CITY COUNCIL—MAY 12, 2014 9 The motion carried (5-0). 8. NEW BUSINESS A. Refinancing of the 2010 Bond Series—University of Northwestern Director of Finance and Administrative Services Iverson stated that at the request of University of Northwestern, 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 borrower pay the City's expenses and the City's administrative fee. The City's administrative fee is one-eighth (1/8th) of one percent per year on the outstanding principal amount of the bond paid semi-annually. The City has been receiving this fee. Director of Finance and Administrative Services Iverson reported that the University of Northwestern 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 the City's procedure for application for Private Activity Revenue Bond Financing. Director of Finance and Administrative Services Iverson explained that in a letter from the City's Bond 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 consent. It also includes a financing plan explanation from the University of Northwestern. She explained that, per the letter from John Utley, there were three possible actions the Council could take, one of the two previously mentioned, or they could have staff engage in further discussions with the University and bring the matter back. Director of Finance and Administrative Services Iverson commented that the City's Bond Counsel, John Utley, was present to discuss this matter with the City Council. John Utley, Bond Counsel, discussed the host approval for the bond refinancing in further detail with the Council. He indicated that the joint powers entity that funded the bonds was requiring local approval from the three entities involved in order for the refinancing to proceed. Mayor Grant questioned why the City of Arden Hills would want to be involved in this bond refinancing for the University of Northwestern. Mr. Utley stated that it was within the City's power to assist the University of Northwestern with this issue and the request has been made of Arden Hills. Councilmember Holden indicated that the City has collected administrative fees on the bond. She did not object to the bond refinancing as it assisted a business in the community. Mayor Grant asked what the City would collect for administering the current bonds.