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<br />, <br /> <br />. <br />. Minutes of Regular Council Meeting <br />May 23, 1983 <br />Page Three <br /> <br />. <br /> <br />-Utilities and Assessments - require payment in full of <br />public utility costs for over-sizing etc., as well as <br />all connection and permit charges and previous levied <br />and pending assessments <br />-Private Placement - require private plscement with <br />investors who-WiIl sgree to not circulate or sell, <br />after receipt, in the municipal market <br />-Plans and Specifications - reserve right of finsl <br />approval or disapproval of plans and specs by the Council <br />-Prior Review - not set a public hearing, or adopt any <br />preliminary resolutions until the reports are received <br />-City Consultants - require applicant to pay all costs <br />of consultants, together with City administrative ex- <br />pense, whether or not the City agrees to finance the <br />project <br />-Equity - require applicant to establish and maintain <br />significant equity in the structure and to maintain a <br />reserve balance or desposit with the City. <br />-Guarantee - require applicant to guarantee payment of <br />principsl and interest and premium of the bonds issued <br />-Completion - require completion of the project by the <br />applicant with his own funds should the bond proceeds <br />be inadequate <br />-Hold Harmless - require a bond or insurance to sssure City <br />is held harmless. <br />-Administrative Fee - applicsnt pay the City the sum of <br />$10,000 or 1%~-the amount financed, whichever is <br />greater, to be used by City for any expenses in con- <br />nection with the project, or for any other City purpose <br />-Denial - City reserve right to deny application at any <br />time before actual issuance of bonds without liability <br />to City. <br />-No Assig~m~ - applications shall name the real parties <br />in interest, with no right to assign to any other person <br />or firm <br />-Prime Interest Rate - not consider spplications if <br />prime rate is below 12% <br /> <br />Mulcahy asked Popovich whether, In preparing his draft polley <br />and procedure memo, he had talked with Councl I members or staff <br />with respect to its content. Popovich said that he had not. <br /> <br />Some of the concerns discussed were: <br /> <br />. <br /> <br />-special purpose structures, some of which are applicable <br />to another use, whl Ie others may not be; a polley for <br />consideration <br />-federal arbitrage regulations - limits fees you can <br />get; could probably reduce by 1% <br />-adverse effect on existing businesses i~~2~~er con- <br />sideration to be evaluated by Councl 1;~I~'~lnancln~ gives <br />an unfair competitive advantage on a large amount of money. <br />-number of projects financed In this manner In Minnesota? <br />Popovich said he didn't have this Information tonight, but <br />would mal I It to Councl I; noted that not all applications <br />are carried through and not al I prejects are constructed. <br />-number turned down by the State? Popovich said there are <br />virtually none turned down. <br />-Is there any Implied moral or legal obligation for City <br />to take part In this type of financing? Popovich said there <br />Is a practical problem, If there Is a default and City must <br />defend It. <br />-asked Popovich's reaction to the concept that it <br />monies out of competition for private borrowers. <br />said that IRB's are not considered objectionable <br />Investors. <br />-asked Popovich If he thinks the law wll I be extended beyond <br />1986? Probably, but with restrictions. <br /> <br />takes <br />Popovich <br />by private <br /> <br />-3- <br />