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Minutes of Regular Council Meeting, April 8, 1985 Page five Original motion carried unanimously. (5-0) (Miller to submit to Metro Council). . Cash Defeasance Proposal, Steven Mattson (Juran and Moody) - Resolution No. 85-17 Council was referred to Mattson's letter of 4/4/85 and attachments thereto relative to the proposed defeasance project. Mattson explained that the City has three outstanding General Obligation Bonds (1972 - 1977) prior to arbitrage regulations (5/15/78); explained that the City has accumulated more money than is due and payable - $1,835,000 in these three issues. Mattson explained that the City could free up the excess monies by calling in the bonds or by defeasance. Mattson reported defeasance has been done in nine other Minnesota cities. Mattson said that $1,611,893.94 is the amount they feel will be freed up to be used by the City for any City purpose. Mattson reviewed the Full Cash Defeasance Schedule and the month-to-month escrow cash flow (May I, 1985 - November 1. 1997); noted that the securities shown yield about 11% (average). Treasurer Lamb said, in general, he feels this is the way to go; said it will free up money; said he is not optimistic that interest rates will soar. Mattson said they must have a trustee; Juran and Moody feel First Trust of St. Paul has a good program that works well. Mattson said they also need a CPA to advise whether the securities purchased are sufficient; proposes Voto, Reardon, Tautges and Company; reported that Juran and Moody has had good experience with them, and has experienced reasonable charges for their services. Mattson noted that the City would be buying securities at dealers' cost. not on a retail basis. In discussion, it was asked if deregulation will have an impact on this de- feasance schedule. Mattson said it would not. Mattson said the City may use the money immediately or re-invest it, as it sees fit. Hicks moved. seconded by Hansen, that Council adopt Resolution No. 85-17, APPROVING DEFEASANCE PROGRAM FOR CERTAIN OBLIGATION BONDS OF THE CITY. Motion carried unanimously. (5-0) Gambling License - St. Joseph's Society for the Little Sisters of the Poor, Blue Fox Inn Council was referred to Lease Agreement between the applicant. Lois Blomberg, and Thomas Cossack (Blue Fox Inn), and attached diagram indicating proposed location of pull-tab sales within the building. Blomberg requested approval of the gambling license permitting pull-tab sales at the Blue Fox Inn. and asked that the 3D-day waiting period be waived. In discussion, Blomberg was asked what portion of each dollar goes to the St. Joseph Society. Blomberg explained that the booth will be operated by members of the Society and designated people at the Blue Fox Inn; if sales people are paid to operate the booth, they will be paid by the Society; noted that most of the time it will be operated by Society volunteers. Blomberg said that the income anticipated is unknown; they have been told it is estimated between $15.000 and $50,000 per year; "we hope they are right". Blomberg said that only private clubs have been able to sell pull-tabs until now, and they have no costs. . Tom Cossack was asked what advantages pull-tab operation provides the Blue Fox. Cossack said it could bring in customers, and the $600 per month rent will help him. Peck moved, seconded by Sather, that Council approve the gambling license to permit pull-tabs to be sold at the Blue Fox, and approve waiver of the 30-day waiting period. Motion carried unanimously. (5-0)