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<br />.. <br /> <br />MAR-24-99 WED 04:22 PM <br /> <br />1'.02 <br /> <br />. <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />Arden Hills Public Works Facility - Financing OptionsiDcvclopment Concepts <br /> <br />Fundamental issues: <br /> <br />Who exercises control over the building and operation of the facility and to what degree. <br />What construction Ifmancial scenarios are feasible. <br />What are the costs of the various options. <br />Timing iSSlles and opportunities. <br /> <br />Control issues: <br />Range of alternatives for design, constrUction, spacc and operations listed from leJ.st control to most controL <br /> <br />Lease relationship in joint facility where the City does not have an equity interest. <br />Lease relationship in a joint facility where the City has an equity stake lhat is do~t <br />Contracted faciHty shared with commercial entity (or other) and prepared for Arden Hills as a lessee. <br />Arden Hills only facility on leased land. <br />Arden HiI16 owned facility in another City. <br />Arden Hills owned facility in Arden Hills. <br /> <br />Ex. 1- County built site on leased National guard land with All as a lea~ <br />Ex. 2- Ardcn HiUs built site on leased National Guard land with Ramsey County or other as leas~ <br />Ex. 3. Shared facility with National guard or Army Reserve on land not owned by lB. <br />Ex. 4- AH facility on leased commercial land in Red Fox - C:aey Fox district. <br />Ex. 5- All facility on leased/owned commercial land in a neighbor city. <br />Ex. 6- Arden Hills owned facility in Arden Hills. <br /> <br />Construction/fmance alternatives: <br />Lease - Purchase option <br />Features: Geneflll obligation and not considered statutoI)' debt. <br />Maturities 3 to 12 years. <br />Real property secures the transaction <br />Available from commercial bank as package with costs rolled in. Terms renegotiable,. <br />Funds placed with select group of private investors. <br />Advantages: Custom simplified borrowing, Fast turnaround, One - stop shoping. No referendums, ownership at <br />end of amortization. <br />Disadvantages: Higher net costs than Revenue backed GO (probable), limited maturities, Real property must <br />secure the deht. <br /> <br />General Obligation Bonds-Double BarreU(~ <br />Features: GO bonds secured with revenues from Enterprise funds ( Sewer & Water). <br />Advantages: No referendums, maturities lITe adjustable to cash flow. Low cost <br />Disadvantages: Takes longer to execute and requires more staff work. Not renegotiille. <br /> <br />True lease options: <br />Advantages: Rapid closing timc:s, low clusing C<.Jsu;. :Rates may be more favorable compared to ncw construction. <br />City eontribu.tes to tax base. <br />Disadvantages: Usually short term or limited term agreements which makes long tern cost control difficult. City <br />contributes to tax base. <br /> <br />Cost { finance consider1llions: <br />