CCP 05-27-2003 - Laserfiche WebLink

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. . 13",<- /,~ ff 5 Mounds View PUBLIC SCHOOLS John M. Milas, Director AJmlllidrativlSuPPorl May 13, 2003 Mr. Aaron Parrish Director of Community Services City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112-5794 Re: Borrowing/Leasing through the Arden Hills Enterprise Funds Dear Mr. Parrish, The MoundsView Public Schools is planning to share a maintenance facility with Ramsey County and the City of Arden Hills. The School District's initial plan was to pay for its share of the construction cost out of its operating budget. Unfortunately, the circumstances of the District have changed and the District does not have a balance that would permit it to fund the estimated $1.3 to $1.5 million dollars the maintenance and operations space requires. The District respectfully requests that it be permitted to borrowllease from the Enterprise Fund in the manner the City finds appropriate. It would be our plan to pay off the leaselloan over a period of 5-1 0 years. At the end of that period we would expect to hold clear title to our portion of the facility. Ideally, we would prefer a 10-year lease at a fixed rate for three or more years and with an option for the School District of early payment beginning with year six. Since interest rates are particularly low right now, we recognize the need for the City to protect itself if interest rates should begin to escalate. It is important to understand that the District must commit to the final project in the next month or two and that our Board will need a financing commitment. In addition, we may have to obtain approval from the Department of Education since the facility will cost more than $500,000. We would like to have our agreement in place by August 1st if the project moves forward and begins in October 2003. However, if the project is delayed we may have more time to establish our agreement. 1959 Hamline Avenue N. . Roseville, MN 55113-1664 .651-639-6006 phone. 651-639-6203 fax. 'WWW.moundsviewschookorg