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<br />ARDEN HILLS CITY COUNCIL WORK SESSION - JULY 21, 2008 <br /> <br />9 <br /> <br />C. Presbyterian Homes Conduit Financing Request <br /> <br />Steve Fenlon, Midwest Healthcare Capital, introduced himself indicating he has <br />been hired by Presbyterian Homes to work with municipalities and banks on <br />financing issues. <br /> <br />City Administrator Moorse explained Presbyterian Homes is requesting the City <br />be the issuer of some tax exempt financing for a project worth $4.9 million. He <br />handed out the executive summary of this project to the Council. <br /> <br />Mr. Fenlon stated much of Presbyterian's workers office in a building on Harnline <br />Avenue in Roseville, MN which was in need of an addition. He explained Arden <br />Hills was approached for tax exempt bonds as well, and the City has proposed a fee <br />of 10/0. Mr. Fenlon understood that the bonding process was lengthy but asked the <br />City to consider his request and offered a $10,000 fee along with covering all city <br />expenses. <br /> <br />Councilmember Holden questioned if a 1 % fee was used in the past. <br /> <br />Mr. Fenlon indicated a fee was not added in the past except in large metropolitan <br />areas. He noted this now changed over the past five years with the majority of <br />cities charging fees. <br /> <br />Ms. Kvilvang interjected stating it has been her experience in working with cities <br />that a 1 % fee is standard for bonds. She noted this was all part of conduit <br />financing. <br /> <br />Mr. Fenlon stated he sees his request as an opportunity for the City of Arden Hills <br />use its authority to sell bonds, which will be discarded on December 31 st at <br />midnight it is not used. He added that the project would not be completed within <br />the City but would allow the City to use their bank qualification. Mr. Fenlon <br />explained that two other cities have been approached and have offered the funds at <br />Y2%. <br /> <br />Discussion ensued regarding the possibility of funding $4.9 million in conduit <br />financing for Presbyterian Homes. Past bond financing projects were discussed. <br /> <br />Mayor Harpstead questioned the Council if they were in favor of staff negotiating <br />a tax exempt conduit financing with a fee lower than 1 %. <br />