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<br />ARDEN HILLS CITY COUNCIL - July 28, 2008 <br /> <br />12 <br /> <br />F. Request from Presbyterian Homes for Conduit Financin2 <br /> <br />Finance Director Susan Iverson stated that Presbyterian Homes has proposed the <br />City sponsor their conduit financing. She stated that Presbyterian Homes has <br />offered Arden Hills an issuer's fee of Y2 of 1 % of the par amount of the series 2008 <br />note provided the City Council agrees to act on additional tax-exempt bond <br />offerings for a fee of Y2 of 1 % with a $75,000 limit on anyone tax-exempt bond <br />issue for the next three years. She stated that Staff recommends that the Council <br />accept Y2 of 10/0 of the par amount of the series 2008 note, but does not recommend <br />the provision to agree to act as an Issuer in additional tax-exempt bond offerings for <br />a fee of Y2 of 1 % with a $75,000 limit on anyone tax-exempt bond issue for the <br />next three years. <br /> <br />Mayor Harpstead stated that he agreed with Staff's recommendation to approve <br />the proposal for this year but not commit for future years. <br /> <br />MOTION: Councilmember Grant moved and Councilmember Holden <br />seconded a motion to Approve the Request from Presbyterian Homes <br />for Conduit Financing for the issuance of the 2008 notes and to accept <br />the Y2 of 1 % fee in addition to reimbursement of the costs incurred by <br />the City of Arden Hills associated with this request. <br /> <br />Finance Director Iverson stated that the City would want to specify the fee as Y2 of <br />1 % of the par amount of the Series 2008 note. <br /> <br />MOTION: Councilmember Grant moved and Councilmember Holden <br />seconded a motion to amend the motion to read: Approve the Request <br />from Presbyterian Homes for Conduit Financing for the issuance f the <br />2008 notes and to accept a fee of Y2 of 1 % of the par amount of the <br />Series 2008 note in addition to reimbursement for costs incurred by the <br />City of Arden Hills associated with this request. <br /> <br />Councilmember Holmes asked for clarification regarding the issuance of bonds in <br />the future for Presbyterian Homes. <br /> <br />Mayor Harpstead stated that the issuance of bonds in the future was not covered <br />by the motion on the floor. <br /> <br />Councilmember Holmes stated that the original request for Arden Hills to agree to <br />do conduit financing for Presbyterian Homes included the issuance of future bonds. <br />