7A, Northwestern College Application for Tax-Exempt Financing

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� DEN HILLS MEMORANDUM DATE: October 26, 2009 TO: Honorable Mayor and City Council Members Ron Moorse, City Administrator FROM: Sue Iverson, Finance Director/Treasurer SUBJECT: Northwestern College Application for Tax-exempt Financing Backimound The City Council approved a "Private Activity Revenue Bond Financing" procedure which includes an application process and fees for those seeking to request the City to issue conduit debt on their behalf. Northwestern College has filed an application along with the required application fee of $500 to the City. Northwestern College is requesting financing for a new facility — Community Life Commons (student union) for its campus. The maximum amount of financing requested is $9,000,000. The zoning of this project is under the terms and conditions of the PUD agreement between the College and the City approved in October, 2007. The City will be reimbursed and held harmless for all out-of-pocket expenses related to the financing according to the City's application process and the application filed. According to the City's policy, the City will receive 1 /8 of 1 % (.125%) of the outstanding principal balance of the bonds annually, the first year this would amount to $11,250 and the bonds are from 5 to 25 years. A representative from Northwestern College will be in attendance at the meeting to answer any questions. The City's bond counsel has reviewed the application and has filled out the required DEED application (this is in draft form and some information is still being updated). If the City chooses to honor the request, a resolution calling for a public hearing on November 30, 2009 will need to be adopted. A copy of the application and attachments (including the DEED application), and Resolution 2009-029 calling for the public hearing are included for your review. Also included is the City's application procedure for your reference. City Council Meeting \\Metro-inet\ardenhills\Admin\Council\Agendas & Packet Information\2009\10-26-09 Regular\Packet Information\Northwestern College_Request.doc Page 1 of 2