6A, Conduit Debt Issuance - Laserfiche WebLink

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��. EN HILLS ME11�OR:AND�JIVI �ATE: November 30, 2009 T�: Honorable Mayor and �ity Council �Vle�bers Ron M�orse, City Adminisirator FROM: Sue Iverson, �inance D�rector/�'reasurer SUBJEC�': Northwesterr� College �'�.blic Hearing for Tax-exempt �i�.ancing �ack�round �'he City Council approved a"Private Activity Revenue Bond Financing" procedure which incl�des an application process and fees for those seeking to request the City to issue c�nduit debi on their behalf. Northwesterr� Coliege has filed an application along with the required application �ee of $504 io the City. Northwestern College is requesti�g �nancing for a new facility — Cornmunit�y Life Corr�rr�ons {siudent u�ion) for iis campus. T�e maximum amount of financing requested is $9,OQO,OOOa `Tl�e zor�ing of this project is under tl�e te�-rr�s and conditions of the PLTD agreement between t�e College and the City approved in October, �007. T�e City will be reimbursed ar�d he�d harnzless for a11 out-of-pocke� expenses related to the fi�ancing according to the C�ty's appl�cation process and the application filed. According to the City's policy, the City will receive 1/8 of 1% (.125%) of ihe outstandi�g principal balance of the bonds annua�ly, �he first year this would amount to � 11,250 and the bonds are from 5 to 25 yea�-s. A representative from l�Torthwestern Caliege �ill be in at�end.ance at t�e �neeting to answer any questions. �he Ci�y's bond counsel has reviewed the app�ication and has fiiled out ihe required DEED applica�ion. The Cit� Council adoptecl Resolutior� 2009-02� on October 26, 2009 ca�ling for a public hearing on November 30, 2009. Bond C�u�sei will be present at the hearir�g to answer an� questions. Attached are a resolution and a memo from tl�e City's �ond Counsel detailing the bond issuanc� ar�d the steps that need to be taken next. After the Public Hearing, �he Council wil� be asked t� adopt �Zesolution 2009-036 giving prelim�nary ap�roval to the proposed issuance of rev�n�� notes under 1VIir��eso�a Sta�utes, Sections 469.152 through 469.165 l, as amended. A copy of Nor�thwest�rn College's application and attacl�r�ents (including the DEE� applicaiion), wa� pro�ided �o the Ciiy Council in the October 2�, 200� agenda packet. Ci�y Counc�l 1V�eeting \\1Vietro-inet\ardenhills�Admin\Council�Agen�as & Packei Information�2009�11-30-09 Reguiar�'ack�t Infflrmation\Northvc�estern College_Public_Hearing.doc Page � of 2