7A, Resolution 2009-036 - Laserfiche WebLink

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��. EN HILL5 MEMORANDUM DATE: November 30, 2009 TO: Honorable Mayor and City Council Members Ron Moorse, City Administrator FROM: Sue Iverson, Finance Director/Treasurer SUBJECT: Northwestern College Public Hearing for Tax-exempt Financing Back�round -, 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 �led 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 �nancing requested is $9,000,000. The zoning of this proj ect 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. The City Council adopted Resolution 2009-029 on October 26, 2009 calling for a public hearing on November 30, 2009. Bond Counsel will be present at the hearing to answer any questions. Attached are a resolution and a memo from the City's Bond Counsel detailing the bond issuance and the steps that need to be taken next. After the Public Hearing, the Council will be asked to adopt Resolution 2009-036 giving preliminary approval to the proposed issuance of revenue notes under Minnesota Statutes, Sections 469.152 through 469.1651, as amended. A copy of Northwestern College's application and attachments (including the DEED application), was provided to the City Council in the October 26, 2009 agenda packet. City Council Meeting \�1Vletro-inet\ardenhills�Admin\Council�Agendas & Packet Information\2009\11-30-09 Regular�Packet Information\Northwestern College_Public Hearing.doc � Page 1 of 2