4C, Resolution 2010-019, Approval for Issuance of Revenue Notes for Northwestern

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��. EN HILLS MEMORANDUM DATE: March 29, 2010 TO: Honorable Mayor and City Council Members FROM: Sue Iverson, Acting City Admi�istrator 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 pro�ess and fees for those seek�ng 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. North�vestern College is requesting �nancing 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 harrnless 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. The City's bond counsel has reviewed the application and has filled out the required DEED ap�lication. The City Council adopted Resolution 2009-029 on October 26, 2009 calling for a public hearing on November 30, 2009. The City held a public hearing on November 30, 2009, and gave preliminary approval to the proposed issuance at that same meeting. Attached are a resolution and a memo from the City's Bond Counsel detailing the bond issuance and requesting final approval. 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. Co�ncil Action Council to adopt Resolution 2010-019, a resolution authorizing the issuance, sale, and delivery of Educational Facilities Revenue Notes (Northwestern �ollege Proj ect), Series 2010; approving the form of and authorizing the execution and delivery of the notes and the related documents; and providing for the security, rights, and remedies with respect to the notes. City Council Meeting \�1Vletro-inet\ardenhills�Admin\Council�Agendas & Packet Information\2010\3-29-10 Regular�Packet Information\Northwestern College_.doc Page 1 of 1