HomeMy WebLinkAbout7A, Northwestern College Application for Tax-Exempt FinancingPrep ared By: Sue Iverson,
Finance Direct or/Treasurer
Council Meeting
Date: October 26, 2009
Northwestern College Application for Tax -Exempt Financing
North Funding source:
Budgeted Amount:
N/A
Actual Amount:
N/A
N/A
ation: • n a public hearing
Recommend a resolution calling College
esolution 2009-029, °f Northwestern , g
motion to adopt R tes for the benefit d providing
1' A m issuance of revenue no _ .165 as amended, an p
regarding the is ' ons 469.152 469
g esota Statutes, Sections under Minn of the revenue notes.
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preliminary approval to the issuance
Su ortin Documents:
the attache9
d memo from Sue Iverson afinanc ngated October 26� 200
1 • See lication for Tax-exempt
2. Northwestern College application
3. Deed application. Bement.
4, Indenmlfication letter of agreement.
5. Resolution No. 2009-0for Applicatio9 n for Private Activity Revenue Bond Financing
I6. Arden Hills procedure
� 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
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Council Action
If the Council would like to proceed with the request, then a motion to adopt Resolution 2009-
029, a Resolution calling a public hearing regarding the issuance of revenue notes for the benefit
of Northwestern College under Minnesota Statutes, Sections 469.152 — 469.165, as amended, and
providing preliminary approval to the issuance of the revenue notes, would be in order.
City Council Meeting
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Part IV
Application for Tax-exempt Finand
4Commerclal, Industrial, Health Care or other Non -Housing Projects)
1. Applicant
a, Business Name:
b. Business Address:
c. Business Form:
d. Authorized Representative
e. Principal contact person
2. Purpose of Requested Financing:
a. New Facility:
Northwestern College
3003 Snelling Ave. No, Roseville, MN 55113
Corporation
Douglas R. Schroeder, VP for Business/CFO
Douglas R. Schroeder
Aq1 ^Aq1 _q1 9n
Community Life Commons (student union) for Campus
3. Give brief description of the nature of business, principal products, etc.
Founded in 1902, Northwestern College is a nondenominational Christian college that
integrates the educational philosophy of "faith, learning and living„ through two focuses: higher
education and media,
The higher education focus offers a vast array of opportunities within a strong academic
program. Northwestern offers 45 bachelor degrees ranging from elementary education,
business and pastoral studies to broadcasting/electronic media and psychology, and offers two
master's degrees in organizational leadership and theological studies.
The core component is the traditional day -school program, which enrolls over 1,700 students of
which somewhat over 1,200 are residential students in college provided housing. Graduate and
continuing education programs serving over 900 students, include FOGS degree completion,
Center for Distance Education, Center for Graduate Studies, and the Christian Center for
Communications in Quito, Ecuador. Northwestern's campus in the cities of Arden Hills and
Roseville encompasses 107 acres and 12 (now to be 13) buildings.
4. Estimated Project Costs;
Land
Building
Equipment
Architectural, Engineering
Cost of Issuance
Capitalized Interest, including discount
Other (Landscaping)
Total Project Costs:
S. Amount of Financing Requested:
$15A00,000
$ 3,5008000.
$_ . 1,500,000
$.1.100"000
$211500,000
$. 5,OOOtOOO (37.2% of project costs)
6. Type of Financing Proposed:
a. Bands x Tax-exempt Mortgage
b. Expected Terra of Financing: 5 to 25 years
c. Security: Unsecured & Letter of Credit
7. Business Profile:
a. Is the business located in the City of Arden Hills now? Yes
b. Number of employees in City:
i. Before this project: 650 staff & faculty: 1.000+ students (including Roseville)
Ii. After this project: up to 800 staff & faculty; 1,300-1,400 students (including
Roseville) when traditional student enrollment reaches
2,400 for which this building is required in order to obtain
c. Approximate Annual Revenue: $60,000100O
d. Length of time in business 1902
e. Length of time in business in City
f. Do you have plants in other locations? Where? Yes, Roseville, MN; Madison,
Wisconsin; Sioux Falls, SD; Fargo, ND; Duluth, MN;
Waterloo & Des Moines, IA} Quito, Ecuador
8, Names of:
a. Underwriter: N/A (Northwestern anticipates private placement of the Bonds}
b. Bond Counsel: Mr. Stephen Budul, Kennedy & Graven
c. Underwriter's Counsel: N1A see above
9. what is your Target Gate for:
a. Construction start:
b. Construction completion
10, Attachments:
Construction started October, 2009
May, 011
a. Project description See attached
b. Draft application to Department of Trade and Economic Development — together with
necessary attachments To be provided by Stephen Budul, Kennedy & Graven
c. initial application fee: Included
d. indemnification Letter of Agreement: Included
I certify that the information provided above contains no misrepresentations, omissions or
concealments of material facts and that the information given is true and complete to the best of nay
knowledge. I have been furnished a copy of the Procedure for Application to the City of Arden bills for
Private ctivity Revenue Bond Financing and am aware of its content and agree to be bound by its
terms an the terms of thedindemalfication letter.
Signatur Date
Project Description
Part IV — 10 a
The Billy Graham Community life Commons, a cornerstone project in the heart of Northwestern's
campus will provide new dining facilities, an expanded campus store, study lounges, student and
meeting facilities, all of which will serve as a centerpiece of the college, providing students, faculty,
staff, alumni and guests a vibrant community gathering space,
The Billy Graham Community life Commons (CLC) building will serve as the signature community
building on Northwestern"s campus, The design and placement of this new building in conjunction
with the newly designed campus green will enhance the beauty of Northwestern's already picturesque
campus, Named for the world-renowned evangelist whose Billy Graham Evangelistic Association
(BGEA) made its home in Minneapolis from 1950-2004, this structure will be the only building in the
Twin Cities bearing Graham's name,
The building was planned in November 2007 as part of Northwestern's Envision Excellence Capital
Campaign for Student Spiritual life.
The 70,000-square foot: facility will house two levels to serve as a "family room" for students, faculty,
staff and guests. other functions in addition to the campus dining center, campus store and student
lounges include study areas, office space for student organizations, classrooms and auxiliary campus
service functions. The building's intended designed is to create abundant designated space for people
to connect, build relationships and stimulate spiritual and intellectual growth as the campus lives out
its mission of providing Christ -centered higher education.
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Part VI
Addendum to Applications
Appendix A_:
A brief description of the organizational structure of the Applicant, including parent subsidiary, and
affiliate organizations (if applicant is other than an individual)
Northwestern College is an Independent non-profit organization and is governed by a Board of
Trustees of not less than 15 and not more than 25 individuals. The Trustees who serve without
compensation are responsible for overseeing the affairs and mission of the Corporation. The
Board appoints a President (who is a member of the Board) who is responsible to the Board for
the operation of the College and for the achievement of its mission and implementation of its
policies,
The College (one organization) has two primary focuses (higher education and media). The
President's Cabinet (senior management team) reflects this structure with a Vice President for
Academic Affairs and a Senior dice President for Media serving as the chief operating officers
for the two focuses supported by other members of the senior management team overseeing
support functions of Advancement, Marketing, Finances, Facilities, Human Resources, and
Technology.
Northwestern Foundation is a public charity, non-profit corporation. This mission of the
Foundation is to secure, receive and manage planned gifts on behalf of the College. The
majority of members of the Foundation's Board of Directors are also members of the College's
Board of Trustees.
Lincoln Drive Properties, a limited liability corporation, was founded in 2006 with the sole
purpose of acquiring and managing property on behalf of the College. The majority of the
members of the Lincoln Drive Properties Board of Directors are also member of the College's
Board of Trustees.
Both the College and the Foundation are exempt from state and federal income taxes, the
College under Section 501(c)(3) and the Foundation under Section 509(a)(1) of the Internal
Revenue Code.
Appendix B;
Statement of Applicant's business history, including any multi -family rental projects.
While founded. in 1902, the Arden Hills history of Northwestern began in 1970 with the purchase of the
"'Nazareth Hall" campus from the Archdioceses of St. Paul. Classes on Northwestern's "new campus„
began in the fall of 1972 with somewhat less than 200 students with accreditation from the North
Central Association of Colleges being received in 1978.
From that time forward until today, Northwestern"s higher education and media ministries have
continued to grow, During the past thirty plus years, property and facility additions and remodeling
have occurred to accommodate the growth of the College. These facilities include several student
residences, the Berntsen Library, Totino Fine Arts Center, and the Ericksen Center (athletics facility)
and now the Billy Graham Community Life Commons.
During the late 1990's the College added the FOGS (adult degree completion) program and the Center
for Distance Education. Today Northwestern awards more PSEO (post secondary education
opportunity) college credit hours to Minnesota high school students than any other college or
university in the State of Minnesota, including the U of M. In 2005 Northwestern once again began
offering master's degrees. During the past several years Northwestern students have regularly
received Fulbright Scholarships and this past year two of Northwestern's faculty members were
awarded Fulbright Fellowships.
Northwestern's 20,000-plus alumni positively impact society through careers in law, education,
medicine, government, computer technology and Fortune Soo businesses, as well as in missions,
churches, and parachurch organizations.
The Media focus began in 1949 when Twin Cities radio station KTIS went on the air thanks to $44,000
generated by students, Northwestern's second President William F. "Billy" Graham (for whom the new
Community Life Commons building is being named) was the first on -air voice. Today, Northwestern
owns and operates 14 noncommercial, listener supported radio stations in Minnesota, North and
South Dakota, Iowa and Wisconsin with a weekly audience exceeding half a million listeners. In 2003
the new Mel Johnson Media Center was completed which serves as the headquarters for
Northwestern Media and KTiS as well as housing the College's academic department of
communication.
Today Northwestern operates with an approximate $60,000,000 budget. Somewhat over 20% of the
operating budget is attributed to the Media focus, somewhat over 10% is attributed to the Graduate &
Continuing Education programs, and the remainder is attributed to the Traditional Undergraduate
program.
Appendix C:
1. The applicant's legal counsel:
Mr. Grover Sayre — 612-332-1030
Leonard, O'Brien, Spencer, Gale, & Sayre
100 South 5'h Street, #2500
Minneapolis, MN 55402
2. The applicant's accountant:
Mr. Don Loberg — 612-397-3064
LarsonAllen, Weishair & Co, LLP.
220 South 5th Street, Suite 300
Minneapolis, MN 5502
3. The architect of the project:
Mr. Laurence Page — 612-851-5048
Perkins & Will
84 Tenth Street South, Suite 200
Minneapolis, MN 55403
4. The engineer of the project:
Ms. Tina wyffels — 763-843-0436
BKBM
5939 Brooklyn Blvd.
Minneapolis, MN Ms. Tina Wyffels — 763-843-0436
BKBM
5939 Brooklyn Blvd.
Minneapolis, MN 55429
5. The general contractor of the project:
Adolfson & Peterson Construction -- 952-544-1561
6701 vilest 23rd Street
Minneapolis, MN 55426
Appendix D:
1. Present ownership of the proposed project site and the applicant's interest therein.
The Billy Graham Community Life Commons building is being built on Northwestern's
main campus jointly located in Arden Hills and Roseville, MN.
2, Present zoning of the project site and a description of what city land use approvals are needed
for this project
The zoning of Northwestern College and this project are under the terms and conditions
of the PUD agreement between the College and the City approved in October, 2007.
3. The projected number of new employees to be added to the applicant's permanent work force
because of the project {for Commercial, industrial or Health Care only},
While initially the construction of the 70,000 square foot Community life Commons will
only directly result in the additional employment of a few regular maintenance and
custodial employees, the student growth that is expected to occur due to the addition
of this new building will result in additional faculty, student development, and support
services staff in the coming years. Student ,growth from the present 1,700 Student FTE
level to the ultimately desired 2,400 Student FTE level is projected to result in
approximately 150 additional faculty and staff positions plus an additional 300-400
student employment positions. The addition of the building is a key and integral
component necessary for Northwestern's ability to grog and serve its future student
enrollment.
4. other financing attempted or available to the Project including any interim financing.
As part of its ability to provide funding for this project, Northwestern conducted and
concluded a 3 year capital funding campaign. An additional source of funding for the
project Northwestern will be the application and reallocation other internal assets. See
the proforma analysis of the project in Appendix F.
5. Statement regarding whether or not this project has all required city approvals. If this project
does not have all of the required approvals, list the approvals still needed and a tentative time
schedule.
Northwestern has received all required city approvals for this project,
Appendix E:
indemnification letter
Appendix F:
Proforma analysis of the Project
Project Cost:
Community Life Commons Building
Campus Green
See attached
$20,4001000
$ 11100,000
Total Project Cost $21)5001000
Project Funding;
Existing funding from Capital Funding Campaign $10,250,000
Existing funding from internal Northwestern assets $ 2,1501000
Existing funding for Campus Green - previous tax-exempt $ 1,100,000
bond financing*
Privately placed bond/note financing $ 8,000J000
Total Project Funding $21,500,000
* Remaining funds available from Northwestern's 2008 tax-exempt bond financing with the
Colorado Educational and Cultural Facilities Authority (CECFA) for financing of the College's new
campus road, new parking facility and campus landscaping,
STATE OF MINNESOTA
MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT
BUSINESS AND COMMUNITY DEVELOPMENT DIVISION
APPLICATION FOR APPROVAL OF INDUSTRIAL DEVELOPMENT BOND
PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.152 THROUGH 469.165
(Please submit this form in duplicate -all supporting data in single copy only)
Date: , 2009
The governing body of the City of Arden Hills, Minnesota, hereby applies to the Minnesota Department
of Employment and Economic Development (Department) for approval of a proposed Industrial
Development Bond issue as required by Minn. Stat. § 469.152 - 469.165.
Address of issuer: City of Arden Hills, Minnesota
1245 West Highway 96
Arden Hills, Minnesota 55112
Attn: Sue Iverson, City Finance Director/Treasurer
Telephone: (651) 792-7800
Fax: (651) 634-5137
We have entered into preliminary discussions with:
Firm: Northwestern College Attorney: Grover Sayre
3003 Snelling Avenue North Leonard, O'Brien, Spencer, Gale, & Sayre
Roseville, MN 55113 100 South Fifth Street, Suite 2500
Attn: Douglas R. Schroeder, Minneapolis, MN 55402
VP for Business and CFO
Name of Project: Northwestern College Project
This firm is engaged primarily in (nature of business): education.
The proceeds from the sale of the Industrial Development Bonds will be used to finance the construction
and equipping of an approximately 70,000 square foot facility, which will provide new dining facilities,
an expanded campus store, student lounges, study areas, office space for student organizations,
classrooms, and meeting spaces, to be located in the City.
Address of Project: , Arden Hills, Minnesota.
Expenditure Amount
Acquisition of land
0
New construction
15,4001000
Demolition and site preparation
Acquisition and Installation of Equipment
3,5001000
Fees: Architectural, engineering, inspection,
1,5001000
fiscal, legal, administration, or printing
Construction Interest
0
Initial Note Reserve
0
Costs of Issuance
0
Contingencies
0
Other
15100,000
Total $21..500MOV
*Only a portion of the cost of the project, in an amount not to exceed $9,000,000 will be financed with the
proposed tax-exempt notes.
It is presently estimated that construction will begin on or about October 2009, and will be complete on or
about May 2011. When completed, there will be approximately 0 new jobs created by the project at an
annual payroll of approximately $0.0, based upon currently prevailing wages. There is existing job
provided by business.
There will be jobs created by construction of the project. Number of hours: Average wage
level: $
Repayment of the proposed issue will be amortized over a period of years.
The following exhibits are furnished with this application and are incorporated herein by reference:
1. An opinion of bond counsel that the proposal constitutes a project under Minn. Stat. § 469.153,
subd. 2.
2. A copy of the resolution by the governing body of the issuer giving preliminary approval for the
issuance of its revenue bonds and stating that the project, except for a project under Minn. Stat. §
469.153, subd. 2(g) or 0), would not be undertaken but for the availability of Industrial Development
Bond financing.
3. A comprehensive statement by the municipality indicating how the project satisfies the public
purpose and policies of Minn. Stat. § 469.152 - 469.165.
4. A letter of intent to purchase the bond issue or a letter confirming the feasibility of the project from a
financial standpoint.
5. A statement signed by the principal representative of the issuing authority to the effect that upon
entering into the revenue agreement, the information required by Minn. Stat. § 469.154, subd. 5 will
be submitted to the Department (not applicable to projects under Minn. Stat. § 469.153, subd. 2(g) or
6. A statement signed by the principal representative of the issuing authority that the project does not
include any property to be sold or affixed to or consumed in the production of property for sale, and
does not include any housing facility to be rented or used as a permanent residence.
7. A statement signed by a representative of the issuing authority that a public hearing was conducted
pursuant to Minn. Stat. § 469.1545 subd. 4. The statement shall include the date, time and place of the
meeting and certify that a draft copy of this application with all attachments was available for public
inspection and that all interested parties were afforded an opportunity to express their views.
8. Copies of notice(s) as published which indicate the date(s) of publication and the newspaper(s) in
which the notice(s) were published.
9. Provide a plan for compliance of employment preference of economically disadvantaged or
unemployed individuals. (See Minn. Stat. § 469.154, subd. 7.)
We, the undersigned, are duly elected representatives of the City of Arden Hills, Minnesota, and solicit
your approval of this project at your earliest convenience so that we may carry it to a final conclusion.
Signed by: (Principal Officers or Representatives of Issuing Authority; type or print official's name
on the line to the left of the signature line. Thank you.)
Stan Harpstead
Mayor
Mailing Address:
Ron Moorse
City Administrator
Mailing Address:
Signature
City of Arden Hills, Minnesota
1245 West Highway 96
Arden Hills, Minnesota 55112
Signature
City of Arden Hills, Minnesota
1245 West Highway 96
Arden Hills, Minnesota 55112
This approval shall not deemed to be an approval by the Department of the State of the feasibility of the
project or the terms of the revenue agreement to be executed or the bonds to be issued therefor.
Authorized Signature, Minnesota Department of
Employment and Economic Development
Please return to:
Date of Approval
Minnesota Department of Employment and Economic Development
Mark Lofthus
Business and Community Development Director
1st National Bank Building
332 Minnesota Street, Suite E200
St. Paul, Minnesota 5 5101-13 51
Phone: 651-259-7432 Fax: 651-296-5287
STATEMENT CONCERNING A PROPOSED PROJECT
UNDER MINNESOTA STATUTES, SECTIONS 469.152 TO 469.165
The undersigned, being the duly qualified and acting Mayor and City Administrator of the City of
Arden Hills, Minnesota (the "City"), certify that the City has been provided by Northwestern College, a
Minnesota nonprofit corporation (the "Borrower"), with certain information concerning a proposed
Project (as defined hereinafter) under the Minnesota Municipal Industrial Development Act, Minnesota
Statutes, Sections 469.152 to 469.1651, as amended (the "Act"). On the basis of such information, the
City Council of the City (the "Council"), by resolution adopted November 30, 2009 (the "Resolution"),
has given preliminary approval to the proposed Project and the financing thereof by the issuance of
revenue obligations of the City, subject to approval of the Project by the Commissioner of the Minnesota
Department of Employment and Economic Development. The following are factors considered by the
Issuer in determining to give preliminary approval to said Project:
1. The Project consists generally of the construction and equipping of an
approximately 70,000 square foot facility, which will provide new dining facilities, an expanded
campus store, student lounges, study areas, office space for student organizations, classrooms,
and meeting spaces, to be located in the City (the "Project").
2. Kennedy & Graven, Chartered, bond counsel for the Project, is of the opinion
that the Project constitutes a "project" within the meaning of Minnesota Statutes, Section
469.153, Subdivision 2(b).
3. Based on representations of the Borrower as to the nature of the Project, the City
believes that the Project is compatible with present and projected development in its area.
4. Nothing has come to the attention of the City to indicate that the proposed
financing of the Project would adversely and unfairly affect any other business enterprise located
in the City.
5. Pursuant to the Resolution, the City will comply with the requirements of
Minnesota Statutes, Section 469.154, Subdivision 5.
6. Based on representations of the Borrower as to the nature of the Project, the
Project does not include any property to be sold or affixed to or consumed in the production of
property for sale, and does not include any housing facility to be rented or used as a permanent
residence.
7. Based on representations of the Borrower as to the nature of the Project, the
Project does not include an airplane, a private luxury box, a facility primarily used for gambling,
or a store the principal business of which is the sale of alcoholic beverages for consumption off
premises.
8. A public hearing was conducted on November 30, 2009, at City Hall, located at
1245 West Highway 96 in the City, pursuant to Minnesota Statutes, Section 469.154,
Subdivision 4, to consider the proposal that the City undertake and finance the Project. A draft
copy of the "Application for Approval of Industrial Development Bond Project Pursuant to
Minnesota Statutes, Sections 469.152 through 469.165" with attachments was available for public
inspection. All interested parties were afforded an opportunity to express their views.
9. The Borrower will undertake to encourage that the employment opportunities
made available by the Project will, if feasible, be offered to individuals who are unemployed or
economically disadvantaged as contemplated in Minnesota Statutes, Section 469.154,
Subdivision 7. The Borrower will comply with the reporting requirements set forth in said
Section 469.154, Subdivision 7.
(The remainder of this page is intentionally left blank.)
CITY OF ARDEN HILLS, MINNESOTA
CIE
con
Stan Harpstead
Mayor
Ron Moorse
City Administrator
(Signature Page to Statement Concerning a Proposed Project)
, 2009
Mark Lofthus
Minnesota Department of Employment
and Economic Development
Business and Community Development Director
1 St National Bank Building
332 Minnesota Street, Suite E200
St. Paul, Minnesota 5 5101-13 51
$990009000
City of Arden Hills, Minnesota
Educational Facilities Revenue Notes
(Northwestern College Project)
Series 2009
Dear Mr. Lofthus :
Based upon a preliminary review of certain facts and circumstances presented to us concerning the project
proposed to be financed by issuance of the above -referenced revenue Notes, it is our opinion that such
project qualifies as a "project" within the meaning of Minnesota Statutes, Section 469.153,
Subdivision 2(b).
KENNEDY & GRAVEN, Chartered
Julie A. Eddington
, 2009
Mark Lofthus
Minnesota Department of Employment
and Economic Development
Business and Community Development Director
1"National Bank Building
332 Minnesota Street, Suite E200
St. Paul, Minnesota 55101-13 51
$990009000
City of Arden Hills, Minnesota
Educational Facilities Revenue Notes
(Northwestern College Project)
Series 2009
Dear Mr. Lofthus :
VIA MESSENGER
Enclosed please find the following documents which are submitted for your approval of the
above -mentioned project pursuant to Minnesota Statutes, Section 469.154, Subdivision 5:
1. Two copies of the Application to the Minnesota Department of Employment and
Economic Development for Approval of Industrial Development Bond Project;
2. Opinion of Bond Counsel that the proposal constitutes a project under Minnesota
Statutes, Section 469.153, Subd. 2(b);
3. A resolution of the City Council of the City of Arden Hills, Minnesota, adopted
November 30, 2009, providing preliminary approval to the Project;
4. Statement Concerning a Proposed Project under Minnesota Statutes, Sections 469.152 to
469.165;
5. Letter of Intent to purchase or place the above -referenced Notes from the purchasers,
which confirms the feasibility of the Project from a financial standpoint;
6. Affidavit of Publication of Notice of Public Hearing; and
Mr. Mark Lofthus
, 2009
Page Two of Two
7. Letter from Northwestern College, which constitutes a plan for compliance with employment
preference for economically disadvantaged or unemployed individuals.
As Bond Counsel for this issue, please direct any communications concerning this Project to us at the
above address. If you have any questions or comments as to this financing, feel free to call me at any
time.
Sincerely,
Julie A. Eddington
Enclosures
(LETTERHEAD OF NORTHWESTERN COLLEGE)
2009
Mark Lofthus
Minnesota Department of Employment
and Economic Development
Business and Community Development Director
1 St National Bank Building
332 Minnesota Street, Suite E200
St. Paul, Minnesota 5 5101-13 51
$990009000
City of Arden Hills, Minnesota
Educational Facilities Revenue Notes
(Northwestern College Project)
Series 2009
We have formally considered the economic feasibility of the above -referenced Notes (the
"Notes") to be issued under the provisions of Minnesota Statutes, Section 469.152 to 469.1651, as
amended, to provide funds for a proposed project by Northwestern College, a Minnesota nonprofit
corporation. Proceeds of the Notes shall be applied to finance the construction and equipping of an
approximately 70,000 square foot facility, which will provide new dining facilities, an expanded campus
store, student lounges, study areas, office space for student organizations, classrooms, and meeting
spaces, to be located in the City. The aggregate face amount of the revenue Notes proposed to be issued
to finance the Project is presently estimated not to exceed $9,000,000.
Northwestern College will be privately placing the above -referenced Notes with friends and
alumni of the College. We have already obtained sufficient pledges to purchase the full principal amount
of the Notes.
NORTHWESTERN COLLEGE
M1
Its
(LETTERHEAD OF NORTHWESTERN COLLEGE)
City of Arden Hills, Minnesota
1245 West Highway 96
Arden Hills, MN 55112
, 2009
$%000,000
City of Arden Hills, Minnesota
Educational Facilities Revenue Notes
(Northwestern College Project)
Series 2009
In accordance with Minnesota Statutes, Section 469.154, Subdivision 7, as amended (the "Act"),
Northwestern College, a Minnesota nonprofit corporation (the "Borrower"), hereby agrees to make every
effort to comply with the requirements of the Act for the purpose of providing employment to those
individuals who are unemployed or who are economically disadvantaged and who otherwise qualify for
employment with the Borrower.
It further is the intent of the Borrower to provide such reports to the Commissioner of the Department of
Employment and Economic Development of the State of Minnesota as may be required by the Act or
other laws of the State of Minnesota.
NORTHWESTERN COLLEGE
Its
PART VJI
INDEMNIFICATION I.,ETTER OF AGREEMENT
The Mayor of the City of Arden Hills
and Members of the City Council
City of Arden Hills
1245 Highway 96
Arden Hills, MN 55112
RE: Application of " or Tax Exempt Revenue Bond Financing by the City of
Arden Dills
Bear Mayor and Members of the City Council:
This letter of agreement is given by , a
PAT1- a under the
laws of Minnesota ("Applicant") as required by the City 9f Arden Hil s, T44csota 1n connection
with its consideration of an application for tax exempt revenue bond financing for the proj ect
described in the application.
Applicant agrees as follows:
1. .Applicant agrees to pay or reimburse the City for any and all costs and expenses which the
City may incur in connection with its consideration of the project and the granting of tax
exempt revenue bond financing therefor, whether or not the project is preliminarily approved
by the City, whether or not the project is approved by the State of Minnesota, whether or not
revenue bond financing is finally approved by the City, whether or not the bonds are issued
and sold, and whether or not the project is carried to completion.
2. Applicant agrees to indemnify and hold the City, its officers, employees and agents harmless
against any and all losses, claims, damages, expenses or liabilities, including attorneys fees
incurred in their defense, to which the City, its officers, employees and agents may become
subject in connection with the CitVs consideration, issuance or sale of the bonds for
Applicant's project and the carrying out of the transactions contemplated by this agreement
and any resolutions adopted, or agreements executed by the City in connection with the
issuance of its bonds for this project_
I Applicant hereby releases the City, its officers, agents and employees from any claims, causes
of action, losses, damages, or liabilities which it may have against the City, its officers,
agents, and employees or which it may incur in connection with: the City's consideration of
the application for industrial development revenue bond financing for Applicant's project; the
failure of the City, in its discretion, to issue tax-exempt revenue bonds for Applicant's project;
the issuance and sale of the bonds; the construction of the project; or any other matter or thing
of any type or nature whatsoever which may arise in connection with the foregoing.
14
Applicant is aware of the Citys application and administrative fee structure for tax exempt
financing and agrees and covenants that all such fees will be paid in the amount and at the
tunes required.
Dated: (Applicant)
its
15
. G O
follows:
RESOLUTION NO. 2009-029
RESOLUTION CALLING A PUBLIC HEARING REGARDING THE ISSUANCE
OF REVENUE NOTES FOR THE BENEFIT OF NORTHWESTERN COLLEGE
UNDER MINNESOTA STATUTES, SECTIONS 469.152-469.165, AS AMENDED,
AND PROVIDING PRELIMINARY APPROVAL TO THE ISSUANCE OF THE
REVENUE NOTES
BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota (the "City"), as
Section 1. Recitals.
1.01. Minnesota Statutes, Sections 469.152 to 469.165, as amended (the "Act"), authorizes the
City to issue revenue bonds or notes to finance, in whole or in part, the costs of the acquisition,
construction, reconstruction, improvement, betterment, or extension of a project constituting any
properties, real or personal, used or useful in connection with a revenue -producing enterprise, whether or
not operated for profit.
1.02. Northwestern College, a Minnesota nonprofit corporation (the "Borrower"), has
proposed that the City issue tax-exempt revenue notes or obligations pursuant to the Act in one or more
series in the approximate principal amount not to exceed $9,000,000 (the "Notes") and loan the proceeds
of the Notes to the Borrower to finance the construction and equipping of an approximately 70,000
square foot facility, which will provide new dining facilities, an expanded campus store, student lounges,
study areas, office space for student organizations, classrooms, and meeting spaces, to be located at on
the portion of the Northwestern Campus located within the City (the "Project").
1.03. Pursuant to Section 469.154, subdivision 4, of the Act and Section 147(f) of the Internal
Revenue Code of 1986, as amended, prior to undertaking the financing of the Project, the City is required
to conduct a public hearing with respect to the proposed financing of the Project.
Section 2. Public Hearing and DEED Application.
2.01. The City Council shall meet at 7:00 p.m. on Monday, November 30, 2009, to conduct a
public hearing on the Project and issuance of the Notes therefor as requested by the Borrower.
2.02. Pursuant to Section 469.154 of the Act, prior to the issuance of the Notes by the City, the
Commissioner of the Minnesota Department of Employment and Economic Development ("DEED")
must approve the Project on the basis of an application submitted by the City with all required
attachments and exhibits (the "DEED Application").
2.03. Prior to submitting the DEED Application to the Commissioner of DEED requesting
approval of the Project, the Council must conduct a public hearing on the proposal to undertake and
finance the Project and a notice of such public hearing must be published at least once, not less than
fourteen (14) days, nor more than thirty (30) days, prior to the date fixed for the hearing in the official
newspaper of the City (and a newspaper of general circulation in the City if the official newspaper is not
a newspaper of general circulation in the City).
2.04. The City Administrator is hereby authorized and directed to publish notice of the public
hearing, in substantially the form attached hereto as EXHIBIT A to this resolution, in the Shoreview -
Arden Hills Bulletin, the official newspaper of the City and a newspaper of general circulation in the
City. The notice shall be published at least once, at least fourteen (14) days prior to the date of the public
hearing but not more than thirty (30) days prior to the date of the public hearing.
2.05. In accordance with Section 469.154 of the Act, the City Administrator is hereby
authorized and directed to cause a draft copy of the DEED Application, together with drafts of all
required attachments and exhibits, to be prepared by Kennedy & Graven, Chartered, as bond counsel.
The DEED Application, together with all attachments and exhibits, shall be made available for public
inspection in the office of the City Administrator during regular business hours of the City. The City
Administrator and other officers, employees, attorneys, and agents of the City are hereby authorized to
provide DEED with any information needed for this purpose, and the City Administrator is authorized to
initiate and assist in the preparation of such documents as may be appropriate to the Project.
Section 3. Preliminary Approval.
3.01. The City hereby gives preliminary approval to the issuance of the Notes in the original
aggregate principal amount not to exceed $9,000,000 to finance all or a portion of the costs of the
Project, subject to final approval following the preparation of documents related to the Notes, and subject
to final determination by the City that the financing of the Project and the issuance of the Notes are in the
best interest of the City.
3.02. The law firm of Kennedy & Graven, Chartered, is authorized to act as bond counsel and
to assist in the preparation and review of necessary documents relating to the Project and the Notes to be
issued in connection therewith. The City Administrator and other officers, employees, and agents of the
City are hereby authorized to assist bond counsel in the preparation of such documents.
(The remainder of this page is intentionally left blank.)
Approved by the City Council of the City of Arden Hills, Minnesota, this 26th day of October,
►K11119
CITY OF ARDEN HILLS, MINNESOTA
Stanley Harpstead, Mayor
ATTEST:
Ronald Moorse, City Administrator/Clerk
EXHIBIT A
CITY OF ARDEN HILLS, MINNESOTA
NOTICE OF A PUBLIC HEARING WITH RESPECT TO THE
ISSUANCE OF REVENUE NOTES PURSUANT TO MINNESOTA
STATUTES, SECTIONS 469.152 TO 469.165, AS AMENDED, FOR
THE BENEFIT OF NORTHWESTERN COLLEGE
NOTICE IS HEREBY GIVEN that the City Council of the City of Arden Hills, Minnesota (the
"City"), will conduct a public hearing on Monday, November 30, 2009, at 7:00 p.m. at 1245 West
Highway 96 in the City of Arden Hills, Minnesota, to consider a proposal by Northwestern College, a
Minnesota nonprofit corporation (the "Borrower"), for the issuance of revenue notes in one or more
series (the "Notes") under Minnesota Statutes, Sections 469.152 to 469.165, as amended, to finance a
proposed project consisting of the construction and equipping of an approximately 70,000 square foot
facility, which will provide new dining facilities, an expanded campus store, student lounges, study areas,
office space for student organizations, classrooms, and meeting spaces, to be located at [ADDRESS] in
the City (the "Project"). The facilities proposed to be financed will be owned by the Borrower.
At the public hearing, the City Council will consider adoption of a resolution approving the
Project and giving approval to the issuance of the Notes to finance the costs of the Project. The
aggregate face amount of the revenue Notes proposed to be issued to finance the Project is presently
estimated not to exceed $9,000,000. The Notes will be issued by the City and will constitute a limited
obligation of the City payable solely from the revenues expressly pledged to the payment thereof, and
will not constitute a general or moral obligation of the City and will not be secured by the taxing power
of the City or any assets or property of the City except interests in the Project that may be granted to the
City in conjunction with this financing.
A draft copy of the application to the Minnesota Department of Employment and Economic
Development for approval of the Project is on file with the City and is available for public inspection in
the office of the City Administrator during regular business hours. Anyone desiring to be heard during
the public hearing will be afforded an opportunity to do so.
Dated: [date of publication]
AR200-9 (JAE)
359179v2
BY ORDER OF THE CITY COUNCIL
By /s/ Ron Moorse
City Administrator
City of Arden Hills, Minnesota
A-1
HILLS
PROCEDURE
APPLICATION TO
CITY OF ARDEN HILLS, MINNESOTA
PRIVATE ACTIVITY REVENUE BOND FINANCING
Approved by the Arden Hills City Council
Effective as of September 14, 2009
Finance Director
City of Arden Hills
1245 West Highway 96
Arden Hills, NM 55112
PROCEDURE FOR APPLICATION
TO THE CITY OF ARDEN HILLS FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
Table of Contents
PP
PartI General.......................................................................................................................... l
PartII Guidelines.....................................................................................................................2
Part III Miscellaneous Matters.................................................................................................. 5
Part IV Application for Tom -Exempt Financing
(Commercial, Industrial, Health Care or Other Non -Housing Projects) .....................7
Part V Application for Tom -Exempt Financing
(Multi -Family Housing)..............................................................................................10
Part VI Addendum to Application..........................................................................................13
Part VII Indemnification Letter of Agreement.........................................................................14
PART I
(TF,NFR A T ,
Under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152
to 469.1651 (the "Industrial Development Act"), the City of Arden Hills has authority to issue
revenue bonds or notes to attract or promote economically sound industry and commerce to the
City.
Under Minnesota Statutes, Chapter 462C (the "Housing Act") the City is authorized to issue
housing revenue bonds to finance multi -family residential housing projects for low and moderate
income persons and elderly persons. Projects must be embodied in a Housing Program as that term
is defined in the Housing Act.
The Council is aware that such financing for certain private activities may be of benefit to the City
and will consider requests for tax exempt financing subject to these Guidelines. The Council
considers tax exempt financing to be a privilege, not a right.
It is the judgment of the Council that tax exempt financing is to be used on a selective basis to
encourage certain development that offers a benefit to the City as a whole, including significant
employment and housing opportunities. It is the applicant's responsibility to demonstrate the benefit
to the City, both in writing and at the required public hearing. The applicant should understand that
although approval may have been granted by the City for the issuance of financing for a similar
project or a similar debt structure, that is not a basis upon which approval will be granted. Each
application will be judged on the merits of the project as it relates to the public purposes of the
Housing Act or the Industrial Development Act and the benefit to the City at the time the request for
financing is being considered.
In no event will the City issue private activity bonds for the primary purpose of financing operation
expenses of any borrower; provided that bond proceeds may fund reasonable operating and
replacement reserves where the primary use of proceeds is to finance capital expenditures.
1
C-rT TTT)F.T .TNF.q
1. The Council will consider tax exempt financing for commercial, industrial health care, and
any other projects authorized to be financed under the Industrial Development Act (referred
to as "non -housing projects"), and housing projects under the Housing Act. An applicant
for tax exempt financing for non -housing projects pursuant to the Industrial Development
Act must submit to the City the application contained in Part IV of these Guidelines. An
applicant for tax exempt financing for housing projects pursuant to the Housing Act must
submit to the City the application contained in Part V of these Guidelines.
2. Projects must be compatible with the overall development plans and objectives of the City
and comply with the zoning and land use regulations of the City.
3. An application will not be considered by the Council until tentative City Code findings and
requirements have been made with respect to zoning, building plans, platting, streets, and
utility services. The application must be accompanied by the addendum contained in Part
VI of these Guidelines and must provide information as to the proj ect's need for municipal
services including, but not limited to, street improvements, water and sewer services, and
police and fire protection.
4. The project must be a positive benefit to the City. The project must be of a nature that the
City wishes to attract, or an existing business which the City wishes to have expand within
the City, considering employment opportunities, incentive for further development, impact
on City services, and support for the industrial, commercial or health care or educational
facilities currently located in the City. A housing project must provide significant housing
opportunities for low and moderate income persons or the elderly.
5. The Council will, if requested, grant an applicant a pre -application review. The purpose of
the pre -application review is to inform applicants of the possibility of rejection or the
possible bases for such rejection. The fact that the project is not rejected at the pre -
application stage is not to be construed as approval of the project or as an indication that the
project will be approved upon formal request to the Council. Requests for tax exempt
financing may be rejected by the City whether or not the project was submitted to a pre -
application review and regardless of the outcome or recommendation of that pre -application
review.
A request for pre -application review must be in writing, addressed to the City Finance
Director, and set forth the name of the project, the type of project intended and the name,
address and telephone number of the person who will be representing the applicant at the
pre -application review, together with such additional information as the applicant desires to
submit.
6. The applicant must select a qualified financial adviser or underwriter to assist the applicant
in preparing all necessary application documents and materials. The financial adviser will
submit a letter that establishes the financial feasibility of the project. Applications may, in
the alternative, include a signed letter from a responsible financial institution indicating that
2
the project is economically feasible and viable and stating that bonds can be successfully
sold for the project or that an individual or institution intends to purchase all of the bonds.
The applicant must receive approval from the appropriate state agencies, secure financing
and commence construction within one year of the date of the resolution giving preliminary
approval to the project or the housing program. Upon application, the Council may approve
an extension of the preliminary approval.
The City will appoint bond counsel for the bond issue, which will normally be the City's
regularly retained bond counsel.
7. Pursuant to the Industrial Development Act and the Housing Act, consideration of an
application for tax exempt financing must be done at a public hearing held by the Council.
Modifications to the project after the public hearing and preliminary approval must be
consistent with the scope of the project as proposed at the time of preliminary approval.
8. The City is to be reimbursed and held harmless for and from any out-of-pocket expenses
related to the tax exempt financing including, but not limited to, legal fees, financial analyst
fees, bond counsel fees, the City staff s expenses in connection with the application, and any
deposits or application fees required under state law in order to secure allocation of bonding
authority. The applicant must execute a letter to the City undertaking to pay all such
expenses. A form of the required letter is set forth as Part VII of these Guidelines. A non-
refundable application fee in the amount of $500 must be included with the submission of
the application.
9. Prior to closing and delivery of the bonds for the project, the applicant must pay, or commit
to pay an annual administrative fee in the amount of 1/8 of 1 % (.125%) of the outstanding
principal balance of the bonds. The administrative fee may be paid in a lump sum at closing
on the bonds, or may be paid semiannually while the bonds are outstanding at the times
specified in the bond documents. The administrative fees required by this paragraph will be
adjusted at or paid prior to delivery of the bonds if necessary to ensure compliance with the
Internal Revenue Code and regulations.
If the City determines that issuance of the bonds requested by the applicant is reasonably
expected to cause governmental bonds issued by the City in that calendar year to be
ineligible for designation as "qualified tax exempt obligations" under Section 265(b)(3) of
the Internal Revenue Code of 1986, as amended (also known as "bank qualified"), the
applicant will be required to reimburse the City, at the time of issuance of the City's bonds,
for any interest rate differential between bank qualified and non -bank qualified bonds.
10. Applications for financing must be made on the forms attached to these Guidelines. In
addition, the applicant must furnish a description of the project, a plot plan, elevation of
proposed buildings, landscape, lighting, and site preparation, together with a brief
description of applicant and the proposed financing in such form as required at the time of
application.
1 1. The Council may, in its sole discretion, impose conditions exceeding those required under
the City building code in respect to exterior building materials, landscaping, signage
3
lighting, and such other aspects as the Council may consider appropriate on a case -by -case
basis.
12. The Council may, in its sole discretion, withdraw its preliminary approval of a project any
time if in its judgment the purposes of the Act will not be served by going forward with the
project and its financing.
V
PART III
MISCELLANEOUS MATTERS
1. Ratings. The City will give its most favorable consideration to proposed tax exempt bond
issues that have the same rating as the City's obligations by Moody's Investment Service or
Standard & Poor's Corporation. . Issues carrying lower ratings or non -rated issues may be
sold only to institutional or other investors on a private placement basis and must be in
denominations of at least $100,000. The Council may depart from this guideline when in its
judgment the project is of a level of merit and public purpose to justify the departure; and in
case of such a departure the Council must state its reasons therefor in the resolution
awarding the sale of the bonds.
2. Refundings. The Council will normally approve the refunding of atom -exempt issue but
only upon a showing by the applicant of (i) substantial debt service savings, (ii) the removal
of bond covenants significantly impairing the financial feasibility of the project, or (iii) both
(i) and (ii). In the case of refundings of bonds for which the administrative fee listed in
paragraph 9 of Part II have been paid in full, no new administrative fees are required; but the
non-refundable application fee must be paid together with all City expenses in excess of that
fee. If the administrative fees for the refunded bonds are not paid in full upon closing on the
refunding bonds, such fees must continue to be paid for the refunding bonds.
In the case of refundings of bonds where no administrative fee has been paid, the
administrative fees listed in paragraph 9 of Part II must be paid. The application form is to
be appropriately modified.
3. Subsequent Proceedings. Where changes to the underlying documents or credit facilities of
outstanding bond issues are to be made and require Council action (including changes that
are a "deemed reissuance" under Internal Revenue Service regulations), no administrative
fee is charged but a non-refundable fee of $500 must be deposited with the City to cover
administrative costs. No formal application form is required.
4. Issue by Another Political Subdivision. The City will consider requests for tax exempt
financing of projects in the City by other political subdivisions. In these cases the non-
refundable application fee must be paid and all procedures through the approval of the
preliminary resolution followed. No administrative fee is charged, except actual cost
incurred by the City must be reimbursed. The City reserves the right to reject such requests
for any reason, including without limitation a determination by the City that such issuance
by another political subdivision would impair the City's ability to issue governmental bonds
as "bank qualified bonds" (as defined in Part II, paragraph 9) in that calendar year.
5. City Contact. Initial contacts about tax-exempt financing are made by contacting:
Finance Director
City of Arden Hills
1245 West Highway 96
Arden Hills, MN 55112
5
6. Deadlines. The Council conducts all tax exempt financing matters at regularly scheduled
Council meetings held on the second and last Monday of each month. Documents for
Council consideration must be at the City office on the Monday preceding the Council
meeting at which the matter is to be considered. In the case of a publicly offered bond, issue
the documents, when submitted, may specify a maximum price and maximum effective
interest rate if prices and rates have not yet been established.
...................
..................
...................
..................
...................
Post -Issuance Compliance. The City will require that each borrower demonstrate to the City
that the borrower will comply with substantially the same procedures for post -issuance
compliance that apply to City governmental bonds under the City's Post Issuance Debt
Compliance Policy, approved September 14, 2009, as amended from time to time. The City
may require that borrowers retain a trustee and/or an independent arbitrage consultant for
the term of the bonds.
0
PART IV
APPLICATION FOR
TAX-EXEMPT FINANCING
(Commercial, Industrial, Health Care or Other Non -Housing Projects)
1. APPLICANT
a. Business Name:
b. Business Address:
C. Business Form (corporation, partnership, sole proprietorship, etc.):
d. Authorized Representative:
e. Principal contact person and telephone number:
2. PURPOSE OF REQUESTED FINANCING:
a. New Facility (describe):
b. Expansion (describe):
C. Refunding (attach explanatory letter)
3. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS,
ETC..
4. ESTIMATED PROJECT COSTS: (Not required for refunding)
Land $
Building
Equipment
Architectural, Engineering
Costs of Issuance
Capitalized Interest,
including discount
Other
Total Financing Requested $
5. AMOUNT OF FINANCING REQUESTED: $ of project costs)
7
6. TYPE OF FINANCING PROPOSED:
Bonds Tax Exempt Mortgage
Expected Term of Financing Years
Security:
Mortgage
Letter of Credit
Guaranty (third party)
Guaranty (personal)
Unsecured
Other (specify)
7. BUSINESS PROFILE: (Not required for refunding)
a. Is the business located in the City of Arden Hills now?
b. Number of employees in City:
1) Before this project:
2) After this project:
C. Approximate annual sales:
d. Length of time in business:
Length of time in business in City:
e. Do you have plants in other locations? If so, where?
8. NAMES OF:
a. Underwriter (name and contact person):
b. Corporate Counsel:
C. Underwriter's Counsel:
9. WHAT IS YOUR TARGET DATE FOR:
a. Construction start:
b. Construction completion:
10. Attachments:
a. Proj ect description:
b. Draft application to Department of Trade and Economic Development — together
with necessary attachments
C. Initial application fee
d. Indemnification Letter of Agreement
I certify that the information provided above contains no misrepresentations, omissions or
concealments of material facts and that the information given is true and complete to the best of my
knowledge. I have been furnished a copy of the Procedure for Application to the City of Arden
Hills for Private Activity Revenue Bond Financing and is aware of its content and agree to be bound
by its terms and the terms of the indemnification letter.
Signature
Title
Date
A
PART V
APPLICATION FOR TAX-EXEMPT FINANCING
APPLICANT:
CONTACT PERSON:
TITLE:
ADDRESS:
TELEPHONE C__)
PROJECT NAME:
PROJECT LOCATION:
PROJECT INFORMATION
Efficiency
One Bedroom
Two Bedroom
Three Bedroom
Parking (included in rend
not included in rent)
Laundry
(Multi -Family Housing)
DATE OF APPLICATION:
Tl TA T►T
E!
UNITS
10
Utilities included in monthly rent:
OPERATING EXPENSES
of Gross (Annual)
TOTAL PROJECT COST: $ DEVELOPER EQUITY: $
DEBT SERVICE: $ *HARD COSTS: $
LAND VALUE: $ SOFT COSTS: $
*(Hard Costs are all project costs the IRS has determined to be eligible items for depreciation.)
ANTICIPATED INTEREST RATES: AMORTIZATION SCHEDULE:
-Year Amortization Schedule
If the project were convention-
ally financed, what interest
rate would you expect to pay?
SALES ASSUMPTION: DEPRECIATION METHOD:
How many years do you plan to Years:
hold the property before you
sell? Type:
years. At what percent do you
feel the value of the project Amount of Total Basis: $
will appreciate?
EQUIPMENT:
$ of project cost is for equipment (e.g., washers/dryers)
ANTICIPATED INCREASES: ANTICIPATED VACANCY RATE:
Revenue: % per year First Year: %
Expenses: % per year After First Year: %
CONSTRUCTION SCHEDULE
Anticipated construction commencement date:
11
Anticipated construction completion date:
ADDITIONAL INFORMATION:
I certify that the information provided above contains no misrepresentations, omissions or
concealments of material facts and that the information given is true and complete to the best of my
knowledge. I have been furnished a copy of the Procedure for Application to the City of Arden
Hills for Private Activity Revenue Bond Financing and is aware of its content and agree to be bound
by its terms and the terms of the indemnification letter.
Signature
Title
Date
12
PART VI
ADDENDUM TO APPLICATIONS
The following items must be attached to each application:
A PPF.N Y A
A brief description of the organizational structure of Applicant, including parent subsidiary and
affiliate organizations (if applicant is other than an individual).
Fill .. i!ll
Statement of Applicant's business history, including any multi -family rental projects.
A PPFI�MTX C''
The name, address, and telephone number of:
1. The Applicant's legal counsel
2. The Applicant's accountant
3. The architect of the proposed Project
4. The engineer of the proposed Project
5. The general contractor of the proposed Project
A... 1-11MME
l . Present ownership of the proposed Project site and Applicant's interest therein.
2. Present zoning of the Project site and a description of what city land use approvals are needed
for this project.
3. The projected number of new employees to be added to the Applicant's permanent work force
because of the Project (for Commercial, Industrial or Health Care only).
4. Other financing attempted or available to the Project including any interim financing.
5. Statement regarding whether or not this project has all required city approvals. If the project
does not have all of the required approvals, list the approvals still needed and a tentative time
schedule.
A PPFNDTX F.
Indemnification Letter of Agreement.
A PPFNTITX F
Proforma Analysis of the Project
13
PART VII
INDEMNIFICATION LETTER OF AGREEMENT
The Mayor of the City of Arden Hills
and Members of the City Council
City of Arden Hills
1245 Highway 96
Arden Hills, MN 5 5112
RE: Application of
Arden Hills
for Tax Exempt Revenue Bond Financing by the City of
Dear Mayor and Members of the City Council:
This letter of agreement is given by , a under the
laws of Minnesota ("Applicant") as required by the City of Arden Hills, Minnesota in connection
with its consideration of an application for tax exempt revenue bond financing for the project
described in the application.
Applicant agrees as follows:
1. Applicant agrees to pay or reimburse the City for any and all costs and expenses which the
City may incur in connection with its consideration of the project and the granting of tax
exempt revenue bond financing therefor, whether or not the project is preliminarily approved
by the City, whether or not the project is approved by the State of Minnesota, whether or not
revenue bond financing is finally approved by the City, whether or not the bonds are issued
and sold, and whether or not the project is carried to completion.
2. Applicant agrees to indemnify and hold the City, its officers, employees and agents harmless
against any and all losses, claims, damages, expenses or liabilities, including attorneys fees
incurred in their defense, to which the City, its officers, employees and agents may become
subject in connection with the City's consideration, issuance or sale of the bonds for
Applicant's project and the carrying out of the transactions contemplated by this agreement
and any resolutions adopted, or agreements executed by the City in connection with the
issuance of its bonds for this project.
3. Applicant hereby releases the City, its officers, agents and employees from any claims, causes
of action, losses, damages, or liabilities which it may have against the City, its officers,
agents, and employees or which it may incur in connection with: the City's consideration of
the application for industrial development revenue bond financing for Applicant's project; the
failure of the City, in its discretion, to issue tax-exempt revenue bonds for Applicant's project;
the issuance and sale of the bonds; the construction of the project; or any other matter or thing
of any type or nature whatsoever which may arise in connection with the foregoing.
14
4. Applicant is aware of the City's application and administrative fee structure for tax exempt
financing and agrees and covenants that all such fees will be paid in the amount and at the
times required.
Dated:
(Applicant)
RZA
Its
15