2002-04-24 CC Packet - Laserfiche WebLink

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.; ? CllY eF CIRCLE ~INES 200 CMc Helghi3 Clrele reJephoM: (763) 7S4-SS93 Circle Pine:. MN 55014 FAX: (763) 7315-23159 lWM'.cI.circle-plnss.mn.us roD: (763) 734-9724 Memo - To: From: Date: Re: Phil Korst fJ ~ ~ Jim Keinath 1/- - ~ April 1 0, 200 Proposed Centennial lakes Police Station... As you have requested, I have tried to outline below the parameters and questions that would need to be resolved as part of the consideration for a Centennial Lakes Police Station. In order to analyze the issue. it is necessary to make some assumptions. The primary assumption is that the building would beapproximately-15,000 square feet and would be on a site approximately an acre and one-half in size. Between the building costs, furnishing costs and the site development cost, parking lots, landscaping, etc., we would envision that there would be a total cost of approximateiy $3,000,000 for site development . . In the current interest rate environment, it is aiiti-dpated that the yearly.debt ser:vice would be about $300,000 per year. That amount presumes that a city would use their housing and redevelopment authority to issue lease revenue bonds such as we used to construct our public works facility and our fire station. From the brief research that we did it appears that it would be unworkable for all three cities to jointly bond for the building. The Centennial Police Commission, asia joint powers organization, does not have the authority to issue bonds. So, it would appear'that a city would have to issue the bonds, probably the city that the building was constructed in. The city would need to show that it has a sub- lease arrangement that would bind the police department and its member cities to make ,lease payme'nts to offset bond payments, for tlie bonds to be saleable. Primed on Recycled poper