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Mr. Edward Burrell July 7, 1998 Page Children's is requesting that the City of Roseville approve the issuance of bonds by the City of Minneapolis to finance acquisition and installation by Children's of the equipment in its new technology center in Roseville. State and federal law requires that the Roseville City Council approve the issuance of the bonds to finance the Roseville portion of the project following a public hearing. If the Roseville City Council approves the issuance of bonds, the Cities of Minneapolis and Roseville will enter into an agreement whereby Minneapolis agrees to issue the bonds to finance the Roseville portion of the project. The total proposed bond issue wil i be approximately 1,000,000, with approximately $6,000,000 to $8,000,000 of such bonds to be used to finance the Roseville portion of the project. The bonds will be issued in the name of Minneapolis. Upon the issuance of the bonds, Children's will pay the City of Roseville a fee pursuant to the City's guidelines based upon the principal arnount of the bonds to be used to'fierce the Roseville'ortion of the project. In addition, Children's will indemnify the City of Roseville against any claims or liability related to the bonds. Since the bonds will be issued by the City of Minneapolis, they will not be taken into account in determining the$10,000,000 annual bank qualification limitation for the City of Roseville under Section 265(b)of the Internal Revenue Code. Children's requests that the Rosevi i1e City Council consider a resolution at its meeting on July 13'calling for a public hearing on the proposed bend issue, with the public hearing to be held on August 10'. Notice of the public hearing is required to be published ncit less than 14 days prior to the date of the hearing. Following the public hearing the City Council will be asked to consider a resolution approving the issuance of the bonds by the City of` Minneapolis and authorizing the execution of the agreement between the Cities of Minneapolis and Roseville. Enclosed is a farm of resolution calling for the public hearing for consideration by the City Council at its July 13'meeting. The notice of public hearing attached to the resolution provides that the portion of the bands to finance the Roseville Pro j ect will not exceed 10,500,000. As previously mentioned, it is expected that the actual amount of bonds issued for the Roseville project will be lower, but the $10,500,000 amount is used in order to p rovide some c0shion should the actual amount be higher than presently estimated.. Representatives from Children's will.attend the August I,off,public hearing to farther explain the proposed ro'ect and l� ,l respond to any questions, and are available to attend the July 13'1 City Council meeting if you