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Northwestern College has sought the opinion of separate bond counsel to provide a legal opinion on the <br /> issuance of tax-exempt bonds by the City. Northwestern College will receive an opinion from the law firm <br /> of Ice Miller, of Indianapolis, IN, which will provide the opinion that this type of financial arrangement is <br /> legal and valid. <br /> Discussion Items <br /> The City Council is required to approve any issuance of tax-exempt financing by the City. If the City <br /> Council authorizes this particular issuance, it will be necessary to use a law firm other than the City's Bond <br /> Counsel. <br /> Although the City will not bear any financial obligation with respect to the bonds, the Council should be <br /> aware of the potential legal challenge that may be brought forth should the City agree to participate with <br /> Northwestern College. It may be advisable for the City to require additional covenants from Northwestern <br /> College that would provide assurances that they would refinance the City-issued debt should any legal <br /> challenge be presented. Additional covenants should also be obtained with respect to the uses of the funds, <br /> to ensure that the bond proceeds are used for non-religious purposes. In initial discussions with <br /> Northwestern College Officials, they have indicated a willingness to provide these covenants. <br /> Council Action Requested <br /> Staff is requesting direction from the Council on whether to proceed with the issuance of tax-exempt <br /> financing for Northwestern College. <br />