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9 Item Description: Consider Setting a Public Hearing to Issue Tax-Exempt Revenuc Bonds on <br />10 Behalf of Concordia Academy. <br />ll....... ................. <br />12 <br />13 BackLyround <br />14 Under Federal and State Statutes, municipalities are authorized to pledge their bond issuance <br />15 authority to non-profit groups for the benefit of facilities. If a municipality e -"Nects <br />%_1 XP <br />16 to issue or receive tax-excmPt bond proceeds, either directly or indirectly through separate <br />17 e stab lishments , it 'is required by federal law to hold a public hearing. <br />18 <br />19 Concordia Academy,, located at '41,400 Nord.1L Dale. Street. i11L Roseville, has requested that the <br />20 City of Roseville assist in the issuance of tax-exempt revenue bonds to -Finance iiiiprovements <br />21 at both their Roseville and Bloomington facilities. The debt is considered conduit debt, and <br />22 does not constitute a legal or moral obligation on the part of the City. However, the City must <br />23 still meet all legal requirements prior to issuing any tax-exempt bonds, including holding a <br />24 public hearing. <br />25 <br />26 The total annount of 'financing is approximately $7 million. The City has participated in <br />27 financing arrangements for similar entities most recently in 2007. The City's Bond Counsel <br />28 of Briggs & Morgan, has reviewed the legal and financing agreements., and will provide an <br />29 unqualified opinion as the legality of the bonds and their tax-exempt status. There is no fiscal <br />30 impact on the part of the City. All costs of debt issuance will be laid by the alp li c alit, <br />3) 2 Attachment <br />3 3 Enclosed is a resolution setting the public hearing, as prepared by Bond Counsel. <br />34 <br />35 Staff Recommendation <br />36 Staff has reviewed the application and believes all necessary legal and financing provisions <br />37 will be niet. Staff recommends the Council set a public hearing to consider the issuance of <br />38 tax-exempt bonds for Concordia Academy. <br />39 <br />40 Council Action Requested <br />41 Motion to establish a public hearing for March 3, 2008 for the purposes of issuing <br />42 approximately $7 million in tax-exempt revenue bonds,, for Concordia Academy. <br />43 <br />2132085vt <br />