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Department Approval l REQUEST FOR COUNCIL ACTION Date.- 6/30/08 Item No..- 7.i City Manager Approval Item Description.- Adopt a Resolution to Reschedule a Public Hearing to Acknowledge the Expenditure of Tax-exempt Funds for Northwestern College. 1 BACKGROUND 2 At the June 9,, 2008 City Council meeting, the Council scheduled a public hearing for June 30, 2008 for the %1.11 3 purposes of acknowledging the expenditure of tax-exempt funds by Northwestern College. The Council is 4 asked to reschedule the hearing for July 28, 2008. 6 Under Federal and State Statutes,, municipalities are authorized to pledge their bond issuance authority to "7 non-profit groups for the benefit of higher educational facilities. If a municipality expects to issue or ,i receive tax-exempt bond proceeds, either directly or indirectly through separate establishments, it is 9 required by federal law to hold a public hearing. The Colorado Educational and Cultural Facilities Authority intend to proceed with the issuance of tax- '12 exempt bonds for the benefit of Northwestern College located in Roseville. The proceeds of the bonds will 13 not exceed $,9,,000,,000 and will be used to finance or reimburse the College for the costs of, certain higher 14 education facilities and related costs,, including but not limited to.- 16 ❖ Acquisition, renovation and equipping of an office building located at 2803 Lincoln Drive in 1 7 Roseville (the 'Edina Realty' building) 1 ❖ Planning and capital construction costs of campus roadways and a parking facility on the 19 Institution's main campus located at 3003 Snelling Avenue North in Roseville 20 ❖ Capital campus landscaping costs on the Main Campus 2 1 Fund capitalized interest on the Bonds, if any 22 ❖ Fund any required debt service reserve fund, and 23 ❖ Pay certain costs of issuance of the Bonds, including initial costs of any credit enhancement. 24 25 The Bonds will not constitute a charge, lien or encumbrance upon any property of the City. Such Bonds 26 will not be a charge against the general credit or taxing powers of the City, but are payable from sums to be 27 paid by the Institution pursuant to a separate revenue agreement. 28 29 The purpose of the public hearing is to allow for public comment on the proceeds to be expended. No -r,l 3 special action is required by Council at the hearing. The I ne process entails opening a public hearing, allowing 3 1 for public comment if any),, and closing the public hearing. Page I of 6