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Department Approval <br />MEQUEST FOR, COUNCIL ACTION <br />Date: 7/28/08 <br />Item No.: I La <br />City Manager Approval <br />Item Description: Public Hearing to Acknowledge the Expenditure of Tax-exempt Funds for <br />Northwestern College. <br />1� BACKGROUND <br />2 Under Federal and State Statutes, municipalities are authorized to pledge their bond issuance authority to <br />1 3 non-profit groups for the benefit of higher educational facilities. If a municipality expects to issue or <br />41 receive tax-exempt bond proceeds, either directly or indirectly through separate establishments, it is <br />5 required by federal law to hold a public hearing. <br />6 <br />7 The Colorado Educational and Cultural Facilities Authority intend to proceed with the issuance of tax- <br />8 exempt bonds for the benefit of Northwestern College located in Roseville. The proceeds of the bonds will <br />not exceed $9,000,000 and will be used to finance or reimburse the College for the costs of, certain higher <br />1 education facilities and related costs, including but not limited to: <br />1� 2 Acquisition, renovation and equipping of an office building located at 2803 Lincoln Drive in <br />Roseville (the 'Edina Realty' building) <br />Planning and capital construction costs of campus roadways and a parking facility on the <br />1� 5 Institution's main campus located at 3003 Snelling Avenue North in Roseville <br />1� 6 Capital campus landscaping costs on the Main Campus <br />1� 7 Fund capitalized interest on the Bonds, if any <br />Fund any required debt service reserve fund, and <br />Pay certain costs of issuance of the Bonds, including initial costs of any credit enhancement. <br />2 <br />2,,i� The Bonds will not constitute a charge, lien or encumbrance upon any property of the City. Such Bonds <br />22 will not be a charge against the general credit or taxing powers of the City, but are payable from sums to be <br />23 paid by the Institution pursuant to a separate revenue agreement. <br />241 <br />25 The purpose of the public hearing is to allow for public comment on the proceeds to be expended. No <br />26 special action is required by Council at the hearing. The process entails opening a public hearing, allowing <br />27 for public comment (if any) , and closing the public hearing. <br />Page I of 5 <br />