CC_Minutes_2002_1021 - Laserfiche WebLink

Home

Regular City Council Minutes - 10/21/02 Page 13 mitigated her concerns. Ms. Grain responded that, while that did provide more of a comfort level, their firm was maintaining their position in the interest of full protection for the City in any potential lawsuits. Councilmember Klausing asked Ms. Grain about bond holders' rights in purchasing tax exempt bonds; the status of which could be revised following any potential litigation, and whether those bond holders could potentially seek redress or claim damages from the City of Roseville. Ms. Grain stated that, while the City could be named in any potential lawsuit, Northwestern College had made provisions in the bond documents, and through a Letter of Credit issued by Wells Fargo Bank that, should the validity of the bonds be questioned, they would at that time be paid in full, and any lawsuit would become a mute point due to a seven (7) day call provision, which was applicable at any time. Finance Director Miller introduced Mr. Jeffrey Lewis of the firm Ice Miller of Indianapolis, IN. Mr. Lewis stated that he didn't disagree with Ms. Grain's observations and opinions. Mr. Lewis provided a brief history of the Ice Miller firm and attorney experience with this type of bond issue, and their experience with legal interpretation of like bond issues. Mr. Lewis further reviewed some dramatic changes being experienced in First Amendment rights cases over the last five (5) years in a relatively untested area. Mr. Lewis stated that his firm's rationale in determining the pervasively sectarian status of this bond issue was whether it was indirect or direct aid to a facility; the covenants provided by the College regarding the stipulated use of the funds; and the Letter of Credit to further protect bond holders and the City of Roseville.