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REQUEST FOR COUNCIL ACTION Date: 7/12/2004 Item No: 3.d Department ApprovaL Manager Approved: Agenda Section: �� '� �� Cnr�s�nt Item Description: Consideration of Issuing Tax-Exempt Refunding Bonds for Oakcrest Properties Background State Statute provides for the issuance of tax-exempt bonds by municipalities on behalf of a non-profit corporation for the purposes of preventing economic deterioration. The bonds are considered conduit debt, and do not constitute a financial obli�ation in anv part bv the Citv. In 1994, the City assisted Oakcrest Properties in obtaining financing for the Oakcrest Office Plaza Project; a multiple tenant office building located at 1970 Oakcrest Avenue in Roseville. Oakcrest Properties intends to refinance the existing bond issue which will require City approval. Discussion Items The City Council is required to approve any issuance of tax-exempt financing by the City. The City's Bond Counsel of Briggs & Morgan, has reviewed the legal and financing agreements, and has approved the legality of the bonds and their tax-exempt status. There is no fiscal impact on the part of the City. All costs of debt issuance will be paid by the applicant. In addition, the City does not intend to issue any direct debt in 2004. As a result, this issuance will not j eopardize the "bank-qualification"Status of any new City debt issues. Because this issuance involves a refinancing and not an original issue, no public hearing is required. Attachment Enclosed is a Resolution authorizing the issuance of tax-exempt refunding bonds for Oakcrest Properties. Staff Recommendation Staff has reviewed the application and believes all necessary legal and financing provisions will be met. Staff recommends the Council approve the issuance of tax-exempt bonds for Oakcrest Properties. Council Action Requested Motion to adopt the attached resolution approving the issuance of tax-exempt bonds for Oakcrest Properties.