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REQUEST FOR COUNCIL ACTION Date: 9/23/2002 Item No: vlII. E. Department ApprovaL Manager Approved: Agenda Section: �k!%� Reports & Recommendations Item Description: Further Consideration of Issuing Tax-Exempt Bonds for Northwestern College Background State Statute provides for the issuance of tax-exempt bonds by municipalities for the benefit of educational institutions that are deemed to be in the best interest of the City, and results in no negative fiscal impact. The bonds are considered conduit debt, and do not constitute a financial obligation in any part by the City. However, the City must still meet all legal requirements prior to issuing any tax-exempt bonds, including holding a public hearing. Northwestern College has requested that the City provide tax-exempt financing for the purposes of funding student housing and a classroom portion of a new media center on the Northwestern College Campus located in Roseville and Arden Hills. The total amount of financing is appro�mately $1 0,000,000. Discussion Items At the September 3, 2002 Council Meeting, the City Council took action to establish a public hearing for September 23, 2002 for the purposes of considering the issuance of tax-exempt bonds for Northwestern College. However, this action did not allow for the lawful notification for the public hearing, which requires the notice to be published a minimum of 14 calendar days before the hearing. Given the publication schedule of the City's official newspaper, only 13 calendar days would have elapsed instead of the required 14. To comply with a11 legal requirements of issuing tax-exempt bonds, a new public hearing date must be set. Given that this item is somewhat procedural in nature, and that an additional opportunity e�sts to continue discussions at the public hearing, neither the City's Bond Counsel nor Northwestern College Officials have been invited to attend the meeting. Staff anticipates that both parties will be in attendance at the hearing and will wish to speak on their respective behalves. Staff Recommendation Staff recommends that the Council establish a new public hearing date for October 2 1, 2002, to allow for the proper publication notice for the public hearing. Council Action Requested Motion to establish a public hearing for October 21, 2002, for the purposes of issuing up to $10,000,000 in tax-exempt revenue bonds, for Northwestern College.