01-11-2017 ADDITIONS Packet - Laserfiche WebLink

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From:Joel Hanson To:Christian Torkelson; John Keis; Michael McGraw; Mike McGraw (mcpuck93@aol.com); Rick Montour; Tom Fischer Cc:Heidi Heller Subject:FW: Conduit Bond Issuer Date:Tuesday, January 10, 2017 3:31:42 PM Here is an opportunity to issue some conduit debt and generate an $18,000 fee. This does not create any debt obligation for the City and we have done this a few times in the past. They need each issuer to stay under $10 million to have the bonds be “bank qualified”. Briggs and Morgan is the bond attorney. I think it is worth pursuing as I don’t see the need to issue any debt this year (unless a refunding opportunity presents itself and even then I don’t see us issuing more than $2,625,000! Please let me know if you want to pursue this or not. We can talk about it tomorrow night. From: Courtney, Catherine [mailto:CCourtney@Briggs.com] Sent: Tuesday, January 10, 2017 3:08 PM To: Joel Hanson Subject: Conduit Bond Issuer Joel, It was a pleasure speaking with you just now about the possibility of the City of Little Canada acting as an issuer for 501(c)(3) bank qualified bonds in 2017 for St. Paul Academy. The request would be to use approximately $7,350,000 of the City’s $10,000,000 bank qualification capacity. The total project is just shy of $25,000,000, so we are seeking 3 issuers in order to do the entire project as bank qualified. There are two pieces – approximately $15,000,000 for a refunding of existing bonds and $10,000,000 of capital campaign bridge financing for new construction. The entire amount will be purchased by a Bank. The City currently has residents who attend St. Paul Academy as students. I am suggesting that Little Canada would act as one of the 2 issuers for the refunding piece. The capital campaign bridge financing would be done by the third issuer. Briggs and Morgan would act as bond counsel on all 3 bonds. I understand that Little Canada does not currently have plans or requests for bank qualified bond and, if it does issue its own bonds, it would be less than $2.5 million. The closing will not be until late June or early July, but, given the size of the requested bank qualification, we want to be sure that we have issuers lined up, as well as having time to have the public hearings that we’ll need, etc. I looked at the Maranatha deal that we did for Pres. Homes in 2014 and the City’s fee was 1/8 of 1%. The fee charged by the City that will likely act as issuer on the capital campaign piece on the last 2