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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Fischer and Members of the City Council <br /> <br />FROM: Chris Heineman, City Administrator <br /> Sam Magureanu, Finance Director <br /> <br />DATE: March 27, 2024 <br /> <br />RE: Resolution Calling for Public Hearing for Issuance of a Conduit Revenue Note by <br />the City of Little Canada for St. Paul Academy and Summit School. <br /> <br /> <br />ACTION TO BE CONSIDERED <br />The City Council is asked to Adopt a Resolution calling for a Public Hearing on April 24, 2024, <br />to consider the Issuance of a Capital Campaign Financing Note by the City of Little Canada for <br />Saint Paul Academy and Summit School & authorizing publication of a notice of Public Hearing. <br /> <br />BACKGROUND <br />City staff has received a request from Saint Paul Academy and Summit School (the “Borrower”), <br />to finance improvements to its lower school campus located in the City of Saint Paul. The City of <br />Little Canada has previously acted as a conduit issuer for St. Paul Academy and Summit School, <br />and this request follows our recently updated policy regarding the issuance of conduit debt. <br /> <br />State and federal laws allow local government units to enter into arrangements to issue Notes and <br />loan the proceeds to nonprofit corporations to finance or refinance capital expenditures. This <br />assistance reduces borrowing costs for nonprofit corporations and enables them to provide their <br />services more cost-effectively. Each city may issue up to $10,000,000 of its own and 501(c)(3) <br />bonds each calendar year as bank-qualified bonds. <br /> <br />The City of Saint Paul, the Saint Paul HRA, or the Saint Paul Port Authority do not have sufficient <br />bank qualification capacity on their own to accommodate the Note of approximately $10,000,000 <br />so the City of Little Canada was asked to serve as an alternative issuer for the Note. Under the <br />federal tax law, alternative issuers are permitted, but a “nexus” between the jurisdictional city and <br />the issuer is preferred. In this case, the Issuer is geographically proximate to the City of Saint Paul <br />and Little Canada currently has residents who are students attending the Borrower. <br /> <br />The action before you tonight is to adopt a Resolution calling for that public hearing on April 24, <br />2024. The Issuer has agreed to and will receive a one-time issuer administration fee equal to one- <br />half of 1% of the principal amount that the Issuer issues. <br /> <br />RECOMMENDED ACTION <br />Staff recommends adoption of the Resolution calling for the Public Hearing on April 24, 2024, <br />and authorizing publication of a Notice of the Public Hearing.