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JURAN & MOODY, INC. <br />MUNICIPAL BONDS EXCLUSIVELY <br />114 EAST SEVENTH STREET <br />SAINT PAUL, MINNESOTA 55101 <br />TELEPHONE 612/298-1SOC <br />December 9, 1976 <br />Mr. Joseph Chlebeck, City Clerk <br />City Fall <br />515 Little Canada Road <br />Little Canada, Minnesota <br />P.O. St. Paul, Minnesota 55117 <br />RE: LITTLE CANADA, MINNESOTA - APPROXIAt4TELY $385,000 CO'�i- ERCIAL <br />DEVELOPMENT REVENUE FINANCING (SCHROEDER. - CUB MARKET PROJECT) <br />Dear Joe: <br />Thank you very much for visiting with me by telephone yesterday <br />in connection with the above captioned matter. P,irsuant to your <br />request I am putting in writing some of the points we discussed and <br />sending copies of this letter to interested parties. <br />Commercial Development Revenue .financing is basically Just <br />like Industrial Development Revenue bonds except, in our opinion, <br />much more streamlined, simpler and easier in that there are not <br />$1, 000 or $5, 000 bond units to be marketed to the general public <br />after a securities registration. Censlercial Development Revenue <br />financing is generally placed with one, or limited number of, institu- <br />tional investors. In this instance a co.i.,N itment has been secured <br />and many municipalities we have dealt with have felt this makes a <br />great deal of difference to them in that many bonds, with their name <br />or. them, will not be "floating" around t.i:e m3r),etplace. <br />The transaction is begun by the 111111n: ipality acopting a <br />rather simple preliminary or initial resolution which merely identifies <br />the project and authorizes the various parties to take the :iexL <br />step. This is tile <br />submission of an applicatit?:; to t"��F:ir`'?�cnt <br />of Economic Development and once their is -Secured the necessary <br />documents are, prepared by the bond approving attorneys ar.c surrii tt ed <br />to your attorney and the Council. Tile only other riect ing involying <br />the Council is a final meeting near the time of "closing" to adopt <br />the final resolution setting forth the terms and details of the issue. <br />By law there can be absolutely no expense on the ilhrt cf the <br />City, nor is the full faith and credit or taxing powor of the ti_11~_Y <br />pledged. No taxes whatsoever can be levied and tii�� debt is d�s'in rely <br />not an obligation of the City in connection with fu i.:re 11Junicip.l <br />financing. <br />. 8 <br />C ie rK es e xh i b .� t no , b4 <br />meeting Jan-12_ 97 <br />