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MINUTES OF THE WORKSHOP MEETING <br />CITY COUNCIL <br />LITTLE CANADA, MINNESOTA <br />February 7, 1987 <br />Pursuant to due call and notice thereof a workshop meeting of the <br />Council of the City of Little Canada, Minnesota was held on the <br />7th d.ay of February, 1987 in the Council Chambers of the City <br />Center located at 515 Little Canada Road in said City. <br />Mayor Michael Fahey chaired the meeting and called it to order at <br />9:00 A.M. and the following members of the Council were present <br />at roll call: <br />MEMBERS PRESENT <br />ALSO PRESENT <br />Mayor <br />Councilman <br />Councilman <br />Councilman <br />Counci lt~~~^~an <br />City Clerk <br />City Auditor <br />Recording Secretary <br />Mr. Michael Fahey <br />Mr. William Blesener <br />Mr. Rick Collova <br />Mr. Jim LaValle <br />Mrs. Beverly Scalze <br />Mr. Joseph Chlebeck <br />Mr. Robert Voto <br />Mrs. Kathleen Glanzer <br />Refinancing Mr. Brad Farnham, representing Juran & Moody, reported that his <br />Of City firm is reviewing City bond issues and will report to the Council <br />Bonds in the near future their recommendation for the refinancing of <br />City bonds with high interest rates. <br />Guarantee Mr. Brad Farnham and Steve Mattson, of Juran & Moody, presented the <br />Investment Council with a proposal for a guaranteed investment program whereby <br />the City would join with several other cities and issue a large <br />bond issue, which would be used as a replacement for industrial <br />revenue financing. This bond would be a taxable bond and there <br />would be no risk to the City. <br />The City Auditor explained that the cities involved would form a <br />consortium and could use this pool of money to assist developers <br />that would meet the requirements set forth by the cities. Money <br />could be borrowed at variable interests rates between 9 1/2 to 10 1/2 <br />percent and the loan term could be from 10 to 15 years. <br />Mattson explained that this proposal has come about due to changes <br />in Federal law regarding industrial revenue bonds, and gives the <br />City a way to help developers. <br />Mattson presented a chart explaining the process involved. The <br />first step involved identifying client issuers. Step II would be <br />to issue a revenue bond issue in the amount of $300,000,000, for <br />an example, at an interest rate of 8%. The next step would be to <br />lend approximately $295,000,000 of the funds to a large investor <br />at a rate of 8 1/2%. ~5,000,000 would go to pay off attorney, <br />banking and brokerage fees. <br />Page -1- <br />