07-27-94 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 13, 1994 Scalze pointed out that the recommendation for a 1 percent fee on initial issuance and a 1/4 percent fee for refundings does not appear to be out-of-line when these fees are then used by cities for economic development purposes. Morelan felt the question was whether or not the 1 percent would make a project unworkable. The Administrator pointed out that most cities negotiate the fee. Oakdale, for example, recently negotiated 1/8 percent at closing and 1/8 percent annually. The Administrator also pointed out that with the restrictions on tax exempt financing, the City will not receive many requests for this type of financing. Pedersen asked if the refunding proposed by Dominium Group would be subject to these fees. The Administrator pointed out that approval of the Dominium refunding was subject to the fee schedule. Morelan felt that the City needed to recoup its costs associated with initial issuance and refundings. However, questions whether or not it was proper to charge a fee over and above that. Morelan felt it was to the benefit of the City to get older buildings renovated, and he was not sure the City needed a monetary profit. Scalze pointed out that the fee would be used to the benefit of the entire City for economic development purposes. Morelan suggested that rather than imposing a fee, the City could require a minimum amount of improvements to a site. Upgrade of fire protection systems was a good example. The Administrator felt that most cities negotiated on the fee. LaValle pointed out that surrounding cities are imposing this fee. Pedersen questioned the need for the fee for refundings. 26