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MINUTES <br />CITY COUNCIL <br />NOVEMBER 10, 1998 <br />LaValle asked if the school was current on its payments. The <br />Administrator replied that they are not. <br />Scalze pointed out that the City has not forgiven anyone else's <br />assessments and questioned why the City would forgive a charge for a <br />property that is not even located in Little Canada. <br />The Administrator went on to explain that in constructin~; the school, this <br />connection charge was not figured into project costs. This charge is <br />creating a problem for the school from a budgetary standpoint. The <br />Administrator suggested that given current interest rates, 6.5% or 7% over <br />30 years would not be a bad investment. <br />LaValle suggested that interest rates could change, and a floating interest <br />rate was su~gested. <br />The Administrator also pointed out that the City has financed <br />improvement projects with 30-year bonds. Therefore, a 30-year term £or <br />this connection charge would equate. <br />Morelan felt the present arrangement was an equitable one, and he was not <br />sure he was comfortable in making any changes. Morelan suggested that <br />the schoo( could ~o back to the school districts for the necessary funding. <br />Morelan stated, however, that he would not be opposed to extending the <br />term to 30 years at the appropriate interest rate. That action would help <br />with the school's cash flow. However, Morelan was opposed to forgiving <br />part of the connection charge. <br />The City Administrator suggested that a 30-year term with the interest rate <br />tied to a specified level over some index would work. <br />Morelan stated that he would not oppose this solution. However, <br />suggested that the school may have other solutions at their disposal. <br />Morelan asked how the City's cash flow would be affected. <br />The Administrator reponed that these monies are earmarked for the <br />Infrastructure Replacement Fund, therefore, do not affect the cash flow of <br />the budget. The Administrator suggested that he discuss the concept of a <br />30-year term with a floating interest rate with the principal of the school <br />and report back to the Council on this issue. <br />RICE STREET/ The City Administrator reported that Chris Moarn is considering the <br />LITTLE development of a 44,000 square foot office buildin~ on the property <br />CANADA RD. north of Little Canada Road along Rice Street. The Administrator <br />6 <br />