02-08-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL FEBRUARY 8, 2012 Keis indicated that he was voting against as he would like the "Go Green" added as an official 2012 Goal. McGraw suggested that when the final goal report is ready, that the goals be reviewed and each Council Member take responsibility for shepherding individual goals for completion. The City Administrator pointed out that many goals are long -term in nature and cannot be completed in a single year. He suggested that once action plans are completed and approved for each of the goals, a copy can be kept in the Council's agenda books. Blesener noted that at the Goal Setting Session, past goal listings were reviewed and the majority of goals have been completed. CONDUIT The City Administrator reported that the Council may recall that the City FINANCING assisted Presbyterian Homes with conduit financing last year for a PROGRAM development project in the City of Arden Hills. He noted that Little CONCEPT- Canada is authorized to issue $10 million in bank - qualified debt each year, SOUTH and it allowed Presbyterian Homes to utilize $10 million in conduit METRO financing in 2011 and $2 million in 2012. In return the City charged HUMAN a $68,000 issuance fee. SERVICES The Administrator reported that Little Canada has been approached by South Metro Home Services (SMHS) that is looking to purchase the former Ethan Allan building in Maplewood and renovate for their offices and a care facility. Additionally, they are seeking to refinance 17 groups homes, one of which is located in Little Canada. SMHS is asking for $4.7 million in conduit financing. The Administrator reported that he has discussed the issuance fee with Mary Ippel of Briggs & Morgan who has indicated that the City's policy of charging 1% for new financing and '/% for refinancing is not the market rate anymore. Ippel suggested that charging 50 basis points was more appropriate. This would generate an issuance off of $23,500. The Administrator reported that if the conduit financing is issued by Little Canada, the city would still have $3.3 million available to it for 2012. The Administrator noted that the City generally does not issue debt. He also pointed out that the SMHS conduit financing would not be a liability of the City or Little Canada taxpayers. The $23,500 issuance fee to Little Canada could be used for economic development purposes or any other use that the Council say fit. The Council indicated that they were comfortable with the concept noting that one of the SMHS group homes is located in Little Canada. The City 11