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MINUTES <br />CITY COUNCIL <br />MARCH 14, 2012 <br />million for the acquisition and renovation of the former Ethan Allen store <br />in Maplewood and the refinancing of 17 group homes. The Administrator <br />indicated that this would be tax exempt financing which is not a direct <br />obligation or credit risk to the City. The Administrator noted that a <br />municipality has a $10 million annual bank qualified limit for this type of <br />purpose. The City recently utilized $2 million of this limit assisting a <br />Presbyterian Homes project in Arden Hills. He noted that the City does <br />not typically issue debt, and factoring out the $2 million for Presbyterian <br />Homes and the $4.9 million for SMHS, that would leave the City with <br />$3.1 million should it need to issue debt in 2012. The Administrator <br />stated that there is the possibility that the City could bond for a new Public <br />Works facility in 2012. He also noted that tax increment debt does not <br />count toward this limit. <br />The Administrator reported that the City has charged an issuance fee for <br />transactions of this nature. In discussing the appropriate level of issuance <br />fee, Mary Ippel of Briggs and Morgan indicated that a .5% issuance fee is <br />reflective of the market. The Administrator reported that in addition to the <br />issuance fee, any costs incurred by the City will be reimburses. I -Ie <br />reported that SMHS and Bremer Bank have indicated their acceptance of <br />these terms. <br />Eric Maki, Bremer Bank, representing SMHS in this matter, reported that <br />SMHS does fantastic work with developmentally disabled people, and this <br />financial transaction will free up money that SMHS can use for additional <br />programming in the Twin Cities area. <br />There was no one else present from the general public wishing to <br />comment on this matter. <br />Upon motion by Keis, seconded by Boss, the public hearing was closed. <br />Keis introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2012 -3 -44 — APPROVING THE ISSUANCE AND <br />SALE OF A COMMUNITY SERVICES REVENUE NOTE (SOUTH <br />METRO HUMAN SERVICES PROJECT), SERIES 2012 AND <br />AUTHORIZING THE MAYOR, ACTING MAYOR, AND CITY <br />ADMINISTRATOR TO EXECUTE THE DOCUMENTS RELATING <br />THERETO <br />The foregoing resolution was duly seconded by Montour. <br />Ayes (4). <br />Nays (0). Resolution declared adopted. <br />2 <br />