Laserfiche WebLink
Q r,4 Cfranat <br />515 Little Canada Road, Little Canada. MN 55117-1600 <br />(651) 766 -4020 / FAX: (651) 766 -4048 <br />www.ci.little- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 4, 2005 <br />RE: Update on New Harmony Care Center, Inc. Financing <br />MAYOR <br />13111 tilesener <br />COUNCIL <br />Jim LaValle <br />Rick Montour <br />Barbara Allan <br />John 1<eis <br />ADIbIINISTRATOR <br />Joel R. Hanson <br />State was recently informed by our Briggs & Morgan, the City's bond counsel, that we will <br />not be issuing the financing for the New Harmony Care Center project as originally discussed. <br />Rather, they are asking us to transfer $5,000.000 of our "bank qualified" tax- exempt financing <br />authority to the St. Paul Port Authority. The Port Authority will then issue the debt on behalf <br />of this project. Apparently, this has always been the intention, but that fact was not <br />communicated to Briggs & Morgan or us until the past few days. <br />The implications for the City are essentially the same as before, with the notable exception <br />that we will not be issuing the debt. We will still collect our one percent issuance fee and <br />New Harmony will reimburse us for our legal expenses. (Note: They will be substantially <br />less given we will no longer be the issuing authority.) <br />We will still be utilizing one -half of our bank qualified 510.000.000 annual limit. However, <br />this should not be a problem as there are no plans on the horizon for the issuance of over <br />55.000.000 in tax - exempt debt in 2005. <br />Resolutions will be presented at our next meeting to complete our end of the transaction. This <br />memo is only intended to update you on the circumstances surrounding our involvement and <br />no action is necessary at this time. <br />