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515 Little Canada Road Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: November 26, 1997 <br />RE: Montreal Courts Tax - Exempt Financing <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morel= <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />The Public Hearing regarding the issuance of $20,000,000 in tax exempt bonds is scheduled for <br />6:30 p.m. on Tuesday, December tad. The proposed resolution regarding your approval of this <br />program is attached for your review. (It is likely changes will be made prior to Tuesday's <br />hearing.) The resolution does not specifically address the addition tax payment HDAC will be <br />making to us. However, Mary Ippel has informed me that it is best addressed in the loan <br />agreement. <br />Also attached is a revised spreadsheet indicating the basis for this payment. Due to the fact the <br />School District has reduced its standard tax rate and added a market value based rate, the City's <br />share of the total tax bill has increased from 14% to 15.8 %. Therefore, I have asked the <br />developers to base the reimbursement on the actual city portion of 1998 taxes using a flat <br />amount. This ensures us of collecting the $67,503 estimated for 1998 over the life of the bonds <br />rather than be subject to a set percentage (14 %) when our actual percentage of the total could be <br />higher. The Developers have agreed to this modification. <br />Cc: Jim Echtenkamp <br />Page 1 <br />