08-13-1980 Council Agenda - Laserfiche WebLink

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-2- Paying for a new building is, of course, the problem. The Building Committee developed some alternatives which could lessen the burden all around. Some cities have indicated that they would support the idea of a building and would like to pay their share off in one lump sum at the front end. If enough cities wanted to do this, then it would lessen the amount of money the League would have to borrow, make it possible to retire the debt sooner, and gain the most savings -- by reducing the amount of interest which the League would have to pay for funds borrowed to construct a building. Other cities have indi- cated that they would like a longer period in which to meet financial commitments necessary to construct a building. The attached survey asks that you select the method of payment which you prefer. Please think about this carefully because the way cities want to deal with this issue will determine the future of the project. If a very substantial number of citiesdesiresto pay over the longest possible period of time -- say twenty years -- it will be impossible to receive lump sum payments from some cities and allow others to pay over a twenty -year period. Let me point out a few hard considerations for you. If the League is to obtain a building, it will probably never have a better opportunity. The City of St. Paul is donating the site. The St. Paul Port Authority will finance the project with a twenty - year tax - exempt bond at about 8.75 %, considerably under private money. St. Paul will also lend staff assistance from the Planning Department. So, from a financial point of view, it will never be this economical again. I expect that if we can't make the final arrangements after all the work by the Board, the Building Committee, and the City of St. Paul, we may as well forget the project. The future of the League is really up to you, the members. What you want, are prepared to finance are the controlling considerations. Please review the matter carefully. We need to know your response very soon. The staff will stand by your direction. Sincerely, Donald A. Slater Executive Director DAS:rmm Attache WOMOMmangnagg 47