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Office ol: <br />JOEL R. HANSON, Administrator <br />515 Little Canada Road <br />Little Canada, MN 55117 <br />612.484 -2177 <br />FAX: 612- 484.4538 <br />CITY OF LITTLE CANADA <br />RAMSEY COUNTY, MINNESOTA <br />MEMO <br />TO: Mayor and City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: January 10, 1990 <br />RE: Fire Hall Financing <br />MAYOR <br />Michael Fahey <br />COUNCIL <br />Beverly Scalze <br />Bill Blesener <br />Rick Collove <br />Jim LaValle <br />Based on the information discussed at the Workshop Meeting of January <br />4, 1990 and on the costs of financing for this project, the revised <br />budget is as follows: <br />Building 12,000 sq. ft. @ $75/sq. ft. 900,000 <br />Site Development 239,500 <br />Furnishings & Equipment 80,000 <br />Contingency (10% of Building & Site Dev.) 125,000 <br />Professional fees (Architect) 85,500 <br />Legal (Acquisition) 20,000 <br />Land Differential (300,00 - 250,000) 50,000 <br />Net Financing Costs (Discount, capitalized <br />interest, administrative, fiscal agent, etc. <br />& interim interest earnings) 120,000 <br />TOTAL BOND ISSUE 1,620,000 <br />The Council must decide their comfort level with these figures. One <br />comment I would make is that it would be unwise to cut the size of <br />the bond issue unless definite cost savings can be determined tonight <br />(i.e. reduce building size or commitments for extra donations). If <br />you are comfortable with the building size, then we should use these <br />figures to ensure a successful project. <br />The other comment I have is that by sizing the bond issue as <br />indicated does not commit us to spending that amount of money. If <br />savings can be achieved as we go through this process, then unused <br />bond proceeds would be available to reduce future debt levies. The <br />Council may want to specify any understandings they deem necessary in <br />this regard. <br />Page 1 <br />