11-14-07 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL NOVEMBER 14, 2007 THE proceeds of which will be loaned to St. John's to pay or refinance, by EVANGELIST prepaying existing debt incurred by the Borrower, to pay a portion of the costs of the Project and will be repaid by the Borrower. Al Erickson, Catholic Finance Corporation, appeared before the Council requesting the City's approval for St. John's to use its bonding authority and refinance the original loan on St. John's School with tax exempt debt. Erickson pointed out that this would in no way obligate the City relative to this debt. The City Administrator reported that the City would be lending its name to St. John's in order that they can obtain tax-exempt bonds. This debt would not be an obligation of the City's nor would it impact the City's levy or bond rating. There is no risk to the City whatsoever. The City Administrator also pointed out that this is not Tax Increment Financing (TIF). St. John's would be selling tax-exempt bonds for the refinancing of their school project debt. St. John's will have to qualify financially in order to do so, and this will reduce debt carrying costs for St. John's. There was no one present from the general public wishing to comment on this matter. Upon motion by Allan, seconded by Montour, the public hearing was closed. Mr. McGraw introduced the following resolution and moved its adoption: RESOL UTION NO. 2007-1I-287 -GRANTING PRELIMINARY APPROVAL TO A PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 969.154, AND AUTHORIZING THE SUBMISSION OFANAPPLICATION TD THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT AND THE PREPARATION OF NECESSARY DOCUMENTS (ST. JOHN THE EVANGELIST SCHOOL PROJECT) WITH THE STIPULATION THAT ST. JOHN'S PAY THE CITY OF LITTLE CANADA THE AGREED UPON.25% ADMINISTRATION FEE AS WELL AS REIMBURSEMENT OF THE CITY'S COSTS RELATIVE TO THIS ACTION The foregoing resolution was duly seconded by Keis. Ayes (5). Nays (0). Resolution declared adopted.