05-26-1998 EDA Packet - Laserfiche WebLink

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RECOMMENDATIONS Re: Recommendations for the Issuance of $5,350,000 Lease Revenue Bonds, Series 1998A (the "Bonds") We respectfully request your consideration of the above -named issue. Proceeds of this issue will be used to finance a portion of the costs for constructing a new Civic Complex to be leased to the City of Lino Lakes (the "City"). We recommend the following for the bonds: 1. Action Requested 2. Sale Date and Time To establish the date and time of receiving bids and establish the terms and conditions of the offering. Monday, June 22, 1998 at 11:30 A.M. with award by the Board of Commissioners of the Economic Development Authority at 6:00 P.M. that same day. 3. Authority and Purpose for the Bond Issue The Bonds are being issued pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 and Chapter 475 to finance a portion of the costs of constructing a civic complex to be leased by the City. 4. Principal Amount of Offering $5,350,000 5. Repayment Term Source of Debt Service Revenues 7 Prepayment Provisions 8. Credit Rating Comments The Bonds will mature annually each February 1, 2001 through 2019. Interest on the Bonds is payable semiannually each February 1 and August 1, commencing August 1, 1999. Debt service will be payable solely from the revenues derived from the lease of the financed project to the City. Bonds maturing on or after Februay 1, 2007 will be callable February 1, 2006 and any day thereafter at a price of par plus accrued interest. We recommend the EDA apply for a rating on this issue from Moody's Investors Service. The Bonds are payable from an annual appropriation by the City and are not a general obligation of the EDA; therefore, the rating will be based on the City's credit rating. The City's rating is currently "Baal." Typically, lease obligations are rated one or two "notches" lower than the general obligation bond rating of the entity. It is