05-26-1998 EDA Packet - Laserfiche WebLink

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Lino Lakes Economic Development Authority May 20, 1998 The City has entered into a lease agreement with the Centennial School District whereby the District will lease the Early Childhood portion of the facility. Pursuant to the terms of that lease, the District has agreed to pay not more than $1.2 million for the next 10 years. Receipt of those lease payments will commence in 1999 and are currently scheduled at $120,000 per year. This payment does not cover all of the financing costs over the term of the lease. Page 6 shows the structure of this issue taking into consideration not only the expected lease payments from the District but also the City's current lease obligations for the fire station. The 1998 levy by the City covers the period of time from the date of the bonds through February 1, 2000. The total levy of $407,339 shown for 1998 is net of the school district contribution and includes the levy for the fire station. The levy increase due to this issue for 1998 is estimated to be $290,751 which is consistent with our earlier projections. In order to reduce the initial total levy to a level around $400,000, we have delayed the repayment of principal of this issue until February 1, 2001. Thereafter, we have maintained an average debt requirement of approximately $455,000 for the City's lease revenue obligations. We note that since the levies are for the payments of debt obligation of another jurisdiction (the EDA) such levies are outside the current provisions of the levy limitations. Respectfully submitted, SPRINGSTED Incorporated Ims Provided to Staff: a) Summary of Arbitrage Rules b) Rebate and Continuing Disclosure Addenda Page 4