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RECOMMENDATIONS <br />Re: Recommendations for the Issuance of $3,500,000 Lease Revenue Bonds, Series 1997 <br />The bonds will be issued by the Lino Lakes Economic Development Authority ("EDA") for the <br />benefit of the City of Lino Lakes to finance the construction of municipal complex in the City. <br />The composition of the issue is shown on page 4. <br />We recommend the following for the bonds: <br />1. Action Requested <br />2. Sale Date and Time <br />3. Principal Amount of Offering <br />4. Repayment Term <br />5. First Annual Appropriation and Source <br />of Payments <br />6. Prepayment Provisions <br />7. Credit Rating Comments <br />8. Bank Qualification <br />To establish the date and time of receiving <br />bids and establish the terms and conditions <br />of the offering. <br />Monday, November 10, 1997 at 11:00 A.M. <br />with award by the Authority Board at <br />6:00 P.M. of that same day. <br />$3,500,000 <br />Principal payments will be made annually <br />February 1, 2000 through 2019. Interest <br />payments on the issue will be made semi- <br />annually each February 1 and August 1, <br />commencing August 1, 1998. <br />The City will make its first appropriation for <br />lease payments in its budget for fiscal year <br />1998. Each annual appropriation made by <br />the City will support the August 1 interest <br />payment and the subsequent February 1 <br />principal and interest payment. Capitalized <br />interest has been included in the principal <br />amount of the issue to cover interest <br />payments due through February 1, 2000. <br />Bonds maturing on or after February 1, 2006 <br />will be callable February 1, 2005 at a price of <br />par plus accrued interest. <br />We recommend the Authority apply to <br />Moody's Investors Service for a rating on the <br />bonds. The Authority's rating designation on <br />the lease revenue bonds will be determined <br />in conjunction with the rating review of the <br />City's general obligation issues. Ratings on <br />lease revenue bonds are lower than the <br />issuer's general obligation rating. Moody's <br />will require title insurance before rating the <br />issue. <br />The City and the EDA together will not be <br />issuing more than $10,000,000 of tax- <br />exempt obligations in 1997, and therefore <br />this issue will be bank -qualified. Issues <br />