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CITY COUNCIL <br />AGENDA ITEM 1I <br /> <br /> <br />STAFF ORIGINATOR: Sarah Cotton, Finance Director <br /> <br />MEETING DATE: September 9, 2019 <br /> <br />TOPIC: Resolution No. 19-118, Adopting Revised Private Activity Tax- <br />Exempt Financing Guidelines <br /> <br />VOTE REQUIRED: Simple Majority <br /> <br /> <br />BACKGROUND <br /> <br />In August of 2005, the City Council adopted Private Activity Tax-Exempt Financing <br />Guidelines. The YMCA had approached the City of Lino Lakes with a request to utilize <br />private activity revenue bonds to finance a portion of their Lino Lakes facility. At the time, it <br />came to light that the City did not have any guidelines in place for this type of financing. Staff <br />worked with Springsted, Inc. and Kennedy and Graven, to write a set of guidelines to establish <br />criteria under which the City would allow this type of financing and set forth fees for such <br />activity. <br /> <br />In 2018, the City granted host approval on the issuance of a note by the City of Columbia <br />Heights to finance the construction of the Love to Grow on facility in Lino Lakes and the <br />issuance of a note by the City of Falcon Heights to finance, in part, a senior living campus in <br />Lino Lakes. The City of Lino Lakes was not the issuer of these two notes; however, was <br />required to grant host approval to the issuance of the notes as the properties were physically <br />located within the boundaries of Lino Lakes. <br /> <br />During the discussion regarding granting host approval on these two projects, the City Council <br />expressed a desire to update the city’s policy, so that the city was a in a position to consider tax <br />exempt financing as a tool to facilitate future economic development within the community. <br /> <br />Staff worked with Julie Eddington, Kennedy and Graven, to prepare the suggested revisions to <br />the guidelines. The City Council reviewed the revisions at the September 3, 2019 City Council <br />Work Session. <br /> <br />RECOMMENDATION <br /> <br />Staff recommends that the revised guidelines be established by resolution. Resolution No. 19- <br />118 adopts revised private activity tax-exempt financing guidelines for the City that will apply <br />to any future requests for financing. <br /> <br />ATTACHMENTS <br /> <br />Resolution No. 19-118 <br />Revised Private Activity Tax-Exempt Financing Guidelines <br />