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