10/24/2005 Council Packet - Laserfiche WebLink

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• • • AGENDA ITEM 1C STAFF ORIGINATOR Al Rolek MEETING DATE October 24, 2005 TOPIC Consider Resolution 05 -158 Calling a Public Hearing Regarding the Issuance of Revenue Notes For The Benefit Of YMCA VOTE REQUIRED BACKGROUND Simple Majority The City of Lino Lakes is involved in a partnership with the YMCA of Greater St. Paul for the construction of a YMCA facility in the Legacy at Woods Edge development. The YMCA has made a request to the City to issue tax exempt financing of a portion of the project cost. Minnesota Statutes, Sections 469.152 to 469.165, authorizes the City to issue tax exempt revenue bonds or notes to finance, in whole or in part, the costs of the acquisition, construction, reconstruction, improvement, betterment, or extension of a project constituting any properties, real or personal, used or useful in connection with a revenue producing enterprise, whether or not operated for profit. The YMCA of Greater Saint Paul has proposed that the City issue tax - exempt revenue Notes or obligations in one or more series in the approximate principal amount not to exceed $3,000,000 and loan the proceeds of the Notes to the Borrower to finance the construction and equipping of an approximately 37,000 square feet recreational facility. The YMCA has made application for such financing in accordance with the City's Tax- Exempt Financing Policy and has submitted the appropriate application fee. The YMCA has requested the waiver of the 1% administrative fee outlined in the policy in consideration of the City -YMCA partnership. Pursuant to Minnesota Statutes, Section 469.154, subdivision 4 and Section 147(f) of the Internal Revenue Code of 1986, as amended, prior to undertaking the financing of the Project, the City is required to conduct a public hearing with respect to the proposed financing of the Project. Resolution 05 -158 calls for the City Council to meet at 6:30 p.m. on Monday, November 28, 2005, to conduct a public hearing on the Project and issuance of the Notes as requested by the YMCA. It is staff's recommendation that the City Council approve Resolution 05 -158 setting a public hearing on the Project and issuance of the Notes requested by the YMCA. OPTIONS: 1. Adopt Resolution 05 -158. 2. Refer to Staff for further review. 3. Deny Resolution 05 -158. RECOMMENDATION' Option 1