HomeMy WebLinkAbout2005-114 Council ResolutionCITY OF LINO LAKES, MINNESOTA
RESOLUTION NO. 05 -114
ADOPTING PRIVATE ACTIVITY TAX- EXEMPT FINANCING GUIDELINES
WHEREAS, under the Minnesota Municipal Industrial Development Act,
Minnesota Statutes, Sections 469.152 to 469.1651 (the "industrial Development
Act "), the City of Lino lakes, Minnesota has the authority to issue revenue bonds
or notes to attract or promote economically sound industry and commerce to the
City, including the development of facilities by qualified 501(c)(3) organizations;
and
WHEREAS, under Minnesota Statutes, Chapter 462C (the "Housing Act ") the
City is authorized to issue housing revenue bonds to finance multi - family
residential housing projects for low and moderate income persons and elderly
persons; and
WHEREAS, the City Council is aware that such financing for certain private
activities may be of benefit to the City and will consider requests for tax exempt
financing subject to such state statutes; and
WHEREAS, the City Council considers tax exempt financing to be a privilege, not
• a right; and
WHEREAS, it is the judgment of the City council that tax exempt financing is to
be used on a selective basis to encourage certain development that offers a
benefit to the City as a whole; and
WHEREAS, it is the intent of the City Council to set forth guidelines for the use
and issuance of tax exempt private activity revenue bonds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino
Lakes, Minnesota, to adopt the Private Activity Tax - Exempt Financing Guidelines
for the City of Lino Lakes as described in the attached Exhibit A.
Passed by the Lino Lakes City Council this 8th day of August, 2005.
ATTEST:
Ann Blair, )ty Clerk
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AGENDA ITEM A
STAFF ORIGINATOR Al Rolek
MEETING DATE August 8, 2005
TOPIC Consider Resolution 05 -114 Adopting Private Activity Tax -
Exempt Financing Guidelines
Simple Majority
VOTE REQUIRED
BACKGROUND.
The YMCA has approached the City of Lino Lakes with a request to utilize private activity
revenue bonds to finance a portion of their Lino Lakes facility. This would allow them to
finance the construction of the facility with tax - exempt debt, saving the YMCA 1 -2% on the
interest rate they would have to pay on taxable debt financing. While working through this
process it came to Tight that the City does not presently have any guidelines for using this
type of financing. Staff has worked with our financial advisors, Springsted, Inc. and the
City's bond counsel, Kennedy and Graven, to write a set of guidelines that establishes
criteria under which the City will allow this type of financing and sets forth fees for such
activity.
Staff recommends that the guidelines be established by resolution. Resolution 05 -114
adopts private activity tax - exempt financing guidelines for the City that would apply to the
YMCA financing and any future requests for like financing.
OPTIONS
1. Approve Resolution 05 -114 adopting private activity tax - exempt financing
guidelines.
2. Refer to Staff for further review.
3. Deny Resolution 05 -114 adopting private activity tax - exempt financing guidelines.
RECOMMENDATION
Option 1.