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i 1 City Council Regular Meeting Minutes 03 September 14, 2004 Page 3 1 2 Mr. Gilligan indicated the bonds are proposed to be issued in up to four series in the aggregate. . 3 principal amount of up to $39,500,000. He noted two of the series of bonds will be secured 4 by a credit and liquidity support to be provided by a letter of credit or other credit facility to be 5 issued by LaSalle Bank, one of the series of bonds will be secured by a credit and liquidity 6 support to be provided by a letter of credit or other credit facility to be issued by Bremer Bank, 7 and the remaining series of bonds, if issued, will be sold to qualified investors. He stated 8 the debt service on the bonds will be payable solely from payments to be made by the 9 Borrower, adding that the City will not have any liability with respect to the bonds. He 10 indicated the Borrower will pay all City expenses with respect to the bonds, and upon 11 issuance of the bonds will pay the City a fee equal to one percent of the principal amount of the 12 bonds in accordance with the City's recently adopted guidelines for issuance of revenue bonds. 13 14 Mr. Gilligan noted that representatives of the Borrower are present to respond to any questions 15 concerning the proposed bonds. He stated to proceed with the proposed bond issue following 16 the public hearing, the Council should adopt the resolution approving the issuance of the bonds 17 and approving the housing program for the proposed development and its financing prepared in 18 accordance with Minnesota Statutes,Chapter 462C. 19 20 Discussion: 21 Mayor Pro-tem Thuesen opened the discussion calling for any questions of the Councilmembers. 22 23 Councilmember Faust clarified, for the public, that the item being discussed is not new. He noted 24 that the process has been in the works since the beginning of the re-development discussion, 25 adding that there is no financial obligation to the City. Mayor Pro-tem Thuesen stated that it is 26 important to point out that the City has no liability. 27 28 There was discussion with regard to if there would be any expense to the City throughout the 29 process. It was determined that they would not be. 30 31 Councilmember Horst reiterated the process and follow through of the financing plan, adding that 32 it is for the rental portion of the Silver Lake Village development. 33 34 Mayor Pro-tem opened the floor for questions by the public, in reviewing the Roberts Rules of 35 Order. 36 37 No one came forward to address the Council. 38 39 Mayor Pro-tem Thuesen closed the public hearing at 8:15 p.m. 40 41 Motion by Councilmember Horst, seconded by Councilmember Faust to Adopt Resolution 04- 42 061 Authorizing the Sale and Issuance of Variable Rate Demand Multi-family Housing Revenue 43 Bonds, The Landings at Silver Lake Project, Series 2004; Establishing the Security Therefore 44 and Authoring the Execution of Documents. 45 46 Motion carried unanimously.