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City Council Meeting of August 18, 2008 <br />Page 5 of 6 <br />Approve Resolution Authorizing Sale of General Obligation TIF Refunding Bonds <br />In 2000, the City of Hugo issued Tax Increment Bonds in the amount of $1,885,000. The bond proceeds <br />were used to finance the acquisition and improvement of property into what has become the Bald Eagle <br />Industrial Park. These bonds were deemed taxable and carried interest rates ranging from 6.8% - 7.6%. <br />However, a call provision was included in the bond documents whereby all bonds maturing in the years <br />2009 through 2018 are subject to repayment on February 1, 2009. The Finance Department requested a <br />review of the current issue by the City's financial consultants, Springsted, Inc., to determine if these <br />bonds should be refunded by lower interest bonds. City Finance Director Ron Otkin explained that staff <br />has determined that the City could realize a savings of approximately $94,000 by calling the outstanding <br />bonds and replacing them with new bonds. <br />Haas made motion, Grander seconded, to approve RESOLUTION 2008-38 PROVIDING FOR THE <br />COMPETITIVE NEGOTIATED SALE OF $1,395,000 TAXABLE GENERAL OBLIGATION TAX <br />INCREMENT REFUNDING BONDS, SERIES 2008A. <br />Upon roll call voting Aye: Granger, Petryk, Haas, Puleo, Miron <br />Voting Nay: None <br />Motion carried. <br />Walker Methodist Forest Bay Lodge Proiect — Briggs & Morgan, Mary Ippel <br />At its August 5, 2008 mid -year budget review meeting, the Council learned from Finance Director Ron <br />Otkin the interest of the City of Forest Lake to utilize the bonding authority of the City of Hugo for the <br />sale of $10 million dollars in conduit financing for the construction of a senior housing complex in the <br />Headwaters development in Forest Lake. Mayor Fran Miron directed staff to place this issue on the <br />August 18, 2008 Economic Development Authority meeting where the EDA discussed the project and <br />recommended approval to the Council. Bond Counsel Mary Ippel from Briggs & Morgan was present <br />along with Forest Lake Community Development Director Doug Borglund and representatives from <br />Walker Methodist. They presented the proposal to the Council for consideration. Mary explained there <br />would be no cost or liability to the City of Hugo, and in turn, the City of Hugo would receive a fee of <br />$25,000 to cover administrative costs. Doug and representative from Walker Methodist explained the <br />project was a 206 unit facility consisting of all levels of senior care. <br />Haas made motion, Granger seconded to schedule the public hearing for September 15, 2008 and <br />approve RESOLUTION 2008-39 CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A <br />HOUSING FINANCE PROGRAM AND THE ISSUANCE OF REVENUE NOTES TO FINANCE A <br />SENIOR HOUSING FACILITY PURSUANT TO MINNESOTA LAW, AND AUTHORIZING THE <br />PUBLICATION OF A NOTICE OF THE HEARING (WALKER FOREST BAY LODGE PROJECT). <br />Upon roll call voting Aye: Petryk, Haas, Puleo, Granger, Miron <br />Voting Nay: None <br />Motion Carried. <br />Vacancy on Carnelian -Marine -St. Croix Watershed District <br />City staff has been informed by the Carnelian -Marine -St. Croix Watershed District that Frederick <br />