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~..,'y of <br /> <br />iver <br /> <br />Item #4.5. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />Lori Johnson, Asst. City Administrator/ <br />Finance Director <br /> <br />DATE: <br /> <br />November 17, 1997 <br /> <br />SUBJECT: <br /> <br />Resolution Authorizing the Execution <br />and Delivery of a Supplement to the <br />Lease Purchase Agreement and <br />Continuing Disclosure Agreement in <br />Reference to Refunding the 1991 EDA <br />Lease Revenue Bonds <br /> <br />At the November 10 EDA meeting, the EDA approved a resolution <br />authorizing the issuance of the EDA's City Hall and Law Enforcement <br />Facility revenue refunding bond, series 1997 and the execution and delivery <br />of a supplement to lease purchase agreement and a supplement to trust <br />indenture in connection therewith. Simply put this means that the EDA <br />awarded the sale of the refunding bonds and approved the changes to the <br />lease agreement and the trust indenture as required as part of the refunding <br />process. <br /> <br />The successful bidder was Piper Jaffray, Inc. with a true interest rate of <br />5.0395 percent. This interest rate is slightly better than earlier projections <br />and yields a total net savings of $147,480.17. This savings is captured <br />throughout the life of the bond in the form of reduced rent payments required <br />to meet debt obligations. <br /> <br />Action Requested <br /> <br />The City Council is asked to approve the attached resolution authorizing the <br />execution and delivery of a supplement to lease purchase agreement and <br />continuing disclosure agreement in order to finalize the refunding of the <br />EDA's 1991 City Hall lease revenue bonds. <br /> <br />\\elkriver\sys\shrdoc\council\chbonds.doc <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />