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~ity of <br /> <br />iver <br /> <br />MEMORANDUM <br /> <br />Item # 6.5. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor & City Council <br /> <br />Pat K1 ae rs, Ci ty A d~j~/~,~itor <br />July 6, 1998 <br /> <br />Guardian Angels Request <br /> <br />Assistant City Administrator Lori Johnson and I have met with <br />representatives of Guardian Angels regarding a request from them to have <br />the city issue revenue bonds for their upcoming project on Joplin Avenue and <br />to refinance some previous projects. The city has been the bonding agency <br />for other entities in the past, including having the HRA issue bonds for the <br />county jail a number of years ago. Documents are currently being reviewed <br />by our bond consultant. There can not be any liability on the city's part for <br />participating in this bonding activity, and as long as there is no net loss by <br />way of a higher interest rate on city bonds, then staff can support this <br />request. The higher interest rate on city bonds is an issue as this proposal <br />will push the city over the $10 million mark in 1998. In this regard, <br />Guardian Angels has committed to "make the city whole" as once we exceed <br />$10 million in bonds, we generally have a higher interest rate on local bond <br />issues. The details on this interest rate arrangement are being worked out <br />by Lori and our bond consultant with Guardian Angels. <br /> <br />Action on July 6, 1998, is to call a public hearing for July 27, 1998, to <br />consider the issuance of the bonds. Representatives of Guardian Angels will <br />be in attendance at this meeting, as will Assistant City Administrator Lori <br />Johnson, to discuss this proposal in further detail. <br /> <br />\\elkriver \sys\shrdoc\council\gar qst.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 />