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City of <br /> Elk - <br /> River Request for Action <br /> TO ITEM NUMBER <br /> Mayor and City Council 4.7 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> Consent July 15, 2013 Tim Simon, Finance Director <br /> ITEM DESCRIPTION REVIEWED By <br /> Resolution Authorizing Execution of a Joint Powers Agreement Jenny Bolton,Bond Attorney/Peter <br /> with the City of Albertville (Evans Park, Inc. Project) Beck, City Attorney <br /> REVIEWED BY <br /> Cal Portner, City Administrator <br /> ACTION REQUESTED <br /> Adopt a resolution authorizing the execution of a Joint Powers Agreement with the City of Albertville <br /> (Evans Park, Inc. Project) <br /> BACKGROUND/DISCUSSION <br /> In 1998, the city issued conduit bonds (tax exempt financing) for Guardian Angles to finance a <br /> multifamily rental housing facility for senior residents in Elk River. The project is owned and operated by <br /> Evans Park, Inc.,a Minnesota nonprofit corporation. <br /> With conduit bonds,the city has no liability or risk in the repayment;municipalities simply help make the <br /> bonds tax exempt. <br /> We have received a request to help refinance the 1998 bonds. When we recently refinanced our YMCA <br /> bonds,we used most of our $10,000,000 annual tax-exempt financing option for 2013. The bond <br /> attorney for Guardian Angles indicated they would see if another city or Sherburne County had capacity <br /> for designating the bonds as bank qualified in 2013. They recently talked to the City of Albertville,who <br /> agreed to help refinance. <br /> As part of the refinancing, a Joint Powers Agreement must be approved between the City of Albertville <br /> and the City of Elk River. <br /> The City of Albertville will refinance the remaining principal amount not to exceed $5,500,000. <br /> FINANCIAL IMPACT <br /> No financial impacts as conduit bonds are not an obligation or liability to the city. Since we are not <br /> issuing the refunding conduit bonds we will not charge any conduit bonding fees. <br /> ATTACHMENTS <br /> • Joint Powers Agreement <br /> • Resolution authorizing execution of a joint powers agreement with the City of Albertville <br /> (Evans Park, Inc. Project) <br /> N:\Public Bodies\Agenda Packets\7-15-2013\Final\x4.7 sr.docx Na <br />