5.0.-6.0. EDSR 08-12-2002 - Laserfiche WebLink

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OVERVIEW • This report describes the proposed plan for the Economic Development Authority of the City of Elk River, Minnesota(the "Authority") to issue $8,000,000 Public Safety Building Lease Revenue Bonds, Series 2002A (City of Elk River, Minnesota Lease Obligation) (the "Series 2002A Bonds"). This report has been prepared by Ehlers &Associates, Inc. in consultation with City and Authority Staff and bond counsel. This report deals with: • Purpose and components of bond issue. • Structure. • Other considerations in issuing bonds. • Market conditions. • Issuing process. • PURPOSE The Series 2002A Bonds are being issued by the Authority pursuant to the powers provided or referenced in Minnesota Statutes, Sections 469.090 - 469.1081, and a Mortgage and Security Agreement and Indenture of Trust dated as of September 1,2002(the"Indenture")between the Authority and U.S. Bank National Association in St. Paul, Minnesota (the "Trustee") for the purpose of financing the cost of constructing and furnishing the new public safety facility(the "Project"). The total cost of the Project is estimated to be $8,000,000 which includes building construction costs, excavation, landscaping, interior finish, and essential furnishings. The Estimated Sources and Uses of Funds required to finance the Project are included in Exhibit 1.00. The sources and uses will change slightly when the interest rates are set on August 12th. The Project will be constructed on property owned by the City on the campus where the Elk River City Hall is located. Due to financing requirements, separate legal descriptions and security interests are required for the existing City Hall property and the proposed Project for the Elk River Fire Department and Police Department and their respective offices and shared facilities. Construction of the Project is scheduled to begin by the Summer of 2002 and to be completed and occupied by the Summer of 2003. •