06-09-1986 CC MIN - Laserfiche WebLink

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e e e Page 2 City Council Minutes June 9. 1986 the Highway Department and central administration offices. Ms. Drude indicated that Minnesota Statute 641.24 allows a City located within the County or a duly appointed County HRA the authority to issue Unlimited Tax Lease Obligation bonds to finance the jail and law enforcement portion of the County's building program. Ms. Drude reviewed her memorandum to the County Board. dated May 13. 1986 (attached and made part of these official minutes). Ms. Drude indicated that Page 1 outlines costs anticipated for jail/law enforcement section of the project at a total of $1.690.000. Ms. Drude further reviewed costs for the remainder of the project at a total of $2.667.275. Ms. Drude explained the financing options available to the County. She further explained that the County Board has directed her and Mr. Palmer to request that the City of Elk River become involved since the facility is located within the City limits of Elk River and would be beneficial to the City. She further indicated that at this time the County Board is unsure as to whether or not they should pursue the entire project or only the jail facilities. which is most urgently needed. Ms. Drude indicated that if part of the financing were provided through the Unlimited Tax Lease Obligation bonds. the County may be able to come up with the remaining monies to finance the entire building program and bid as a large project. Ms. Drude explained that to pursue a referendum to raise the tax levy would be time consuming. She further explained that if the referendum failed. the County would still have an option for mandatory levy. but that would drag out the process even longer. Ms. Drude explained the bonding process as follows: The City would lease the existing facilities from the County. the City would issue bonds to finance the project. and the City would then lease the upgraded facility back to the County. who would make lease payments to trustee on behalf of both the City and County. who would then make the bond and interest payments. At the end of the lease term. the title would be conveyed to the County. Ms. Drude assured the City. such as would be covered fund. Ms. Drude the costs to parties involved. the City Council that any legal fees for review of in the bond issue and come indicated that they would a minimum to protect the costs incurred by the documentation. out of the County's attempt to keep interests of all