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REQUEST FOR ACTION <br />To Item Number <br />Ci Council 6.3.B. <br />Agenda Section Meeting Date Prepared by <br />Administration une 16, 2008 Tim Simon, Finance Director <br />Item Description Reviewed by <br />Resolution Accepting The Offer Of The Minnesota Public Lori ohnson, Ci Administrator <br />Facilities Authority To Purchase A $2,431,500 General Reviewed by <br />Obligation State-Aid Loan Note of 2008, Providing For Its <br />Issuance And Authorizing Execution Of A Minnesota Public <br />Facilities Authority Project Loan And General Obligation Bond <br />Purchase A reement <br />Action Requested <br />The City Council is asked to approve a resolution accepting the offer of the Minnesota Public Facilities <br />Authority to purchase a $2,431,500 General Obligation State-Aid Loan Note of 2008, providing for its <br />issuance and authorizing execution of a Minnesota Public Facilities Authority Project Loan And General <br />Obligation Bond purchase agreement. <br />Background/Discussion <br />Earlier this year the Council approved the 193`d Avenue Project. The financing for the 193`d project will <br />be paid from our current and future state-aid allotments and SAFETEA-LU federal funds over the next <br />four or five years depending on the final cost of the land acquisition and construction bid. To finance the <br />upfront construction costs we received approval for a transportation revolving loan in the amount of $2.4 <br />million, at an interest rate of 1.311 percent repaid over five years, with repayment from our future <br />Municipal State-aid allotment. The land acquisition costs will also be repaid out of the MSA allotment, <br />but based on the appraisals it hopefully will be under the estimated amount. <br />The City's bond attorney has reviewed all agreements and resolutions. <br />Financial Impact <br />Future State-Aid allotments will be used to repay the loan and land acquisition costs. The loan is adjusted <br />based on the actual costs incurred; therefore it cannot exceed $2,431,500 but could be less depending on <br />the construction bid. <br />Attachments <br />• Resolution Accepting The Offer Of The Minnesota Public Facilities Authority To Purchase A <br />$2,431,500 General Obligation State-Aid Loan Note of 2008, Providing Fox Its Issuance And <br />Authorizing Execution Of A Minnesota Public Facilities Authority Project Loan And General <br />Obligation Bond Purchase Agreement. <br />Action Motion by Second by Vote <br />C:\Documents and Settings\jmiller\Local Settings\Temporary Internet Files\OLK3E\193rd loan resolution.doc <br />