7.2. SR 04-21-2014 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and Council 7.2 Agenda Section Meeting Date Prepared by Public Hearinj Aril 21, 2014 Tim Simon, Finance Director Item Description Reviewed by Spectrum School Project Cal Portner, City Administrator • Resolution Giving Host Approval to the Reviewed by Issuance of Charter School Lease Revenue Bonds • Agreement for Payment in Lieu of Fees Action Requested • Approve,by motion,a resolution granting host approval to the issuance of charter school lease revenue bonds under Minnesota Statutes,Sections 469.152 through 469.1651. • Approve,by motion,an agreement for Payment In Lieu of Fees. Background/Discussion On March 17, 2014, at the City Council Work Session, the Council reviewed the request by Spectrum High School for a Host Approval Agreement. Spectrum High School currently owns a building at 17796 Industrial Circle NW. The school is looking at purchasing a number of the units at 11044 Industrial Circle NE. Because the city is anticipating issuing General Obligation Sewer Revenue bonds as tax-exempt financing in 2014,we are not able to issue the amount of conduit bonds needed without exceeding our $10 million bank-qualified limit. As was the case in 2012,Anoka County has given preliminary approval to issuance of conduit bonds on their behalf. Per state and federal law, the governmental entity with jurisdiction over the project site must hold a public hearing and give approval to the issuance of the bonds even if the bonds are issued by another issuer. The city, county, and state meet the host jurisdiction requirement. Holding a public hearing as a host assumes no risk to the city with regard to bonds or the bonding process. The attached agreements have been reviewed by the City's bond attorney. Financial Impact The School has proposed a lump sum Payment In Lieu Of Fee (PILOF) in the amount of$56,043 due within 10 days of receiving the property tax exemption from Sherburne County. The funds will be released from escrow once the property tax exemption is received from the county. The amount was determined based on city taxes for a low-grade office on a typical flex building over a 4-year period, consistent with the 2012 agreement. The agreement does not waive any future fees the school might incur. P a w E R E U 6 Y NaA f RE]