EDSR MEMORANDUM 10-20-1997 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMEN eAVTHORITY MEMORANDUM TO: Economic Development Authority FROM: Lori Johnson, Asst. City Administrator/ Finance Director DATE: October 20, 1997 SUBJECT: Consideration of a Resolution Providing for the Competitive Negotiated Sale of the EDA's City Hall and Law Enforcement Facility Revenue Refunding Bond, Series 1997 In 1991 the EDA issued $2,740,000 in City Hall and Law Enforcement revenue bonds to finance the construction of City Hall. As is the case with all of the city's debt, we have been monitoring this issue for an opportunity to • refund the issue at a lower interest rate. Under the current market conditions, it is projected that refunding this issue now will result an estimated total net savings of in excess of$142,000. This equates to a present value savings of approximately $108,250. Because the market can fluctuate substantially in relatively short periods of time, a special meeting to approve the refunding was requested. Attached are Recommendations for the refunding as well as a copy of the resolution which, when approved, will set the sale date for November 10, 1997. At that time the EDA will be asked to approve a resolution awarding the sale. Subsequently, the City Council must also take action on the award and will be asked to approve similar action at its November 17 meeting. Since this is a lease revenue bond, no taxing authority is pledged either by the EDA or the city. A lease is in place between the city and the EDA which requires that the city annually appropriate funds for debt repayment. Action Requested The EDA is asked to approve the attached resolution Providing for the Competitive Negotiated Sale of the EDA's City Hall and Law Enforcement ipFacility Revenue Refunding Bond, Series 1997. 13065 Orono Parkway • P. 0. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment