7.3. SR 08-21-2017 - Laserfiche WebLink

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Request for Action To Item Number Mayor and Council 7.3 Agenda Section Meeting Date Prepared by Public HearingsAugust 21, 2017Lori Ziemer, Finance Director Item Description Reviewed by Spectrum School Project Host Approval and Cal Portner, City Administrator Agreement for Payment in Lieu of Fees Reviewed by Action Requested  Adopt, by motion, a resolution granting host approval to the issuance of charter school lease revenue bonds under Minnesota Statutes, Sections 469.152 - 469.1655.  Approve, by motion, an agreement for payment in lieu of fees. Background/Discussion On April 17, 2017, the City Council approved a Conditional Use Permit (CUP) for Spectrum High School to establish an institutional use at 17823 Industrial Circle allowing them to purchase and expand its educational opportunities into a third location. Spectrum High School has requested the City of Bethel to provide conduit debt financing on behalf of their project. The issuance of the charter school lease revenue bonds by the City of Bethel does not constitute any obligation of the City of Elk River and are payable solely from revenues pledged by Spectrum High School. Per state and federal law, the governmental entity with jurisdiction over the project site must hold a public hearing and give host 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. 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 a fee (PILOF) in the amount of $42,462.46 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 the acquired property over a four year period, as indicated in their CUP approval. The fee agreement does not waive any future fees the school might incur from the city. Attachments  Resolution giving host approval and consenting to the issuance of charter school lease revenue bonds (Spectrum Building Company) under Minnesota Statutes, Sections 469.152- 469.1655.  Agreement for payment in lieu of fees. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity