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<br /> <br />Item # 7.1. <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services Director <br /> <br />DATE: March 21, 2005 <br /> <br />SUBJECT: Consider Proposal for a Private School Facility for the Church of St. <br />Andrew for the St. Andrew School and Consider Resolution Giving <br />Preliminary Approval to this Project and Resolution Approving the <br />Issuance and Sale of Such Revenue Notes <br /> <br />At the February 22, 2005 City Council meeting, the Council approved increasing the amount of tax <br />exempt fmancing for the Church of St. Andrews to $2.5 million. Although a public hearing has <br />already been held on this item, a second hearing is required because the amount has increased. A <br />representative from St. Andrew's will be present at the public hearing to address any questions raised <br />during the hearing about the project. <br /> <br />Additionally, the Council is asked to consider two resolutions: 1) a resolution giving preliminary <br />approval to a project pursuant to Minnesota Statute s469.154 and authorizing the submission of an <br />application to the Minnesota Department of Employment and Economic Development and the <br />preparation of necessary documents; and 2) a resolution approving the issuance and sale of the City <br />of Elk River Minnesota Educational Facilities Revenue Notes Series 2005A. These resolutions <br />authorize the city to enter in to all of the necessary agreements to complete the fmancing for this <br />p'roject. As you will recall, the city is not responsible in any way for this debt. In addition, the <br />Church of St. Andrew is responsible for paying any incremental interest cost the city incurs if the <br />city exceeds the bank qualified limit in 2005 due to the issuance of this revenue note. St. Andrews is <br />also responsible for reimbursing the city for all of its out-of-pocket costs related to the issuance of <br />this note. <br /> <br />Action Requested <br />1. Council is asked to hold a public hearing on issuance of $2,500,000 in tax exempt fmancing for <br />the non-religious portions of the renovation, equipping of, and construction of additions to the St. <br />Andrew School. <br /> <br />2. The Council is asked to consider a resolution giving preliminary approval to a project pursuant to <br />Minnesota Statute s469.154 and authorizing the submission of an application to the Minnesota <br />