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iai^» <br />’••*■ - **^ —. \ _ , <br />t::- ■*:• --^ <br />* * , *• <br />,:.- ... . ' .Vi '.%•.-...fvv/.!-,^T. ;;:1.* Jf :V.:. <br />i <br />IlliJ <br />s?s <br />fe>; • ..V <br />F'^ • • ' <br />A^: . <br />A v.'X'X <br />m m aa^iaixl <br />ii®®&.ak'^va::,x'--i-.-v;i''" <br />m&AmmmmmmmmfeA? <br />il»i <br />ii* <br />smAm m-AA'AA! <br />"MiA. <br />■ ■■ ■, . ■• : : • ' <br />'•a - <br />H <br />V'*/; "' ' - '' 'V* '' . ^ <br />' : '-AXg:;:;-- a.-gfe^' '■;; <br />BigjaiM/. ■ a- ■'‘5>; -m* <br />•a ^'■•7 <br />■L <br />mm <br />'»jjaas»v/ :' <br />Pv. <br />m- ■Ai'.A.M <br />Si.yi5f <br />iy}ig^P‘!AA^mA <br />SfliRj <br />'< V?aaas <br />.'■■i <br />mmm M <br />p»i#8S-iXa <br />Hi:??; afexa;v ai;:*.k:^v^:jil <br />■fSi; <br />mii "'.. <br />^ yf jB <br />' -i <br />.■■'■■ a!' ■' '*^ <br />' ■ .itf X ■ ■ >;» <br />MiAAWsimia^K 'aMa: <br />■4'A*MJiW«lv>>-i?'*.v -...•■ .1' r.':fm:kmm■.-.aa'-' ■• ■, mm ■•'» ■a.l. '-^iiAm^AmArnAMA'- ■-■.AiAM-i <br />M <br />|iS <br />'•■’• ‘ .jA' <br />IMi^ <br />Kiisils,^ <br />«a <br />f^' svM <br />AmAmMrnmA <br />m m,pmrnf <br />-isam <br />V .-a ■•:'•)$L^nAA. A.i <br />A-.i-L' <br />Mark Demhardson <br />City Adininlatralor <br />City Hall <br />Boxee <br />Crystal Bay, MN 55323 <br />Re: Lease financing; installment purchase contracts <br />I look forward lo the November 8 Facilities Workshop and a discussion of financing <br />options. Besides options of cash purchase and voted general obligation bonds of the City, <br />thu Council may consider the following: <br />Lease Revenue Ronds may be sold by an entity such as a Building Authority, Housing <br />and Redevelopment Authority (HRA), or Economic Development Authority (EDA) or <br />Port Authority to provide funds for « iiroject such as a municipal building. The City <br />Council might consider fonning a noa-profit Building Authority under Minnesota <br />Statutes, Chapter 317, naming the Council and city staff as officers. Another option <br />is to lease directly from a leasing company which provides the funds for the project. <br />Tl>e City then enters into a Lease With Option to Purchase agreement which will provide <br />for lease payments sufficient to cover the principal and interest on the Lease Revenue <br />Bonds (or other lease obligation). The Lease is not a general obligation of the City but is <br />payable from annual appropriation of sufficient funds for debt service. It is, of course, <br />important to make it clear to prospective investors that the facility is essential to the <br />operation of the City and to provide other infonnation which we can discuss if thorn is <br />interest. After the final payment and for the price of $1, the municipal building belongs <br />to the City of Orono. <br />Because the Leu.se i.s nut a general obligation and is payable from annual appropriation. It <br />is not "debt" for debt limit purposes and is nv-i included in calculatitms of debt per capita <br />(for Moody's Investors Service bond ratbigs, for Install ’■■>. <br />OfFICrS IN MINNCAPOMS AND WAUKtSHA <br />2950 NOfweSt Ctffitisr • 90 Soulli Suvenih Street • Winneapolis. MN 55402*4100 • 6l2*S39*829l • FAX 6l2-S39«0654 <br />mi-'m WWM0MiMs;i.:Ai:A:mmm-M <br />*:' v-Xi <br />Am <br />At <br />a <br />}"--3 <br />-= '% <br />i-V <br />mi:-mm <br />4:ja« <br />TJ <br />mmm <br />^■“A-- :-r A: ^t.;:.-, <br />ili Ktii^ <br />:W^ '•'s <br />wm <br />Am mmm m I