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82986.7 <br />TO: Mayor and City Council <br />FROM: Mari. Bernhardson, City Administrato�l.� N <br />DATE: August 29, 1986 <br />SUBJECT: Facilities Assessment - Financial <br />The City has been exploring with it's financial consultant means <br />by which the City might be able to finance a new facility. They <br />have indicated that they are exploring it and had been doing some <br />work on the amount to be financed, investments, financing costs <br />and appropriate vehicles. <br />It had been previously mentioned that one way the City could <br />proceed is a lease purchase arrangement. It has been brought to <br />our attention that there are certain lease purchase arrangements <br />by which the City establishes a Housing and Redevelopment <br />Authority, which in Orono's case is desired in conjunction with <br />Navarre redevelopment, and the Council appoint itself to its own <br />HRA. The HRA would be the bonding authority and would issue the <br />bonds (probably with bond insurance to insure an excellent <br />rating) and that the City would then do a lease purchase with its <br />own HRA. We are currently exploring legally what implications <br />that has from the new tax bill as to whether those bonds could <br />continue to be tax exempt and secondly will be exploring legally <br />with Popham Haik as to whether this arrangement is legal from <br />their perspective. <br />The issue of facilities assessment will be discussed more fully <br />at the budget hearings and that in conjunction or subsequently <br />thereafter staff will be making a reque:t for expenditure of <br />approximately $9,000.00 for site surveys by the City's Engineer <br />to determine development costs and possible sites. A preliminary <br />financing layout will hopefully be presented Monday night. <br />PROPOSED MOTION - Moved by , seconded by _, to accept staff's <br />information regarding possible financing avenues for a possible <br />City facility. Ayes _, Nays __ <br />