4.5. SR 07-06-1998~ity of
iver
MEMORANDUM
Item # 6.5.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat K1 ae rs, Ci ty A d~j~/~,~itor
July 6, 1998
Guardian Angels Request
Assistant City Administrator Lori Johnson and I have met with
representatives of Guardian Angels regarding a request from them to have
the city issue revenue bonds for their upcoming project on Joplin Avenue and
to refinance some previous projects. The city has been the bonding agency
for other entities in the past, including having the HRA issue bonds for the
county jail a number of years ago. Documents are currently being reviewed
by our bond consultant. There can not be any liability on the city's part for
participating in this bonding activity, and as long as there is no net loss by
way of a higher interest rate on city bonds, then staff can support this
request. The higher interest rate on city bonds is an issue as this proposal
will push the city over the $10 million mark in 1998. In this regard,
Guardian Angels has committed to "make the city whole" as once we exceed
$10 million in bonds, we generally have a higher interest rate on local bond
issues. The details on this interest rate arrangement are being worked out
by Lori and our bond consultant with Guardian Angels.
Action on July 6, 1998, is to call a public hearing for July 27, 1998, to
consider the issuance of the bonds. Representatives of Guardian Angels will
be in attendance at this meeting, as will Assistant City Administrator Lori
Johnson, to discuss this proposal in further detail.
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