Agenda - Council - 10/26/1999 - Laserfiche WebLink

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I 5AINT FAUL, MINNF~OTA TELEi~HONI~ FACSIMILE I I I I I I I I I I I I I I I I I PROFESSIONAL ASSOCIATION October 8, 1999 Diana Lurid City Finance Officer Ramsey City Hall 15153 Nowthen Boulevard Northwest Ramsey, lvlN 55303-6140 Re: City of Ramsey- I*ire Station Dear Diana: I understand that it is proposed that the City of Ramsey will construct a fire station (the "Fire Station"). The City of Ramsey has the legal authority pursuant to Minnesota Statutes, Section 465.7I to finance the cost of the fro: station pursuant to a Lease with Option to Purchase Agreement (the "Lease") provided that the Lease contain~ an annual nonappropriation clause. ~ annual nonappropriation clause allows the City to nonappropriate, at the end of any year, the remaining lease payments to be paid under the Lease. Because of levy Iimits, it is proposed that the Economic Development Authority of the City of. '. Rm-nsey (the "Economic Development Authority") will issue revenue bonds. The proceeds of the revenue bonds will be used to construct the fire station. The Economic Development Authority will enter into the Lease with Option to Purchase Agreement with the City of Ramsey whereby the City ofl~m.qey will agree to make lease payments in an amount sufficient to pay the revenue bonds and the lease payments will be pledged by the Economic Development Authority to the payment of the revenue bonds. Irt the event that the City of Kamsey exercises its right to nonappropriate the remedy for the holders of the revenue bonds is to cause the Economic Development Authority to terminate the Lease with the City and to take; sell or lease the fn-e station, Any taxes levied by the City for the lease payments would be treated as outside of the levy limits. 1094262.1 MIblNEA.POL~ OFFICE · (DS CENTER · MEMBER -- I.EX MuNDI, A GLOB&I. A.S3OCIATION OF INDEPENDENT LAW FIP..M~ ,qC.'-'0-('77-710. ¥~ J