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85 E. SEVENTH PLACE SUITE 100 SAINT PAUL, MN 55101-288? 651-223.3000 FAX: 651-223-3002 SPRINGSTED Public Finance Advisors September 16, 1999 Mr. James E. Norman, City Administrator City of Ramsey 15153 Nowthen Boulevard N.W. Ramsey MN 55303-6197 Dear Jim: At your request, Springsted has been asked to assist with a financing plan to fund the construction of a new fire station for the City of Ramsey. Securing financing through the Economic Development Authority (EDA) of the City of Ramsey would expedite construction of the facility and help the City meet the public safety needs of its residents. The EDA would issue the bonds needed to finance the construction of the facility. Then, the City would lease the facility from the EDA and make annual lease payments that the EDA would use to pay annual debt service costs until the bonds are paid off at which time the City assumes ownership of the facility. We have discussed issuing the bonds needed for this project before the end of the year. In the attached timetable, we have assumed a sale date of Tuesday, November 30, 1999. This sale date will allow the EDA to close the bonds and receive bond proceeds before the end of the year. This date also enables the EDA to avoid any minor disruptions that could occur from Year 2000 computer problems. While major disruptions are not expected, Springsted is safeguarding its clients by completing 1999 sales in early December and resuming sales in early January. Please note that the timetable begins immediately with actions required by the EDA. The reimbursement resolution should be in place before any capital costs, such as the purchase of land, are incurred for the project. Also, with the closing on the purchase of the land scheduled for October 1, the City will want to take the steps needed to obtain title insurance. Having title insurance in place is an important consideration for the rating agencies and bondholders because it provides an assurance that there are no encumbrances upon the land. A copy of the timetable has also been sent to Mary Ippel at Briggs & Morgan. I will get in touch with you early next week to discuss the timetable and discuss any revisions that might be necessary. The timetable shows most EDA meetings occurring on Thursday evenings, which is my understanding based on a conversation I had earlier today with Diana. If the EDA prefers a different schedule, we will revise the timetable accordingly. SAINT PAUL, MN MINNEAPOLIS, MN · MILWAUKEE.XVI OVERLAND PARK, KS , WASHINGTON. DC DESMOINES. IA