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5. APPROVE AGENDA <br />Motion by Councilmember Backous, seconded by Mayor Ramsey to approve the agenda as <br />presented. <br />Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Backous, Elvig, McGlone, <br />Strommen, Tossey, and Wise. Voting No: None. <br />6. PUBLIC HEARING <br />None. <br />7. COUNCIL BUSINESS <br />7.01: Authorization of and Adopt Resolution #12- 04 -XXX Accepting Proposal on Sale of <br />$7,420,000 Taxable General Obligation Tax Increment Bonds, Series 2012B, <br />Providing for their Issuance, Pledging Tax Increments for the Security Thereof and <br />Authorizing Execution of Pledge Agreement <br />Finance Officer Lund reviewed the staff report. <br />Stacie Kvilvang, Ehlers & Associates, presented the rationale used by Standard & Poors to <br />uphold Ramsey's AAA rating. Ms. Kvilvang advised that extremely good rates were received <br />and recommended awarding to Northland Securities, the low bidder, in the amount of $7.320 <br />million at 2.4568 %. <br />Councilmember Backous asked the record to reflect that his affirmative vote was to approve the <br />funding mechanism but he had not changed mind about not supporting this project. <br />Finance Officer Lund indicated the bonds will be backed by rents and tax increment generated <br />by the project. <br />Ms. Kvilvang advised the development agreement requires Flaherty & Collins to pay 100% for <br />bond costs and will be charged a higher interest than the City will pay on the bonds. It is hoped <br />that once constructed, permanent financing will be obtained and the bonds will be paid off. <br />Motion by Mayor Ramsey, seconded by Councilmember Wise, to adopt Resolution 412 -04 -054 <br />Accepting Proposal on Sale of $7,320,000 Taxable General Obligation Tax Increment Bonds, <br />Series 2012B, Providing for their Issuance, Pledging Tax Increments for the Security Thereof <br />and Authorizing Execution of Pledge Agreement. <br />Victor Ruzynski, 17129 Potassium Street NW, asked if there will be prevailing wage with this <br />project. <br />City Engineer Himmer stated this involves a private contractor. <br />City Council / April 24, 2012 <br />Page 4 of 8 <br />