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CASE <br /> <br />REVIEW OPPORTUNITIES FOR FINANCING THE <br />CONSTRUCTION OF A PUBLIC WORKS GARAGE AND/OR <br />POLICE DEPARTMENT <br /> By: David R. Hartley <br /> <br />Background: <br /> <br />As the City Council is aware, the discussion or need for a Public Works facility and/or a Police <br />Department has been discussed in the past. Recently, a letter was received from Steven Bubul of <br />Holmes & Graven announcing an opinion which was received from the Minnesota Department of <br />Revenue. That opinion seems to clear the way for the use of an Economic Development Authority <br />(EDA) as a means to finance a Public Works facility in Ramsey. <br /> <br />The following is a scenario of how this approach might work. <br /> <br />The City of Ramsey establishes an Economic Development Authority comprised of the City <br />Council members, the Chairman of the Planning and Zoning Commission and three other <br />members (presumably three individuals highly qualified to deal in matters of economic <br />development ). <br /> <br />The Economic Development Authority authorizes the sale of bonds for the purpose of <br />constructing a Public Works and/or Police Department facility. <br /> <br />The bonds authorized by the EDA are secured by an installment purchase agreement from <br />the City of Ramsey. An installment purchase agreement is a debt which may legally exceed <br />the levy limits imposed within the State of Minnesota. <br /> <br />The City of Ramsey levies a tax to collect revenues annually to service the installment <br />purchase agreement and indirectly, the bond sold by the EDA. <br /> <br />The only question raised by Mr. Bubul is whether the bonds authorized by the EDA would be <br />marketable or not. In discussions with Mr. Thistle of Springsted, Inc., I have learned that other <br />communities have in fact sold bonds structured in a similar manner which have been received by <br />the market favorably. Although, as with any sale of bonds, the market acceptance can only be <br />measured at the time of sale. <br /> <br />If the City Council is interested in pursuing this means of financing, then it is my recommendation <br />that a committee be assigned to determining the recommended composition of the Economic <br />Development Authority, defining its goals and possibly recommending an initial project. <br /> <br />Council Action: <br /> <br />Discussion/Motion to establish a committee to review the establishment of an Economic <br />Development Authority. <br /> <br />Review Checklist: <br /> <br />City Administrator <br />Planning and Zoning Commission <br />Economic Development Commission <br /> <br />CC: 10/23/90 <br /> <br /> <br />