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STEPHEN J. BUBUL <br /> Atlorncy at Law <br /> <br />Direct Dial (612) 337-9228 <br /> <br />September 27, 1990 <br /> <br /> HOLMES & GRAVEN <br />CHARTERED <br />470 Pillsbury Center, Minneapolis. Minnesota 55402 <br />(612) 337-9300 <br /> <br /> R'Er';Et rED <br /> <br />Mr. David Hartley <br />City of Ramsey <br />15153 Nowthen Boulevard <br />Ramsey, MN 55303 <br /> <br />Re: Lease Purchase Financing for Garage <br /> <br />Dear Dave: <br /> <br />We have received an opinion from the Minnesota Department of <br />Revenue that would permit the City to finance construction of a <br />public works garage using a lease purchase structure with an EDA. <br />Copies of the correspondence on this matter are enclosed. <br /> <br />This means that the City could create an EDA which would <br />construct the garage. The EDA would issue revenue bonds, secured <br />by payments from the City under a lease purchase agreement. That <br />agreement, however, must contain a clause giving the City the <br />right to terminate the lease at the end of any fiscal year during <br />its term. Taxes levied by the City to make payments under the <br />lease will not be included in the City's levy limit, and' no <br />election is required to enter the agreement. Upon satisfaction <br />of the lease, the City will own the garage. <br /> <br />The only question is the marketability of EDA revenue bonds <br />secured only by a terminable lease purchase contract. I assume <br />Bob Thistle will be able to determine the feasibility of such a <br />bond issue. <br /> <br />If you decide to proceed with this project, I would be happy to <br />help you establish an EDA and provide any information your <br />Council might need. Regarding the lease purchase agreement and <br /> <br /> <br />