Minutes - Council - 12/16/2003 - Laserfiche WebLink

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language pertaining to blighted property did not apply to this situation. It was her understanding that therc was a new draft of the resolution that removes the language that is not relevant. City Administrator Norman presented an amended Resolution for Council consideration. Councihnember Kurak inquired if the City had any security measures in place to assure that the City costs will be covered by the issuance of the bonds. Finance Officer Lund explained that the City does have an escrow with the PACT Charter School and the language in the resolution indicates that the PACT Charter School will pay for the costs incurred by the City. Mi'. Cairns explained that there are many reserves maintained from the bonds for different purposes, which would cover those issues. Councihnember Elvig inquired if the cost of construction ends up being higher than what is cstimatcd and the amount of the bonds does not cover the construction costs where would the funds come to pay for the overage. Mi'. Cairns explained that the PACT Charter School has a guaranteed price maximum for construction so the price of the building cannot increase unless PACT were to come up with additional money to cover those costs. If they were faced with an overage they would have to reducc what they do in the building. Cotmcilmember Elvig replied in regards to Ms. Sitz's statement that the non-taxation issue is somcthing the Council looked at very heavily in the process. There was forgiveness of costs such as land for City Hall as part of adding the PACT Charter School into the Town Center because the devcloper thought it was very important. It does not eliminate any assessments on the property. Councilmember Cook stated that the Town Center is being developed to do more than create tax revenue. They want to be able to offer many things to the community and one of those things is a school. Mr. Cairns noted that they have handled 13 similar transactions in the last four years in Minnesota for Charter School. Half of those projects were renovations of existing properties, but they have also built new buildings several times with the closest school being the Woodbury math and science building. Motion by Councilmember Kurak, seconded by Councilmember Elvig, to adopt the amended Resolution #03-12-334 presented by staff at the meeting authorizing the preliminary issuance of approximately $12 million dollars in revenue bonds to be used for the construction of a PACT Charter School. City Council/December 16, 2003 Page 7 of 33