Agenda - Economic Development Authority - 01/12/2005

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Case # 3 Lease Revenue Bonds for Municipal Center By: Sean M. Sullivan, Economic Development/TIF Specialist Diana Lund, Finance Officer Background: For the past several years, the Ramsey City Council has been looking .at the option of constructing a new Municipal Center (City Hall and Police Station) in the Ramsey Town Center. In the Spring of 2004, the City Council authoriZed the creation of schematic plans for a new Municipal Center. At this point the schematic design is completed. City Council has determined that the best way to finance a new Municipal Center is to issue lease revenue bonds. The EDA has experience in financing large projects like the Municipal Center. Fire Station No. 1 was financed through the EDA using the lease revenue bond funding mechanism. Staff needs a resolution from the EDA to authorize lease revenue bonds for the construction of the Municipal Center. : Observations: There are three primary ways to finance this type of project and they are lease revenue bonds, general obligation bonds and CIP bonds. Of the three types, of financing the lease revenue' strategy is the one that does not require a referendum. General obligation bonds require the passing of a referendum. The CIP bonds are: subject to reverse referendum and the financing can be revoked. The suggested lease revenue method has been recommended by the City Council. Attached is a schedule showing the Redevelopment Plan schedule and it is imperative that the EDA adopt the Resolution Initiating Process for Adoption of Redevelopment Plan and Reimbursement Resolution at this meeting to keep with the timeline recommended by City Council. Recommendation: Staff recommendation is to adopt ResolutiOn # __ and Resolution # lease revenue bonds for the construction of the Municipal center. and to proceed with the Review Checklist: City Administrator Community Development Director Associate Planner EDA: 01.12.05 1437103vi 4