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explained staff has determined that the EDA~is the authority to proceed with the lease revenue <br />bonding. <br /> <br />Councilmember Strommen stated there are two issues, which are this case in relation to the lease <br />revenue bonds and the issue about ,the City Hal!. What she has to say has no bearing on her <br />opinion about a new facility, and she thinks the inadequacies of the current building are obvious. <br />Her issue is that the Council has not sat down as a group in a work session or an official meeting <br />and stated they will be going forward with thenew!City Hall. Until the Council has that debate <br />she has a problem proceeding with lease revenue bonds because she has to answer to people that <br />have asked when the Council had that final disCus'sion. There have been incremental steps that <br />have been taken, but the Council has not had the filial discussion. <br /> <br />Councihnember Elvig concurred. He noted the question is the procedure and getting in a bind by <br />not moving forward. ' <br /> <br />Member Kiefer suggested the facility be :built with the extra floors. The extra space could be <br />leased out to create an incubator system for businesses in Town Center and could create revenue <br />to pay the bonds. ~ <br /> <br />Councihnember Strommen replied the Council had; that discussion last night and decided against <br />leasing due to the competition with 'buSineSs land the difficulty in administration. <br /> <br />Councihnelnber Elvig explained leasing the Space would also cause problems with the bonding <br />due to the need for taxable and non-taxable bonds2 <br /> <br />Finance Officer Lund explained there is CUrrently inot a lot of competition for selling the bonds. <br />When the timeframe gets into April there will be an influx of the market coming in and the City <br />will end up paying a higher rate. <br /> <br />Assistant City Administrator Nelson indicated the current estimate for the municipal facility is at <br />16.2 million dollars. The second story on the police facility would bring the total to 18 million <br />dollars. She informed the EDA that~ the design.phase of the facility is coming up to the final <br />phase, which is the construction documents; ~ Staff hopes to be prepared to bid the project in <br />April, and if it is not bid at that time they ma~y need to wait another year. The project cannot be <br />bid in August when everyone already has their work lined up, it needs to be bid at a time when <br />there will be good bids. She noted this is a IOugh decision for a community to make so things <br />have been backed up to allow people to be more comfortable with things. <br /> <br />Councilmember Strommen commented she understands the time constraints, but there needs to <br />be a debate with the Council on this. <br /> <br />Chairperson Riley stated it cannot be an emergency for these bonds to be authorized today. <br /> <br />Finance Officer Lund explained the:procedure to issue the lease revenue bonds takes two months <br />from the beginning of the process until the bonds are issued. By not proceeding the interest rate <br /> <br />Economic Development AUthority/January 12, 2005 <br /> Page-6 of 9 <br /> <br /> <br />