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Councihnember Elvig commented the EDA is trying to get out different types of loan <br />opportunities to help businesses grow in the City. He asked if the bonds can only be used for <br />real estate. <br /> <br />Attorney lppel replied the bonds can be used for manufacturing facilities and equipment, <br /> <br />Mayor Gamec requested clarification that the bonds do not go against the City's debt. <br /> <br />Attorney Ippel replied that is correct. She explained the City is prohibited from using any City <br />funds to pay the bonds. The bonds are payable solely from the credit of the borrower, and in this <br />case there is an additional letter of credit securing the bonds. The City is merely issuing the <br />bonds so the user has the benefit of tax exempt interest. <br /> <br />Cotmcihncmber Elvig inquired who the lender is, outlined on page 179 under Default of the <br />Lender. <br /> <br />Ms. Ippel replied the bonds are being purchased by Northland Securities and being sold to other <br />industrial investors or financial institutions. Northland Securities markets the bonds and U.S. <br />Bank is the trustee that acts as the paying agent and pays the bond holders. In a failure to pay <br />there would be a draw on the letter of credit. <br /> <br />Consultant Mulrooney stated the lead for this company was developed by Mayor Gamec, and <br />this company will occupy a building that has been vacant for several years. <br /> <br />Citizen Input <br /> <br />'['here was none. <br /> <br />Motion by Councilmember Cook, seconded by Councilmember Elvig, to close the public <br />hearing. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Cook, Elvig, Olson, Pearson, and <br />Strommen. Voting No: None. Absent: CouncilmemberJeffrey. <br /> <br />Thc public hearing was closed at 7:32 p.m. <br /> <br />Council Business <br /> <br />Mayor Gamec called the regular City Council meeting back to order at 7:32 p.m. <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Strommen, to authorize the <br />approval of the loan agreement between the City of Ramsey and Kilkenny, LLC with item no. 6 <br />amcndcd to the amount of $70,000, to adopt resolution #05-06-188 authorizing the issuance and <br />sale of $70,000 Industrial Development Revenue Note of 2005, and to adopt resolution #05-06- <br />189 authorizing the issuance and sale of $3,810,000 Variable Rate Demand Industrial <br />Dcvclopmcnt Revenue bonds. <br /> <br />City Council / June 28, 2005 <br /> Page 9 of 24 <br /> <br /> <br />