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-44- <br /> <br />Case #4: <br /> <br />Consider Resolution Calling for Public Hearing on Issuance of Revenue <br />Bonds to Finance Charter School <br /> <br />Finance Officer Lund stated that this case relates to the PACT Charter School which Council has <br />been informed of before. They plan to locate in the Town Center. PACT has made an initial <br />request of the City to issue a Tax-Exempt Bond to finance the charter school. The process <br />requires the issuance of a revenue bond which has been performed in the past for industrial <br />projects. The City would not be liable for payment; it is a pass-through bonding process. To <br />initiate the process, a public hearing would have to be held. Ms. Lund added that the PACT <br />School may get other financing and then the bond will not be necessary. If that. happens, the <br />public hearing would not be necessary either. The action in this case would be to simply <br />authorize, a public hearing, if necessary: <br /> <br />Councihnernber Zimmerman stated he would not be opposed to recommending calling for a <br />public heahng, however, he would have some questions relating to the bond if it goes that far. <br /> <br />Ms. Lurid reiterated that the City of Ramsey's .name would be on the bond but the City would not <br />be liable. <br /> <br />Councih-nember Strommen stated that she, too, would have questions if it gets to that point. <br /> <br />Councilmember Elvig stated that if we move forward, he has concerns about the City being <br />involved and the PACT School being in the Town Center. He would like to see proof of other <br />uses for that building in case the School closed. This will be in the prime downtown area. It <br />should be stipulated that if the school closes, it goes back into the City's tax base. <br /> <br />Councilmember Zimmerman echoed that concern too. He felt that a lot of information was <br />needed prior to the public hearing. <br /> <br />Ms. Lund pointed out that if the bonding is not needed, this will not come to a public hearing. <br /> <br />Councilmember Strolrunen suggested that Council needs to have a conversation about these <br />issues prior to the public hearing or any further action on this school. <br /> <br />Motion by Councilmember Strommen and seconded by Councilmember Zimmerman to <br />recommend that City Council adopt the resolution calling for a public hearing on issuance of <br />revenue bonds to finance Charter School facilities, and authorizing the publication of a notice of <br />the hearing. <br /> <br />Motion carried. Voting Yes: Councilmembers Elvig, Strommen and Zimmerman. Voting No: <br />None. <br /> <br />Motion by Councilmember Strommen and seconded by Councilmember Zimmerman to direct: <br />staff to put the PACT Charter School on a work session agenda to discuss some other issues <br />surrounding ownership of building, obligation with the PACT, etc. <br /> <br />Finance Committee - May 13, 2003 <br /> Page 4 of 7 <br /> <br /> <br />