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8. Mortgage Revenue Bonds - Senior Citizen Project, 800 <br />Block of Main Street. ( Ostertag) (408 -01) <br />Report of City Manager 3/28/84 <br />Councilman Claire noted for the record that he had discussed the proposed <br />resolution with City Attorney Schricker and requested drafting of a <br />resolution which would provide for authorization of the bonds subject to <br />certain conditions relating to a financing feasibility study and will <br />offer that resolution in substitution for the one proposed. <br />City Attorney Schricker said the cost of the financing feasibility study <br />will be paid for out of the bond revenue as part of the official <br />statement, pointing out that the City Council will have to have a public <br />hearing on the issuance of bonds. <br />City Manager Smith said that a supplementary City study would cost about <br />$15,000. <br />Discussion followed and Mr. Smith and Mr. Schricker replied to questions <br />and commented regarding the content of the official statement relating to <br />sale of the bonds; whether the City is not just acting as a conduit; <br />whether it would be useful for local bankers to look over the developer's <br />financial plan; the differences between municipal issuance of bonds and <br />private loans; the sophistication of the bond market with regard to <br />understanding the financial statements contained in the official <br />statement; whether a supplementary financial study not required by law <br />might suggest some kind of City liability; the fact that a subsequent <br />report to Council will contain a recommendation to hire financial <br />consultants; and the different responsibilities of the bond counsel and <br />financial consultant. <br />Mr. Schricker said that if Council adopts the proposed resolution or the <br />amended version suggested by Councilman Claire that expenses will be <br />permitted to be paid through bonds. <br />Willy Ostertaq, developer of the subject project, stated he has provided a <br />financial study for HUD and believes the federal government will be the <br />guarantor for the project. Mr. Ostertag asked Council to adopt the <br />inducement resolution. <br />Copies of the proposed resolution as amended were distributed to Council. <br />Director of Finance Tasseff advised that an underwriter will put together <br />the entire package and market the bonds. <br />Title read. M /S: Claire /Biagi <br />Reg. Mtg. <br />4/2/84 <br />Page 6 <br />MINUTE BOOK NO. 44 <br />Page No. 406 <br />