12-27-84 agenda
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
'9' ?,
Council Letter No.
The Honorable Mayor
and
Members of the City Council
City of Richfield
Agenda December 27, 1984
Subject: Financing the Commercial Component for the Market
Plaza Development Project
Dear Council Members:
I
On Tuesday, December 18, 1984, the City Manager received a
telephone call from E. J. Plesko concerning a change in
financing for the commercial component of the Market Plaza
Development Project.
The proposed change in financing is an improvement and will
strengthen the project's chances of succeeding.
Mr. Plesko stated that Piper-Jaffray of Minneapolis,
Minnesota will replace Prudential-Bache as the underwriter for
the $5.5 million in Commercial Development Revenue Bonds.
Also, Mr. Plesko said that First National of St. Paul will
provide the credit enhancement to the bond issue.
Piper-Jaffray is already working on a number of bond issues
that total approximately $140 million and they have agreed to.
add the Market Plaza Commercial Component financing to their
total portfolio that they will sell shortly.
The big advantage in changing from Prudential-Bache with
enhancement from First Federal is that we will be going from a
situation where the bonds are being parked for up to a period of
six months to an actual sale in the very near future. This
means that Plesko has found his permanent financing for the
commercial component. In order to accomplish this change in
financing, it will be necessary for the City Council to hold a
special city council meeting on Thursday, December 27, 1984, at
5:30 p.m., to first rescind the resolution that was passed at
the meeting of December 17, 1984, which authorized the issuance
and sale of $5.5 million in Commercial Development Revenue Bonds
for parking at First Federal and then pass a new resolution
placing the issue with Piper-Jaffray and First National of St.
Paul.
I - . -I
Council Letter No. 454 -2- December 27, 1984
Mr. Plesko indicated that he may still work with First
Federal on the housing component bond issue or he may stay with
Piper-Jaffray for that issue. He was not certain, but the
matter dealing with the housing bonds can wait until January of
1985.
R ctful y itted,
ohn G. C, t ight
City Manager
JGC : sb
cc: Housing & Redevelopment Authority Commissioners
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LEGAL NOTICE
(REVISED)
NOTICE OF SPECIAL CITY COUNCIL MEETING
CITY OF RICHFIELD
DECEMBER 27, 1984
NOTICE IS HEREBY GIVEN that the City Council of the City of Richfield
will hold a special meeting on Thursday, December 27, 1984 in the Council
Chambers of the City Hall, 6700 Portlnd Avenue, at 5:30 P.M. to consider
a resolution authorizing the issuance and sale of $5,500,000 Commercial
- -- Development-Revenue Bonds for Market Plaza Commercial Joint Venture, a
Minnesota General Partnership, and rescinding Resolution No. 6979.
A further purpose of the meeting is to consider the granting of.a waiver
to the City's subdivision requirements for the sale of part of Government
Lot 2 in the Market Plaza Redevelopment Block.
Also, any such other matters that may come before the meeting.
John G. Cartwright
CITY MANAGER
Dated: December 20, 1984
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