BE IT RESOLVED, that the proper city officials are authorized to execute and implement an agreement, substantially the same as that on file with the clerk as Public Document No. __________, between the city and Saint Mary’s Duluth Clinic Health System for the use of at least 200 parking spaces; payment of amounts due related to construction, consent to refinancing bonds.
BE IT FURTHER RESOLVED, that the city gives consent to the refinancing of 2004 series bonds and accepts $1,604,557 as present value of IDB fees due it thereon, to be deposited in Parking Fund 505, debt service account, medical district parking ramp.
ADMIN/ATTY BFB:nmj 2/5/2008
STATEMENT OF PURPOSE: This resolution authorizes a parking agreement with SMDC, which agreement also settles various construction cost changes and allows SMDC to refinance some of its related debt.
The parking agreement is for at least 200 employee parking passes and cooperation in promoting use of the ramp by SMDC customers. The base rate is $65/month per pass, with an annual increase of three percent. SMDC will also pay $229,447 for construction changes it requested, less $48,559 cost of fan coil units it supplied.
SMDC wants to refinance outstanding bonds in order to get a more favorable rate. The city currently receives a fee on these bonds. In exchange for agreement to the refinancing, the city will receive the present value of its fees, which is $1,604,557.