HomeMy WebLinkAbout06-185 - ADMIN Resolution - City Council - 2006/12/04•
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RESOLUTION NO. 06-185
RESOLUTION APPROVING
THE FINANCING APPROACH FOR THE WIRELESS PROJECT
WHEREAS, the City Council approved bids for a municipal wireless project on
November 6, 2006; and
WHEREAS, the most cost effective method of financing this project is through internal
loans from the Development Fund; and
WHEREAS, the Economic Development Authority of the City of St. Louis Park
authorized such a loans,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St Louis
Park, Minnesota, that:
1. The Wireless Enterprise fund is authonzed to borrow an amount not to exceed $3,300,000
from the Development Fund.
2. Two loans will be made — the first with a twenty (20) year term for the cost of fiber optic
extensions and a second for all other wireless infrastructure costs with a five (5) year
repayment term
3. The interest rate for these loans will be set at 5% per annum.
4. The monies will be advanced as required by the build out process and interest will begin to
accrue at the time of disbursement.
5. Repayment will begin in 2008 one year after acceptance of completed system by the city
from ARINC, the pnmary vendor.
These loans may be prepaid by the Wireless Enterpnse Fund at any time in any amount up to
full balance due without penalty.
Revi
:rtor Administration:
X411
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City Man_er
Attest:
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City Clerk
Adopted by the ty Council December 4, 2006
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Mayo