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HomeMy WebLinkAbout01. Revenue Bond Financing/UWO Foundation Alumni Welcome & Conference Ctr Project CITY HALL 215 Church Avenue P.O.Box 1130 Oshkosh,Wisconsin Ci 54903-1130 ty of Oshkosh O..IHKOJH TO: Honorable Mayor and Members of the Common Council FROM: Lynn A. Lorenson, City Attorney DATE: December 6, 2012 RE: Public Hearing Regarding Revenue Bond Financing to benefit the University of Wisconsin Oshkosh Foundation, Inc. (Alumni Welcome and Conference Center Project) At its November 13, 2012 meeting the Common Council passed an initial resolution declaring its intent to issue revenue bond financing to assist with the completion of an alumni welcome and conference center to be located at 625 Pearl Avenue in the City of Oshkosh as requested by the University of Wisconsin Oshkosh Foundation, Inc. and/or the UW Oshkosh Foundation Alumni Welcome and Conference Center. The University Foundation is requesting that the Council hold the public hearing during the December 11, 2012 Council meeting in anticipation of bringing forward a Final Resolution authorizing the issuance of the bonds at the Council's January 8, 2013 meeting. Federal and state laws allow municipalities to issue municipal bonds as a conduit issuer for certain purposes in compliance with all of the law's requirements. The issuance of these bonds provides a benefit to the underlying organization by providing the organization funding at a significantly reduced interest rate compared to other types of financing. The bonds are municipal bonds but are not general obligations of the City and do not count against the City's borrowing capacity. There is no anticipated fiscal impact to the City from the proposed borrowing. The City of Oshkosh would not be liable for payment of principal or interest on the bonds and would not have any ongoing responsibilities for monitoring or reporting with regard to the bonds or the proposed projects. The Public Hearing is a requirement of the Federal Internal Revenue Code and provides an opportunity for residents of the municipality issuing the bonds to be heard regarding the proposed project and method of financing. Res ectfully Submitted, Approved: Lynn k Lorenson Mark A. Rohloff City Attorney City Manager