Title
Authorizing the City of Saint Paul to enter into an Investment Agreement and Security Agreement with the Friends of the Saint Paul Public Libraries and authorizing an Internal Loan for the Highland and Sun Ray Library Renovation project.
Body
WHEREAS, the City of Saint Paul, ("The City") owns and operates the Highland Park and Sun Ray Library ("Libraries"); and
WHEREAS, identified renovations to the Libraries are budgeted at $13,475,000; and
WHEREAS, the City's Adopted 2012 and 2013 Capital Improvement Budgets include $7,000,000 in Library bonds to help finance renovation projects at the Highland Park and Sun Ray libraries; and
WHEREAS, the planned bond sale of Library Bonds is not until the Spring of 2014; and
WHEREAS, the Friends of the Saint Paul Public Library, ("The Friends") are currently conducting a capital campaign to fundraise for the library renovation to supplement the City's bond funding; and
WHEREAS, the Friends have pledged a total of $6,475,000 from capital campaign fundraising to the project; and
WHEREAS, the Friends have received over $3,800,000 in cash contributions to date ("Current Contribution"); and
WHEREAS, libraries have begun to incur project expenses as a result of contracting with an architect to create plans for the renovations; and
WHEREAS, a portion of the private donations generated by The Friends campaign will pay for those costs; and
WHEREAS, the Friends wish to make their Current Contribution available to the City to assist with expenses incurred before the 2014 Bond Sale; and
WHEREAS, the City and Friends have agreed to accept and deposit The Friends Current Contribution into the City's investment pool, hold the Current Contribution in a segregated account and to apply any and all interest generated from The Friends segregated account towards The Friends total pledged amount of $6,475,000 as stated in the Investment Agreement (Attachment I) which is in substantially final form; and
WHEREAS, the rem...
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