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• � - <br /> MILLIKIN UNIVERSITY <br /> D E C A T U R , 1 L L I N O I S <br /> 6 2 5 2 2 <br /> May 21, 1990 <br /> The Honorable Gary Anderson <br /> Mayor of Dec.atur <br /> #1 Civic Center Plaza <br /> Decatur, I1 62523 <br /> Dear Mayor Ariderson: <br /> This letter is to formally request that the City of Decatur consider the <br /> adoption of an ordinance prepared by Cnapman & Cutler. The ordinance basically <br /> indicates that the City of Deaatur would be willing to issue tax exempt bonds <br /> on behalf of Millikin University, if the Board of Tna.stees decides at a later <br /> date to finance the cost of two dormitories at a price presently estimated not <br /> to exceed $2,250,000. We have not made a final decision to use tax exempt bonds <br /> at this time, since it appears likely that the construction will not be finished <br /> until the end of 1990 or early in 1991. We will need to review the interest rate <br /> structure at that time and also other alternatives for fir�ancing this project. <br /> It is our intent to finance the interim construction with University funds rather <br /> than borrowed funds. <br /> Due to a proposed change in the Internal Revenue Service code, it was <br /> rec�miexxled by Chapman & Cutler that we get a "letter of i.nducemexit" in place <br /> so that costs incurred in the near future could be included in the bond issue. <br /> Costs incurred before a "lettex of inducement" is in place could not be included <br /> in the bond issue. <br /> In discussion of this material with an attorney at Chapman & Cutler, it does <br /> appear that this bond issue could effect the city's total volwne cap. It is my <br /> understandirig that there is a $10,000,000 limit in the case of small issues <br /> exemptions an3 csar issue wrould count against that limitation. I would also call <br /> to your attention that it is quite likely that it will be calendar year 1991 <br /> before we will be ready to proc,eed with suc.h a bond issue. <br /> We sincerely appreciate the willirigness of the City of Decatur to consider <br /> this possibility. <br /> Sincerely, <br /> �-�-�=��-�.�,_ <br /> �``Kenneth Brc7wn <br /> Vice President for <br /> Business Affairs <br /> cc: Mr. James Bacon -- �- <br /> Mr. John Couter <br />