Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
American Academy of Neurology Institute revenue note amendment: 201 Chicago Ave (RCA-2022-00069)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Inspections, Housing & Zoning Committee | February 1, 2022 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Bond | Passage of Resolution authorizing amended documents for Series 2010 Tax-exempt Recovery Zone Facility Revenue Bonds for the American Academy of Neurology Institute, 201 Chicago Ave. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 3 | Downtown East | 201 Chicago Ave, Minneapolis, MN |
Background Analysis
The American Academy of Neurology Institute (AANI) is a Minnesota nonprofit corporation founded in 1948 operating as a medical professional society for neurologists and neuroscientists. In December 2010, the City Council approved the issuance of $15,000,000 of Recovery Zone Revenue Bonds to finance the construction of a 62,400 square foot headquarters office building located at 201 Chicago Avenue.
In 2017, AANI requested an amendment of documents to take advantage of lower interest rates. Amending the original documents triggered a reissuance of bonds under the federal Tax Code and Treasury Regulations.
AANI is requesting again that the City execute documents to amend some of the bond terms, including the interest rate formula and term. This amendment will allow AANI to decrease its overall cost of borrowing freeing up funds that it can direct to its mission-based activities.
As with any revenue bond issuance, the funds came from bond holders purchasing the bonds, not from City funds. As conduit revenue bonds, the borrower is responsible for repayment of the bonds, not the City. The bonds are not secured by the taxing powers of the City or any assets or property of the City.