In response as to why the city would entertain a conduit revenue bond request 
from MPR.  This is it works:

1) It's a conduit revenue bond - meaning that MPR is responsible for paying it 
back regardless of whether the station (WCAL) can pay the bond back itself.  
The bond is guaranteed by the corporation not the city or its residents. It 
gets the rate that the city gets with its Triple A rating, much better than the 
open market.

2) The city is allowed to charge an administrative fee to cover the cost of 
issuance and administration which means for the first year there is a fairly 
large (perhaps 1/2 of 1%) up front fee taken out of the proceeds of the bond 
and for the next 19 years the city receives an administrative fee, which is 
used to pay the cost of an employee, so it actually decreases the staff cost on 
paper.

That's why the city does it and has done it for years.  It helps local 
corporations (in my memory only not for profit) or local projects by 
corporations.

Regards,
Gerry McInerney
Battle Creek
  ----- Original Message ----- 
  From: [EMAIL PROTECTED]<mailto:[EMAIL PROTECTED]> 
  To: [EMAIL PROTECTED]<mailto:[EMAIL PROTECTED]> 
  Cc: [EMAIL PROTECTED]<mailto:[EMAIL PROTECTED]> 
  Sent: Monday, November 29, 2004 10:18 AM
  Subject: RE: [StPaul] Why is the City of Saint Paul involved in this? 
MPR/WCALissue


  No one can fault the quality of the MPR programming we all have access to.
   That is not the point.  It depends I guess if you would rather listen to
  MPR than have the funding to get your street repaired or sidewalks
  repaired.  It seems to me that if the City has money to lend, it should be
  lending it to itself to keep up with the needs of the infrastructure that
  needs attention.  Saint Paul still boasts some of the highest property
  taxes in the state, and although our neighborhoods may be quaint and
  provincial, we have rotten roads.

  I would say that the �ity needs to take care of its own needs, and let MPR
  go to a bank, the interest rates are pretty low right now, so you have to
  know that perhaps the terms the City is offering is unbeatable.

  Pam Ellison
  Como Park
  Saint Paul




  > CRISTY DELACRUZ writes:
  >
  >
  >> 'Just to add a little fuel to the fire, and to play devil's advocate on
  >> behalf of MPR
  > /snip/
  >> I can understand the frustration of Northfield residents trying to save
  >> WCAL, and Saint Paul residents not wanting to fork over so-called
  >> "corporate
  >> welfare" on behalf of a radio station that increasingly seeks corporate
  >> contributions to stay afloat.
  >>
  >> However, I agree with Andy Driscoll's point about MPR's status as the
  >> most
  >> credible news source that exists in the Twin Cities.
  > /snip/
  >> (trust me, listen to MPR just one day a week and
  >> other
  >> people will also think you're as intelligent as you think yourself).
  >>
  >
  >
  > Great post and it advances my sentiments completely.  MPR may have its
  > faults but having lived and traveled elsewhere, I continue to be impressed
  > with its breadth and capabilities.  I've been a subscriber for 20 years
  > and
  > will renew again for the foreseeable future.
  >
  > There's a lot to be said to being able to listen to MPR throughout the
  > state
  > as you travel back and forth.  Unless you have satellite radio, you'll be
  > hard-pressed to find anything of equal stature as you travel across other
  > states.
  >
  >
  >> When I heard a recent news story about a corporate entity (can't
  >> remember
  >> the name so I won't gratuitously denigrate Walmart again for no good
  >> reason,
  >> because I'm sure it was someone else) donating money to a local
  >> Department
  >> of Public Safety (can anyone reference this story for me?),
  >
  > Target is funding at least one (I think it's two) "cold-case"
  > investigators
  > for the Minnesota Department of Public Safety.  I have visions of suspects
  > having a red-circled target emblazoned on their chests.  Governor Pawlenty
  > still has the blue-light special on "no new/increased taxes" mantras.
  >
  >
  > Rick Mons
  >    Tanglewood neighborhood of Shoreview
  >
  >
  >
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