HomeMy WebLinkAbout14-13 BondsCITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
July 23, 2014
No. 14-13
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RESOLUTION AUTHORIZING THE EXECUTION OF AN ESCROW
AGREEMENT IN CONNECTION WITH THE ADVANCE REFUNDING
OF THE CITY'S LEASE REVENUE BONDS (KALEIDOSCOPE CHARTER
SCHOOL PROJECT) SERIES 2007A
WHEREAS, at the request of KCS Building Company (the "Company"), the City of
Falcon Heights, Minnesota (the "City") issued its Lease Revenue Bonds (Kaleidoscope Charter
School Project) Series 2007A (the "Series A Bonds") in an aggregate amount not to exceed
58,110,000 and lent the proceeds thereof to the Company, in order to finance the acquisition,
renovation, and equipping of an approximately 40,000 square foot public elementary
schoolhouse, to be located at Kalland Avenue west of County Road 19 in the City of Otsego,
Minnesota ("Otsego") (the "Project") to be owned by the Company and leased to Kaleidoscope
Charter School, a Minnesota nonprofit corporation and an organization described under Section
501(c)(3) of the Internal Revenue Code of 1986, as amended (the "School");
WHEREAS, the Company has requested of the City and of Otsego that the Series A
Bonds be advance refunded on November 1, 2015 using proceeds of lease revenue bonds to be
issued by Otsego (the "Otsego Bonds") and amounts on deposit under the Indenture of Trust
with respect to the Series A Bonds (the "Falcon Heights Indenture");
WHEREAS, in order to provide for the redemption of the Series A Bonds on November
1, 2015, it is necessary for the City to enter into an Escrow Agreement with the Company and
Wells Fargo Bank, National Association, as escrow agent (the "Escrow Agent"), (the "Escrow
Agreement") and a form of the Escrow Agreement has been submitted to the City; and.
WHEREAS, upon the issuance of the Otsego Bonds and the deposit of amounts pursuant
to the Escrow Agreement, the Series A Bonds shall be defeased and the Falcon Heights
Indenture shall be discharged by the trustee for the Series A Bonds.
NOW, THEREFORE, the City Council of the City of Falcon Heights, Minnesota
hereby resolves:
1. Consent to Issuance of Otsego Bonds. In accordance with Minnesota Statutes,
Section 469.155, subd. 12, the City hereby consents to the issuance of the Otsego Bonds by
Otsego for the purpose of refunding the Series A Bonds.
2. Approval and Execution of Escrow Agreement. The form of the Escrow
Agreement is approved. The Escrow Agreement shall be executed in the name and on behalf of
the City by the Mayor and the City Administrator, or executed or attested by other officers of the
City, in substantially the form on file, but with all such changes therein, not inconsistent with the
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Act or other law, as may be approved by the officers executing the same, which approval shall be
conclusively evidenced by the execution thereof; and then shall be delivered to the Escrow
Agent. Modifications to the form of the Escrow Agreement to which the City is not a party may
be made at the discretion of the parties thereto.
3. Certificates. etc. The Mayor, City Administrator and other officers of the City are
authorized and directed to prepare and famish to bond counsel and the Escrow Agent, certified
copies of all proceedings and records of the City relating to the Series A Bonds and the Escrow
Agreement, and such other affidavits and certificates as may be required to show the facts
appearing from the books and records in the officers custody and control or as otherwise known
to them; and all such certified copies, certificates and affidavits, including any heretofore
furnished, shall constitute representations of the City as to the truth of all statements contained
therein.
Adopted by the City Council of the City of Falcon Heights, Minnesota this 23'
day of July, 2014.
Movedby: Lp�t� Approvedby:
P ter Lindstrom
Mayor
July 23, 2014
LINDSTROM hi Favor Attested by:_ J
GOSLINE Bart Fischer
HARRIS Against City Administrator
LONG July 23, 2014
MERCER -TAYLOR
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