10-29-2018 Council Packet - Laserfiche WebLink

Home Browse Search

540461v2 SEL VA265-10 CITY OF LITTLE CANADA, MINNESOTA RESOLUTION NO. _____ RESOLUTION CALLING A PUBLIC HEARING FOR THE PURPOSE OF PROVIDING HOST APPROVAL FOR THE ISSUANCE OF CHARTER SCHOOL LEASE REVENUE BONDS BY THE CITY OF VADNAIS HEIGHTS BE IT RESOLVED by the City Council of the City of Little Canada, Minnesota (the “City”) as follows: Section 1. Recitals. 1.01. Pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the “Act”), the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance or refinance revenue-producing enterprises located within the City, whether or not operated for profit. 1.02. Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the governing body of the city in which the property is located consents by resolution to the issuance of such obligations. 1.03. AFSA Building Company, a Minnesota nonprofit corporation (the “Company”), has proposed that the City approve the issuance by the City of Vadnais Heights, Minnesota (the “City of Vadnais Heights”) of one or more series of revenue obligations, as taxable or tax-exempt (the “Bonds”), in the maximum aggregate principal amount of $13,000,000. The proceeds derived from the sale of the Bonds are proposed to be loaned to the Company and applied by the Company to: (i) redeem and prepay certain outstanding bonds issued by the City of Vadnais Heights in 2004 to finance the acquisition, construction, and equipping of an approximately 45,000 square foot grade nine through twelve education facility located in the City of Vadnais Heights (the “Series 2004 Project”); (ii) finance the acquisition, renovation, and equipping of an approximately 30,000 square foot existing building located at 2925 County Drive in the City for use as a public charter school for students in pre-kindergarten through eighth grade (the “Series 2018 Project”); (iii) fund a debt service reserve fund to secure the timely payment of the Bonds; (iv) pay a portion of the interest on the Bonds; and (v) pay a portion of the costs of issuing the Bonds. The Series 2004 Project and the Series 2018 Project (collectively, the “Project”) will be owned by the Company and leased to and operated by AFSA High School, doing business as Academy for Sciences & Agriculture (formerly The Agricultural and Food Sciences Academy), a Minnesota nonprofit corporation (the “School”). 1.04. Prior to the issuance of the Bonds by the City of Vadnais Heights, the City Council of the City (the “City Council”) is required to (i) conduct a public hearing in accordance with the requirements of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”) with respect to the proposal to issue the Bonds; and (ii) approve the issuance of the Bonds by the City of Vadnais Heights to finance, among other things, the Series 2018 Project.