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HomeMy WebLinkAbout2005-158 Council Resolution• • follows: RESOLUTION NO. 05-158 RESOLUTION CALLING A PUBLIC HEARING REGARDING THE ISSUANCE OF REVENUE NOTES FOR THE BENEFIT OF YMCA OF GREATER SAINT PAUL UNDER MINNESOTA STATUTES, SECTIONS 469.152- 469.165 BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota (the "City ") as Section 1. Recitals. 1.01. Minnesota Statutes, Sections 469.152 to 469.165, as amended (the "Act "), authorizes the City to issue revenue bonds or notes to finance, in whole or in part, the costs of the acquisition, construction, reconstruction, improvement, betterment, or extension of a project constituting any properties, real or personal, used or useful in connection with a revenue producing enterprise, whether or not operated for profit. 1.02. YMCA of Greater Saint Paul, a Minnesota nonprofit corporation (the "Borrower ") has proposed that the City issue tax - exempt revenue Notes or obligations pursuant to the Act in one or more series in the approximate principal amount not to exceed $3,000,000 (the "Notes ") and loan the proceeds of the Notes to the Borrower to finance the construction and equipping of an approximately 37,000 square feet recreational facility (the "Project ") to be constructed on land located at Lot 1, Block 1, The Village No. 3 addition in the City of Lino Lakes, Anoka County, Minnesota. 1.03. Pursuant to Section 469.154, subdivision 4, of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended, prior to undertaking the financing of the Project, the City is required to conduct a public hearing with respect to the proposed financing of the Project. Section 2. Public Hearing and DEED Application. 2.01. The City Council shall meet at 6:30 p.m. on Monday, November 28, 2005, to conduct a public hearing on the Project and issuance of the Notes therefor as requested by the Borrower. 2.02. Pursuant to Section 469.154 of the Act, prior to issuance of the Notes by the City, the Commissioner of the Minnesota Depai tinent of Employment and Economic Development ( "DEED ") must approve the Project on the basis of an application submitted by the City with all required attachments and exhibits (the "DEED Application "). 2.03. Prior to submitting the DEED Application to the Commissioner of DEED requesting approval of the Project, the Council must conduct a public hearing on the proposal to undertake and finance the Project and a notice of such public hearing must be published at least once, not less than fourteen (14) days, nor more than thirty (30) days, prior to the date fixed for the hearing in the official newspaper of the City (and a newspaper of general circulation in the City if the official newspaper is not a newspaper of general circulation in the City). 2.04. The City Administrator is hereby authorized and directed to publish notice of the public hearing, in substantially the form attached hereto as EXHIBIT A to this resolution, in the Quad Community Press, the official newspaper of the City and a newspaper of general circulation in the City. 1 • The notice shall be published at least once, at least fourteen (14) days prior to the date of the public hearing but not more than thirty (30) days prior to the date of the public hearing. 2.05 In accordance with Section 469.154 of the Act, the City Administrator is hereby authorized and directed to cause a draft copy of the DEED Application, together with drafts of all required attachments and exhibits, to be prepared by Kennedy & Graven, Chartered, as bond counsel. The DEED Application, together with all attachments and exhibits, shall be made available for public inspection in the office of the City Administrator during regular business hours of the City. The City Administrator and other officers, employees, attorneys, and agents of the City are hereby authorized to provide DEED with any information needed for this purpose, and the City Administrator is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project. • • Section 3. Official Intent. 3.01. Section 1.150 -2 of the Treasury Regulations, as amended, requires a declaration of intent to reimburse an original expenditure with proceeds of tax - exempt obligations prior to the issuance of such obligations in order to allocate such expenditures to the proceeds of such obligations. 3.02. The City Council hereby declares its preliminary intention to issue the Notes for the Project, subject to compliance with the terms and conditions of the Act and final agreement between the City, the Borrower, and the initial purchaser of the Notes as to the terms and conditions thereof. The Borrower intends to make expenditures for the Project and the City and the Borrower intend to reimburse the Borrower for such expenditures from the proceeds of the Notes. This resolution is intended to constitute a declaration of official intent, for purposes of Section 1.150 -2 of the Treasury Regulations, with respect to certain original expenditures made from any sources other than the proceeds of the Notes, in conjunction with the Project. 3.03. The law firm of Kennedy & Graven, Chartered is authorized to act as bond counsel and to assist in the preparation and review of necessary documents relating to the Project and the Notes to be issued in connection therewith. The City Administrator and other officers, employees, and agents of the City are hereby authorized to assist bond counsel in the preparation of such documents. (The remainder of this page is intentionally left blank.) 2 • • Approved by the City Council of Lino Lakes, Minnesota this 24th day of October, 2005. ATTEST: c Jean Vi eputy City Cler CITY OF LINO LAKES, MINNESOTA 3 • • • EXHIBIT A CITY OF LINO LAKES, MINNESOTA NOTICE OF A PUBLIC HEARING WITH RESPECT TO THE ISSUANCE OF REVENUE NOTES PURSUANT TO MINNESOTA STATUTES, SECTIONS 469.152 TO 469.165, FOR THE BENEFIT OF YMCA OF GREATER SAINT PAUL NOTICE IS HEREBY GIVEN that the City Council of the City of Lino Lakes, Minnesota (the "City ") will conduct a public hearing on Monday, November 28, 2005, at 6:30 p.m. at 600 Town Center Parkway in the City of Lino Lakes, Minnesota, to consider a proposal by YMCA of Greater Saint Paul, a Minnesota nonprofit corporation (the "Borrower "), for the issuance of revenue Notes (the "Notes ") under Minnesota Statutes, Sections 469.152 to 469.165, as amended, to finance a proposed project consisting of the construction and equipping of an approximately 37,000 square -foot recreation facility located at Lot 1, Block 1, The Village No. 3 addition in the City of Lino Lakes, Anoka County, Minnesota. The facilities proposed to be financed will be owned by the Borrower. At the public hearing, the City Council will consider adoption of a resolution giving approval to the issuance of the Notes for the Proj ect. At the public hearing, the City Council will consider adoption of a resolution approving the Project and giving preliminary approval to the issuance of revenue notes to finance the costs of the Project. The aggregate face amount of revenue notes proposed to be issued to finance the Project is presently estimated not to exceed $3,000,000. The revenue notes will be issued by the City and will constitute a limited obligation of the City payable solely from the revenues expressly pledged to the payment thereof, and will not constitute a general or moral obligation of the City and will not be secured by the taxing power of the City or any assets or property of the City except interests in the Project that may be granted to the City in conjunction with this financing. A draft copy of the application to the Minnesota Depai tinent of Employment and Economic Development for approval of the Project is on file with the City and is available for public inspection in the office of the City Administrator during regular business hours. Anyone desiring to be heard during the public hearing will be afforded an opportunity to do so. Dated: [date of publication] LN 140 -091 (JAE) 267126v.1 BY ORDER OF THE CITY COUNCIL By /s/ Gordon Heitke City Administrator City of Lino Lakes, Minnesota A -1 • • • AGENDA ITEM 1C STAFF ORIGINATOR Al Rolek MEETING DATE October 24, 2005 TOPIC Consider Resolution 05 -158 Calling a Public Hearing Regarding the Issuance of Revenue Notes For The Benefit Of YMCA VOTE REQUIRED GROUND. Simple Majority The City of Lino Lakes is involved in a partnership with the YMCA of Greater St. Paul for the construction of a YMCA facility in the Legacy at Woods Edge development. The YMCA has made a request to the City to issue tax exempt financing of a portion of the project cost. Minnesota Statutes, Sections 469.152 to 469.165, authorizes the City to issue tax exempt revenue bonds or notes to finance, in whole or in part, the costs of the acquisition, construction, reconstruction, improvement, betterment, or extension of a project constituting any properties, real or personal, used or useful in connection with a revenue producing enterprise, whether or not operated for profit. The YMCA of Greater Saint Paul has proposed that the City issue tax - exempt revenue Notes or obligations in one or more series in the approximate principal amount not to exceed $3,000,000 and loan the proceeds of the Notes to the Borrower to finance the construction and equipping of an approximately 37,000 square feet recreational facility. The YMCA has made application for such financing in accordance with the City's Tax - Exempt Financing Policy and has submitted the appropriate application fee. The YMCA has requested the waiver of the 1% administrative fee outlined in the policy in consideration of the City -YMCA partnership. Pursuant to Minnesota Statutes, Section 469.154, subdivision 4 and Section 147(f) of the Internal Revenue Code of 1986, as amended, prior to undertaking the financing of the Project, the City is required to conduct a public hearing with respect to the proposed financing of the Project. Resolution 05 -158 calls for the City Council to meet at 6:30 p.m. on Monday, November 28, 2005, to conduct a public hearing on the Project and issuance of the Notes as requested by the YMCA. It is staff's recommendation that the City Council approve Resolution 05 -158 setting a public hearing on the Project and issuance of the Notes requested by the YMCA. 1. Adopt Resolution 05 -158. 2. Refer to Staff for further review. 3. Deny Resolution 05 -158. Option 1 A -3