HomeMy WebLinkAbout2015-032 Council Resolution•
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RESOLUTION NO. 15-32
RESOLUTION APPROVING THE ISSUANCE OF LEASE
REVENUE BONDS, SERIES 2015A, BY THE LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY IN THE
MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $4,885,000
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota
(the `'City") as follows:
1. Background; Authorization.
(a) The City and the Lino Lakes Economic Development Authority (the "Authority")
have determined that it is in the best interests of the City and its residents that the City undertake
the acquisition, construction, and equipping of a new fire hall (the "Facility") to be located in the
City (the "Project").
(b) The Authority has proposed to finance the Project through the issuance and sale
by the Authority of its Lease Revenue Bonds, Series 2015A (the "Bonds"), in the
maximum aggregate principal amount of $4,885,000.
(c) The issuance of the Bonds by the Authority is authorized under Minnesota
Statutes, Section 469.103, and in connection with the issuance and sale of the Bonds, the City
intends to enter into a ground lease between the City, as lessor, and the Authority, as lessee,
regarding the real property on which the Facility is located (the "Ground Lease"), and a
lease -purchase agreement between the Authority, as lessor, and the City, as lessee (the "Lease"),
all pursuant to Minnesota Statutes, Section 465.71, as amended.
(d) Pursuant to the Lease, the City intends to lease the Facility from the Authority
and pay lease payments to the Authority in the amount necessary to pay debt service on the
Bonds, subject to the City's right of non -appropriation in each fiscal year.
2. Approvals.
(a) The City hereby approves the issuance by the Authority of the Bonds based on the
parameters set forth in the resolution entitled "Resolution Providing for the Issuance and Sale of
Lease Revenue Bonds, Series 2015A, in the Maximum Aggregate Principal Amount of $5,400,000,
Subject to Certain Parameters; Fixing Their Form and Specifications; Directing Their Execution and
Delivery; and Providing for Their Payment," approved by the Board of Commissioners of the
Authority on the date hereof. The Bonds are hereby authorized by the City to be issued by
the Authority in the maximum aggregate principal amount of $4,885,000.
(b) The City Council shall meet on April 27, 2015 to consider for approval the forms of
the Lease, the Ground Lease, and any other documents deemed necessary for the issuance of the
Bonds, which documents will be drafted by the City's and the Authority's bond counsel, Kennedy
& Graven, Chartered.
458673v1 JAE LN140-112
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Approved by the City Council of the City of Lino Lakes, Minnesota, this 23rd day of March,
2015.
The motion for adoption of the foregoing resolution was introduced by Council Member
Rafferty and was duly seconded by Council Member Stoes z and upon a vote being
taken thereon, the following voted in favor thereof:
Rafferty, Stoesz, Roeser, Kusterman,
TheroliTowing voted against same:
none
Jeff Reinert, Mayor
Attest:
City Clerk
458673v1 JAL LN140-112
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STAFF ORIGINATOR:
MEETING DATE:
TOPIC:
VOTE REQUIRED:
INTRODUCTION
CITY COUNCIL
AGENDA ITEM 2C
Al Rolek
March 23, 2015
Consider Resolution No. 15-32 Approving the Issuance of Lease
Revenue Bonds, Series 2015A, by the Lino Lakes Economic
Development Authority in the Maximum Aggregate Principal
Amount of $4,885,000
Simple Majority
The City of Lino Lakes has entered into a contract to construct a fire station building at the
corner of Birch Street and Centerville Road. The construction cost of the building will need to
be financed through the issuance of debt. The City has retained Springsted, Inc. to advise on
the type and amount of debt to be issued for this project.
BACKGROUND
The City of Lino Lakes is in the process of organizing a fire department to provide fire
protection in the City. Fire services are scheduled to begin in January, 2016. It has been
determined that a second fire station will be needed to adequately cover the service area. The
City Council has provided for the design of a new fire station and has advertised for and
awarded a bid to Jorgenson Construction to build the new facility. The City's fiscal advisor,
Springsted, Inc., has recommended the issuance of Lease Revenue bonds through the City's
Economic Development Authority (EDA) to finance the cost of construction. Earlier this
evening the EDA approved a resolution providing for the issuance of Lease Revenue bonds for
this project. Terri Heaton of Springsted, Inc. will be present to explain the process for issuing
the bonds and to answer any questions that the City Council may have relative to the
recommended financing. Approval of Resolution 15-32 approves the issuance and sale of
Lease Revenue Bonds, Series 2015A, by the EDA in the maximum aggregate principal amount
of $4,885,000, subject to certain parameters.
RECOMMENDATION
Staff is recommending approval of Resolution No. 15-32.
ATTACHMENTS
Resolution 15-32
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Extract of Minutes of Meeting
of the City Council of the City of
Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Lino
Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Monday, March 23, 2015,
commencing at 6:30 P.M.
The following members of the Council were present: Roeser, Rafferty, Kustennan, Stoesz, and Reinert
and the following were absent: None
458673v1 JAE LN140-112
• STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
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I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes,
Minnesota (the "City"), hereby certify that I have carefully compared the attached and foregoing extract
of minutes of a regular meeting of the City Council of the City held on Monday, March 23, 2015, with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar
as they relate to the issuance and sale by the Lino Lakes Economic Development Authority (the
"Authority") of the Authority's Lease Revenue Bonds, Series 2015A, in the maximum aggregate
principal amount of $5,600,000.
WITNESS My hand as City Clerk and the corporate seal of the City this 24th day of
March, 2015.
(SEAL)
458673v1 JAELN140-112
City Clerk
City of Lino Lakes, Minnesota