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HomeMy WebLinkAbout2015-051 Council Resolution• • • CITY OF LINO LAKES, MINNESOTA RESOLUTION NO. 15-51 RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A GROUND LEASE, LEASE -PURCHASE AGREEMENT, AND RELATED DOCUMENTS BE IT RESOLVED By the City Council (the "City Council") of the City of Lino Lakes, Anoka County, Minnesota (the "City") as follows: 1. Background; Authorizations. (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 on certain land (the "Site") 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 2015 (City of Lino Lakes, Minnesota Lease Obligation) (the "Bonds"), and on March 23, 2015, the City Council approved the issuance of the Bonds by the Authority. (c) Forms of the following lease documents have been presented before the City Council: (i) a Ground Lease, to be dated on or after June 1, 2015 (the "Ground Lease"), between the City, as lessor, and the Authority, as lessee, pursuant to which the Authority will lease the Site from the City; and (ii) a Lease -Purchase Agreement, to be dated on or after June 1, 2015 (the "Lease"), between the Authority, as lessor, and the City, as lessee, pursuant to which the City will lease the Site and the Facility to be constructed thereon from the Authority. (d) An Official Statement (the "Official Statement") has been prepared by Springsted Incorporated with respect to the Bonds and has been presented before the City Council, 2. Payment of Lease Payments. The City will pay to the registrar for the Bonds, promptly when due, all of the lease payments due under the Lease (the "Lease Payments") and other amounts required by the Lease. To provide moneys to make such payments, the City will include in its annual budget, for each fiscal year (the "Fiscal Year") during the term of the Lease, commencing with the Fiscal Year ending on December 31, 2016, moneys sufficient to pay and for the purpose of paying all Lease Payments, a reasonable estimate of additional Lease Payments, and other amounts payable under the Lease. The City will approve its annual budget no less than three months prior to any Lease Payment paid with a tax levy or other moneys included in that annual budget. The agreement of the City in this section is subject to the City's right to terminate the Lease at the end of any Fiscal Year, as set forth in Section 5.6 of the Lease. 3. Continuing Disclosure. (a) "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate to be executed by the Mayor and City Administrator of the City and dated as of the date of issuance of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. 460729v1 JAE LN140-112 • • (b) The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate substantially in the form on file with the City. Notwithstanding any other provision of this resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 4. Official Statement. The Official Statement, as completed and supplemented, and its distribution to potential purchasers of the Bonds, is hereby approved. The Mayor and City Administrator are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5. Authorization of Documents. (a) The Mayor and the City Administrator are authorized and directed to execute and deliver the Ground Lease, the Lease, and the Continuing Disclosure Certificate on behalf of the City, substantially in the forms on file with the City, but with all such changes therein as shall be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof. Copies of all of the transaction documents shall be delivered, filed and recorded as provided therein. The Mayor, the City Administrator, and other City officers are also authorized and directed to execute such other instruments as may be required to give effect to the transactions herein contemplated. (b) The officers of the City are authorized and directed to prepare and furnish to the original purchaser of the Bonds, and to the attorneys approving the Bonds, certified copies of all proceedings and records of the City relating to the power and authority of the City to enter into the Ground Lease, the Lease, and the Continuing Disclosure Certificate within their knowledge or as shown by the books and records in their custody and control, and such certified copies and certificates shall be deemed representations of the City as to the facts stated therein. Adopted by the Council of the City of Lino Lakes this 11 day ofMay , 2015. The motion for the adoption of the foregoing resolution was introduced by Council Member Roeser and was duly seconded by Council Member Kusterman and upon vote being taken thereon, the following voted in favor thereof: Roeser, Kusterman, Rafferty, Stoesz,_-Reil t The following voted against same: none ATTEST: Julinne Bartell, CityClerk 460729v1 JAE LN140-112 2 Jeff Reinert; `Mayo • • • CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Al Rolek MEETING DATE: May 11, 2015 TOPIC: Consider Resolution 15-51 Authorizing the Execution and Delivery of a Ground Lease, Lease -Purchase Agreement and Related Documents VOTE REQUIRED: 3/5 INTRODUCTION The City Council has approved Resolution 15-32 setting parameters for the issuance of Lease Revenue Bonds, Series 2015A, by the Lino Lakes Economic Development Authority (EDA) for financing for a new fire station facility. The City must now consider entering into a ground lease and a lease -purchase agreement with the EDA to go forward with this financing. Attached to this report are drafts of Resolution 15-51, the Ground Lease agreement and the Lease -Purchase agreement. BACKGROUND The City Council has entered into a contract to construct a fire station facility at Birch Street and Centerville Road. The project will be financed with lease -revenue bonds issued through the Lino Lakes Economic Development Authority (EDA). The City currently owns the property on which the facility is to be built. In order for the EDA to finance the project, the City must provide a ground lease to the EDA for the land on which the building will reside. The lease will commence upon the signing of the agreement, tentatively June 1, 2015, and will terminate according to the terms written in Article III of the agreement. The rent on the lease of the property will consist of good consideration and the payment of $1.00. The City Council will also enter into a lease -purchase agreement with the EDA. The lease will be in effect through February 1, 2036, at which time the financing for the facility will be retired. At that time the facility will become the property of the City. The City will annually appropriate funds to pay its lease obligation to the EDA, equal to the annual debt service payments, according to Exhibit B of the agreement, including all fees, charges and agent and counsel fees as they come due. The City agrees to maintain the property during the term of the lease and keep it in good repair. The City also agrees to provide liability and property insurance on the property and to indemnify the EDA during the lease term. All other terms and conditions of the lease -purchase agreement will also apply. Julie Eddington of the firm of Kennedy and Graven, Ltd., is the City's bond counsel. Ms. Eddington will be in attendance at tonight's meeting to address any questions or concerns you may have relative to these agreements. RECOMMENDATION Staff recommends approval of Resolution 15-51. • ATTACHMENTS Resolution 15-51 Ground Lease between the City of Lino Lakes and The Lino Lakes Economic Development Authority Lease -Purchase Agreement between the Lino Lakes Economic Development. Authority and the City of Lino Lakes •