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CITY OF MOUNDS VIEW
<br />COUNTY OF RAMSEY
<br />STATE OF MINNESOTA
<br />RESOLUTION NO.9779
<br />RESOLUTION AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY
<br />OF EDUCATIONAL FACILITIES REVENUE NOTES AND APPROVING
<br />THE FORM OF AND AUTHORIZING THE EXECUTION AND
<br />DELIVERY OF THE NOTES AND RELATED DOCUMENTS (HIGH
<br />SCHOOL FOR RECORDING ARTS PROJECT)
<br />WHEREAS, the City of Mounds View, Minnesota (the "City") is a home rule charter city,
<br />municipal corporation, and political subdivision duly organized and existing under the
<br />Constitution, its Charter and laws of the State of Minnesota. Pursuant to Minnesota Statutes,
<br />Sections 469.152 through 469.1655, as amended (the "Act"), the City is authorized to issue
<br />revenue obligations to finance or refinance, in whole or in part, the cost of the acquisition,
<br />construction, reconstruction, improvement, betterment, or extension of a "project," defined in the
<br />Act, in part, as any properties, real or personal, used or useful in connection with a revenue
<br />producing enterprise;
<br />WHEREAS, HSRA Building Company, a Minnesota nonprofit corporation (the
<br />"Company"), owns the building and related facilities located at 1166 University Avenue in the
<br />City of Saint Paul, Minnesota (the "School Facility") for educational purposes and leases the
<br />School Facility to High School for Recording Arts, a Minnesota nonprofit corporation (the
<br />"School"), pursuant to a Lease Agreement to be entered in between the Company and the School,
<br />for the operation of a public charter facility;
<br />WHEREAS, the Company has requested that the City issue its Educational Facilities
<br />Revenue Notes (High School for Recording Arts Project), Series 2023, in one or more series, in
<br />the original aggregate principal amount not to exceed $6,200,000 (collectively, the "Notes"), and
<br />loan the proceeds derived from the sale of the Notes to the Company pursuant to a Loan
<br />Agreement, to be dated on or after August 1, 2023 (the "Loan Agreement"), between the City and
<br />the Company, to (i) refund the Charter School Lease Revenue Bonds (High School for Recording
<br />Arts Project), Series 2015A (the "2015A Bonds"), previously issued by the Housing and
<br />Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") to finance the
<br />acquisition, renovation, improvement and equipping of the School Facility; (ii) fund a debt service
<br />reserve fund, if necessary; (iii) pay a portion of the interest on the Notes, if necessary; and (iv) pay
<br />the costs of issuing the Notes, if necessary (the "Project"). The Notes are proposed to be purchased
<br />by North Star Bank, a Minnesota banking corporation (the "Lender");
<br />WHEREAS, the Company and the School have both represented to the City that they are
<br />exempt from federal income taxation under Section 501(a) of the Internal Revenue Code of 1986,
<br />as amended (the "Code"), as a result of the application of Section 501(c)(3) of the Code;
<br />WHEREAS, Minnesota Statutes, Section 471.656, as amended, authorizes a municipality
<br />to issue obligations to finance the acquisition or improvement of property located outside of the
<br />SA130\288\879898.v3
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