2014.07.14 RESO 2014-26 - Laserfiche WebLink

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WHEREAS, the City has received a proposal from CS Property Noble, LCC, a Minnesota limited liability company (the "Borrower"), the sole member of which is Hmong American Partnership, a Minnesota nonprofit corporation, that the City issue its revenue bonds in the aggregate principal amount of up to $20,000,000 to finance the acquisition, construction and equipping of an approximately 95,000 square foot school building for use as a public charter Project for kindergarten through grade eight to be located at the intersection of Jefferson Highway North and Decatur Drive North in the City of Brooklyn Park, Minnesota (`Brooklyn Park") (the "Project"); WHEREAS, in accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the City held a public hearing on June 16, 2014 on the issuance of revenue bonds of the City to finance the Project; and WHEREAS, the Borrower has advised the City that a public hearing on the Project will be held on July 28, 2014 by Brooklyn Park as the host city, after notice was published as required by the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), at which public hearing all those appearing who desire to speak or provide written comments will be heard or accepted and following such public hearing Brooklyn Park will approve the issuance of the Bonds. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, as follows: 1. The Borrower has proposed that the City issue its Charter School Lease Revenue Bonds (Noble Academy Project), Series 2014A and Series 2014B, which may be in one or more series and either as notes or bonds (the 'Bonds") in an amount not to exceed $20,000,000 to finance the costs of the Project, in accordance with a Bond Purchase Agreement (the 'Bond Purchase Agreement") among Piper Jaffray & Co. (the "Underwriter"), the Borrower and the City. 2. It is proposed that, pursuant to a Loan Agreement between the City and the Borrower (the "Loan Agreement"), the City will make a loan of the proceeds of the sale of the Bonds to the Borrower and the Borrower agrees to undertake and complete the Project and to pay amounts in repayment of the loan sufficient to provide for the full and prompt payment of the principal of, premium, if any, and interest on the Bonds. It is further proposed that the City assigns its rights to the payment and certain other rights under the Loan Agreement to a national banking association to be named (the "Trustee"), as security for payment of the Bonds under an Indenture of Trust (the "Indenture") between the City and the Trustee. The Bonds will be further secured by a Combination Mortgage, Security Agreement, and Assignment of Rents between the Borrower and the Trustee (the "Mortgage"). 3. The Borrower and the Trustee will enter into a Continuing Disclosure Agreement (the "Continuing Disclosure Agreement") to ensure compliance with Rule 15c2-12 promulgated under the Securities and Exchange Act of 1934, as amended. The Bonds will be offered for sale by the Underwriter pursuant to an Official Statement (the "Official Statement"). 4. Forms of the following documents have been submitted to the City Council: K