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RESOLUTION NO. 2017-18
<br />RESOLUTION PROVIDING FOR THE FIRST AMENDMENT TO
<br />EDUCATIONAL FACILITY REVENUE BOND
<br />(MINNESOTA AUTISM CENTER PROJECT), SERIES 2015
<br />AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO
<br />BE IT RESOLVED by the City Council of the City of Hugo, Minnesota (the "City"), as
<br />follows:
<br />SECTION 1 LEGAL AUTHORIZATION AND FINDINGS.
<br />1.1 Finding s. The City hereby finds, determines and declares as follows:
<br />(1) The City, pursuant to Resolution 2015-55 adopted on November 2, 2015 (the "Bond
<br />Resolution"), has previously issued its revenue bond in the aggregate principal amount not to
<br />exceed $8,800,000 to provide funds that were loaned to Autism Opportunities Foundation d/b/a
<br />Minnesota Autism Center, a Minnesota nonprofit corporation (the 'Borrower"), to finance (i) the
<br />refunding of the Borrower's existing taxable debt related to the acquisition of land and the
<br />purchase of an existing structure in 2014 acquired for the purpose of establishing a private school
<br />to service students grades 4-12 diagnosed with autism spectrum disorder ("ASD"), consisting of
<br />a one-story building of approximately 35,978 square feet with 14 classrooms, a playground area,
<br />lunch room, small gym, arcade, library, and parking lot (the "Existing Facility") currently
<br />located at 3800 Tesseract Place in the City of Eagan, Minnesota ("Eagan") (the "Existing
<br />Project"), and (ii) the acquisition, construction, and equipping of an approximately 48,332 square
<br />foot two-story new school building, to be joined with the Existing Facility, which will serve
<br />primarily high school students with ASD, and will include a reception area, approximately 14
<br />classrooms, 11 therapy/breakout rooms, 5 office/conference rooms, a library, an arcade, a lunch
<br />room, and a gymnasium, and will also include construction of a soccer field and a new parking
<br />lot all to be located adjacent to the Existing Project in Eagan, all of which is at the southwest
<br />corner of Silver Bell Road and Tesseract Place (the "Expansion Project" and, together with the
<br />Existing Project, the "Project").
<br />(2) The City issued the Educational Facility Revenue Bond, Series 2015 (Minnesota Autism
<br />Center Project) dated November 1, 2015, (the 'Bond"), pursuant to Minnesota Statutes, Section
<br />469.152 to 469.165, as amended (the "Act").
<br />(3) Pursuant to a Financing Agreement (the "Financing Agreement") dated November 1,
<br />2015 between the City, the Borrower, and Wells Fargo Bank, National Association (the
<br />"Lender"), the Borrower agreed to repay the Bond in specified amounts and at specified times
<br />sufficient to pay in full when due the principal of, premium, if any, and interest on the Bond. In
<br />addition, the Financing Agreement contains provisions relating to the expenditure of proceeds of
<br />the Bond, the maintenance and operation of the Project, indemnification, insurance, and other
<br />agreements and covenants which are required or permitted by the Act and which the City, the
<br />Borrower and Lender deem necessary or desirable for the financing of the Project.
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