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Council Meeting Minutes for May 5, 2025 <br />Page 4 of 5 <br /> <br />Approve Temporary Liquor License for Lions Club for Good Neighbor Days June 6-8, 2025 <br /> <br />The Hugo Lions Club had applied for a Temporary On-Sale Liquor License to serve alcohol at <br />Hugo Good Neighbor Days on June 6-8, 2025. Adoption of the Consent Agenda approved the <br />On-Sale Liquor License for the Hugo Lions during Good Neighbor Days subject to receipt of the <br />appropriate Certificate of Liquor Liability Insurance for the event. <br /> <br />Approve Ordinance Repealing Ordinance on Solar Farm Moratorium <br /> <br />The City Council had adopted interim Ordinance 2024-530 on May 20, 2024, placing a <br />moratorium on new development of solar farms and directing a study to be conducted, and <br />adopted Ordinance 2024-536 on October 21, 2024, extending said moratorium until May 20, <br />2025. The City had completed the study of the ordinance, and adopted Ordinance 2025-541 on <br />April 7, 2025, amending the ordinance as it relates to the definition of solar farms, the zoning <br />districts where they are permitted, and performance standards for solar farms. Staff had found <br />that with the newly adopted Ordinance in place, the need for the moratorium had ended. <br />Adoption of the Consent Agenda approved ORDINANCE NO. 2025-543 REPEALING A <br />TEMPORARY MORATORIUM ON NEW DEVELOPMENT OF SOLAR FARM SOLAR <br />ENERGY SYSTEMS. <br /> <br />Approve Resolution Setting Public Hearing for Legacy Christian Academy Conduit Financing <br /> <br />City Finance Director Anna Wobse informed Council the City was approached by Taft Law, the <br />City’s Bond Counsel, to act as a Conduit Bond Issuer for Legacy Christian Academy. The City <br />of Hugo has no plans to issue bonds this year. The City has acted as a Conduit Bond Issuer in <br />the past for Noble Academy & Minnesota Autism Center. <br /> <br />Wobse explained that Conduit Bonds are Revenue Bonds issued by a governmental agency on <br />behalf of the actual borrower, who is typically a private nonprofit 501(c) (3) entity. The bonds <br />would be tax-exempt bonds which can help lower borrowing cost. The actual borrower, not the <br />issuer, is responsible for interest payments and principal repayments. The issuer is not a <br />guarantor of conduit bonds or obligated to repay the bonds if the borrower fails to make the <br />payments. A city is allowed to issue $10 million in Conduit Bonds annually. The current <br />request would not exceed $6 million. The City of Andover cannot act as the Conduit Bond <br />Issuer because they have already issued bonds for another Borrower. The City would receive a <br />fee of ½ of 1% of the bond principal. Legacy Christian Academy would be the actual borrower <br />and solely responsible for repaying investors. It would not constitute a debt of the City or affect <br />the City’s credit rating. The borrower would be responsible for on-going reporting requirements. <br /> <br />Council had questions on risks to the City, whether it would limit the City on borrowing capacity <br />and how much work would it create for employees. Wobse and City Administrator Bryan Bear <br />explained it would not appear on the balance sheet, only in the audit report. Staff would need to <br />check in with the borrower annually. There would be no risk to the City, and Hugo could partner <br />with another city if Hugo needed to borrow money and had reached the $10 million annual cap. <br /> <br />Aaron Youngdahl, with Northland Securities, who is the Placement Agent, was present and