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HomeMy WebLinkAbout2014.06.16 RESO 2014-18Extract of Minutes of a Meeting of the City Council of the City of Hugo, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hugo, Minnesota was duly held in the City of Hugo, Minnesota, on Monday, June 16, 2014, at 7:00 P.M. The following members were present: Bronk, Haas, Klein, Petryk, Weidt and the following were absent: None During said meeting Bronk introduced the following resolution and moved its adoption: RESOLUTION NO -18 RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE AND SALE OF CHARTER SCHOOL LEASE REVENUE BONDS, SERIES 2014 (NOBLE ACADEMY PROJECT) WHEREAS, (a) Minnesota Statutes, Sections 469.152 to 469.1655, as amended (the "Act") authorizes cities to issue revenue bonds to finance industrial development projects to promote the welfare of the state by the active development of economically sound industry and commerce to meet the needs of an increasing population and the need for development of land use which will provide an adequate tax base to finance the increasing cost of governmental services and access to employment opportunities for such population; (b) The City Council of the City of Hugo, Minnesota (the "City") has received from CS Property Noble, LLC, a Minnesota nonprofit limited liability company organized under the laws of the State of Minnesota (the "Borrower"), a proposal that the City assist in financing a Project hereinafter described through the issuance of revenue obligations, in one or more series, as further defined below, the 'Bonds," pursuant to the Act; (c) The City desires to facilitate the selective development of the Minnesota community, retain and help to provide the range of services and employment opportunities required by the population, including educational services; and the Project will assist the City and the Minnesota community in achieving those objectives and will enhance the image and reputation of the community; (d) The Project to be financed by the Bonds is the acquisition of land located generally at the southeast corner of the intersection of Jefferson and 95th Avenue North in the City of Brooklyn Park, Minnesota ("Brooklyn Park") and the construction and equipping thereon 62827800 of an approximately 95,000 square foot K-8 charter school facility (the "Project") to be leased to Noble Academy, a Minnesota Charter School ("Noble Academy"). The Project is owned by the Borrower and operated by Noble Academy; (e) The City has been advised by representatives of the Borrower that with the aid of municipal financing, and its resulting law borrowing cost, the Project is economically more feasible; (f) Based on representations of the Borrower, no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project; (g) The Borrower has advised the City that a public hearing on the Project will be held on July 23, 2014 by the City of 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; and (h) A public hearing on the Project was held on this date in the City, after notice was published and materials made available for public inspection at the City Hall, all as required by the Act and Section 147(f) of the Code, at which public hearing all those appearing who desired to speak were heard and written comments were accepted. BE IT RESOLVED by the City Council of the City of Hugo, Minnesota (the "City"), as follows: 1. Fines. The City hereby finds, determines, and declares as follows: (a) The City is a municipal corporation and a political subdivision of the State of Minnesota and is authorized under the Act to assist the revenue producing project herein referred to, and to issue and sell the Bonds, as hereinafter defined, for the purpose, in the manner and upon the terms and conditions set forth in the Act and in this Resolution. (b) On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises within the meaning of Subdivision 2(b) of Section 469.153 of the Act; that the Project furthers the purposes stated in Section 469.152; that the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the surrounding area retain and eventually improve the tax base, to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, and 2 6282780x1 to promote more intensive development and use of land within the City of Brooklyn Park and surrounding communities. 2. Preliminary Approval. The City hereby gives preliminary approval to the proposal of the Borrower that the City undertake the Project, and the financing therefor, pursuant to the Act and to issue the Bonds in the principal amount not to exceed $20,000,000. 3. DEED Application. The financing of the Project by the issuance of the Bonds by the Issuer is subject to, among other things, (a) the approval of the Project by the City and the Minnesota Department of Employment and Economic Development, (b) final approval by the City, the Borrower and the purchaser of the Bonds as to the ultimate details of the financing, and (c) review and approval of the proposed Project by Bond Counsel. 4. Payment of Costs. The Borrower has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the City will be paid by the Borrower. 5. Bond Documents. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the Borrower and the purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants and other provisions of the necessary documents and submit such documents to the City for final approval. 6. Limited Obligation. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Bonds shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged for the payment thereof, nor shall the City be subject to any liability thereon. No holders of the Bonds shall ever have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any property of the City, except such property as may be expressly pledged for the security of the Bonds. The Bonds shall recite in substance that the Bonds, including the interest thereon, is payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 7. Reimbursement. In anticipation of the approval of the Project by the State of Minnesota, Department of Employment and Economic Development and all other necessary entities and the issuance of the Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the City hereby authorizes the Borrower, in accordance with the provisions of the Act and subject to the terms and conditions imposed by the purchaser of the Bonds, to provide for the expansion, renovation, and equipping of the Project by such means as shall be available to the Borrower and in the manner determined by the Borrower, and without advertisement for bids as may be required for the construction and acquisition of other municipal facilities; the City hereby ratifies, affirms, and approves all actions heretofore taken by the Borrower consistent with and in anticipation of such 3 6282780x1 authority; and the Borrower is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds as the Borrower considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Bonds if and when delivered but otherwise without liability on the part of the City. The motion for the adoption of the foregoing resolution was duly seconded by Member Klein, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Bronk, Klein, Petryk, Haas, Weidt and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. ADOPTED by the City Council this 160' day of June, 2014. /A% 0 -2 Tom Weidt, Mayor ATTEST: Michele Lindau, City Clerk 4 62a2780A