HomeMy WebLinkAbout2014.08.18 RESO 2014-28V
Extract 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 (the "City"), was duly held at the City Hall in said City on Monday,
the 18'b day of August, 2014, at 7:00 o'clock P.M.
The following members were present: Bronk, Haas, Klein, Petryk, Weidt
and the following were absent: None
Member Bronk introduced the following resolution and moved its adoption:
RESOLUTION NO -2014-28
RESOLUTION AFFIRMING THE ISSUANCE OF
CHARTER SCHOOL LEASE REVENUE BONDS TO
FINANCE A PUBLIC (CHARTER) SCHOOL PROJECT
PURSUANT TO MINNESOTA LAW
(NOBLE ACADEMY PROJECT)
1. Authori . The City is, by the Constitution and laws of the State of Minnesota,
including Minnesota Statutes, Sections 469.152 to 469.1655, as amended (the "Act"), authorized
to issue and sell its revenue bonds for the purpose of financing industrial development within the
boundaries of the City and to enter into agreements necessary or convenient in the exercise of the
powers granted by the Act.
2. Authorization of Project. CS Property Noble, LLC (the "Borrower"), a Minnesota
limited liability company, the sole member of which is Hmong American Partnership, a
Minnesota nonprofit corporation and an organization described under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended, has proposed that the City issue and sell its Charter
School Lease Revenue Bonds (Noble Academy Project), Series 2014A (the "Series 2014A
Bonds") and its Taxable Charter School Lease Revenue Bonds (Noble Academy Project, Series
2014B (the "Series 2014B Bonds" and together with the Series 2014A Bonds, the "Bonds") in an
aggregate amount not to exceed $22,500,000, pursuant to the Act, and loan the proceeds thereof
to the Company in order to finance the acquisition, construction and equipping of an
approximately 95,000 square foot school building for use as a public charter school 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"), to be leased to Noble Academy (the "School"), a Minnesota nonprofit corporation and
an organization described under Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended; (ii) fund a debt service reserve fund; (iii) pay a portion of the interest on the Bonds;
and (iv) pay the costs of issuing the Bonds.
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3. Findings. It is hereby found, determined and declared that:
(a) The Project constitutes a Project authorized by and described in the Act.
(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 engaged in any business within the
meaning of Subdivision 2(b) of Section 469.153 of the Act; that the Project furthers the purposes
stated in Minnesota Statutes, Section 469.152; that the availability of the financing under the Act
and willingness of the City to furnish such financing will be substantial inducement to the
Company to undertake the Project, and that the effect of the Project, if undertaken, will be to
encourage the development of economically sound industry and commerce, to assist in the
prevention of the emergence of blighted and marginal land, to help prevent chronic
unemployment, to help the City retain and improve the tax base and 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 be as effectively used, to promote more intensive development and use of land within the
City, and, eventually, to increase the tax base of the community.
(c) The City held a public hearing with respect to the Project on June 16, 2014
in accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended
(the "Code"), and preliminarily approved the Project and the issuance of the Bonds. Necessary
application was made to the State of Minnesota Department of Employment and Economic
Development ("DEED") and approval from DEED has been received. On July 14, 2014, the
City authorized the issuance and sale of the Bonds in an amount not to exceed $20,000,000 (the
"Bond Resolution").
(d) Subsequent to such public hearing, preliminary resolution, DEED
approval and adoption of the Bond Resolution, it was determined that an increase in the
anticipated principal amount of the Bonds from $20,000,000 to $22,500,000, was necessary. A
second public hearing on the Project was held on this date, after notice was published and
materials made available for public inspection at the office of the Clerk, all as required by the
Act and the Code, at which public hearing all those appearing who desired to speak were heard
and written comments were accepted.
(e) On July 28, 2014 Brooklyn Park was scheduled to hold a public hearing
on the Project upon due notice and publication thereof. Due to the anticipated increase in the
amount of the Bonds, Brooklyn Park cancelled the public hearing. The Borrower has advised the
City that a public hearing on the Project will be held on August 18, 2014 by Brooklyn Park as the
host city, after amended notice was published as required by the Act and 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.
4. Approval: Increase in Anticipated Principal Amount. The City hereby approves
the increase in the anticipated principal amount from $20,000,000 to $22,500,00 and authorizes
and directs all necessary filings with DEED to reflect such increase.
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s
5. Ratification and Affirmation of Bond Resolution. The City hereby ratifies and
affirms the Bond Resolution and the Bond Resolution remains in full force and effect.
The motion for the adoption of the foregoing resolution was duly seconded by member
Petryk and after full discussion thereof and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same: Bronk, Haas, Klein, Petryk, Weidt
whereupon said resolution was declared duly passed and adopted.
ADOPTED by the City Council on August 18, 201 .
Tom Weidt, Mayor
ATTEST:
Michele Lindau, City Clerk
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting Clerk of the City of Hugo,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council of said City, duly called and
held on the date therein indicated, insofar as such minutes related to a resolution affirming the
Noble Academy Project.
I
�j �
WITNESS my hand this / day of August, 2014.
n,
Lk,
Clerk
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