HomeMy WebLinkAbout2025.05.05 RESO 2025-16 Public Hearing on Conduit Bonding RESOLUTION 2025-16
RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ISSUANCE OF
REVENUE BONDS AND AUTHORIZING THE PUBLICATION OF A NOTICE OF
HEARING(LEGACY CHRISTIAN ACADEMY PROJECT)
WHEREAS, Minnesota Statutes, Sections 469.152 through 469.165, as amended,
relating to municipal industrial development (the "Act"), gives municipalities the power to issue
revenue obligations for the purpose of promoting the welfare of the state by the active attraction,
encouragement and development of economically sound industry and commerce to prevent so far
as possible the emergence of blighted and marginal lands and areas of chronic unemployment; and
WHEREAS, the City of Hugo, Minnesota(the "City"), has received from Legacy
Christian Academy, a Minnesota nonprofit corporation (the"Borrower"), a proposal that the City
assist in financing a project hereinafter described in the form of Notice of Public Hearing attached
hereto as Exhibit A, through the issuance of revenue bonds or other obligations (the"Bonds"), in
one or more series,pursuant to the Act; and
WHEREAS,before proceeding with consideration of the request of the Borrower
it is necessary for the City to hold a public hearing on the proposal pursuant to Section 147(f) of
the Internal Revenue Code and Section 469.154, Subdivision 4, of the Act:
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hugo,
Minnesota, as follows:
1. A public hearing on the proposal of the Borrower will be held at the time
and place set forth in the Notice of Public Hearing to be published as described below,the form of
which is attached hereto as Exhibit A.
2. The general nature of the Project and an estimate of the aggregate principal
amount of the revenue bonds or other obligations to be issued to finance the proposal are described
in the attached form of Notice of Public Hearing.
3. The City Administrator is hereby authorized and directed to select the date
and time for the hearing and to cause notice of the hearing to be given one publication in the official
newspaper of the City and a newspaper of general circulation available in the City, not less than
14 days nor more than 30 days prior to the date fixed for the hearing, substantially in the form of
the attached Notice of Public Hearing.
Council members voting AYE: Krull, Miron, Petryk, Strub, Weidt
Council members voting NAY: None
Whereupon said resolution was declared passed and adopted this 5th d 20
Tom Weidt, Mayor
ATTEST:
Michele Lindau, ity Clerk
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting City 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 relate to calling for a public hearing on the City's
revenue bonds to finance a project for Legacy Christian Academy.
WITNESS my hand this 5' day of May, 2025.
City Clerk
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Taft Stettinius & Hollister LLP / Taftlaw.com / The Modern Law Firm
Catherine J. Courtney
612.977.8765
CCourtney@taftlaw.com
2200 IDS Center, 80 South 8th Street
Minneapolis, MN 55402-2210
Tel: 612.977.8400 | Fax: 612.977.8650
taftlaw.com
Affirmative Action, Equal Opportunity Employer
May 12, 2025
VIA E-MAIL
City of Hugo
14669 Fitzgerald Avenue N
Hugo, MN 55038
Legacy Christian Academy
3037 Bunker Lake Boulevard NW
Andover, MN 55304
Re: Legacy Christian Academy 2025 Financing
Dear Ladies and Gentlemen:
We have been asked to serve as Bond Counsel in connection with the proposed issuance by the City of Hugo,
Minnesota (the “Issuer”) of an educational facility revenue note (the “Note”) to be purchased by a bank yet-to-be-
identified (the “Lender”). The proceeds of the Note will be loaned by the Issuer to Legacy Christian Academy (the
“Borrower”), and will be used to finance the acquisition of an educational facility located in the City of Andover (the
“Project”). Northland Securities (the “Placement Agent”) is acting as placement agent in this transaction.
In performing our services as Bond Counsel, our client will be the Issuer. Our principal responsibility as
Bond Counsel is to provide the Issuer, the Borrower and the Lender an expert opinion (the “Bond Opinion”), upon
which each of them and the holder of the Note may rely, as to (i) the validity and enforceability of the Note and the
Issuer’s obligations under the financing documents, and (ii) exemption of interest on the Note from federal income
taxes. We will also assume principal responsibility for drafting the financing documents and any security documents
agreed to by the parties. You are also in agreement that we will not be acting as a municipal advisor in regards to this
transaction.
The Bond Opinion will be executed and delivered by us in written form on the date the Note is purchased
and will be based on facts and law existing as of that date. Upon delivery of the Bond Opinion, our responsibilities as
Bond Counsel will be concluded with respect to this financing.
In rendering the Bond Opinion, we will rely upon representations of the Issuer, the Borrower, and the Lender
set forth in the financing documents, the certified proceedings, and other certifications of public officials, officials of
the Borrower and other persons (including certifications as to the use of Note proceeds and various tax matters) without
undertaking to verify the same by independent investigation. As Bond Counsel, we do not review the financial
condition of the Borrower or the financial feasibility of the financing, and we will express no opinion relating to the
foregoing. We do not expect to give any opinion with respect to the Borrower’s participation in the financing or the
status of title or the priority of any mortgage lien or security interest securing the Note. As to these and other matters
the parties will be relying upon the opinion to be given by counsel for the Borrower or upon a policy of title insurance.
Because the Lender has not yet been specifically identified, we are unable to run a complete conflicts check
at this time. We wish to point out to the parties that, while it is assumed that the Lender will engage separate counsel
172809057v1
City of Hugo
Legacy Christian Academy
May 12, 2025
Page 2
for this transaction, we have and are currently representing many financial institutions, which might include the Lender,
in matters unrelated to this transaction from time to time in the past on legal matters unrelated to the present financing
and may do so in the future. While these unrelated representations may be “adverse” under applicable ethics rules,
this letter will confirm our understanding that the parties are agreeable notwithstanding any of our past or current
representation of the Lender on unrelated matters. If our understanding is not correct, please contact us
We understand that the Borrower will be responsible for payment of our fees and disbursements as Bond
Counsel. Our fee will be based upon our current understanding of the terms, structure, size and schedule of the
financing represented by the Note and the time we anticipate devoting to the financing, plus out-of-pocket
disbursements. Such fee may vary: (i) if the principal amount of Note actually issued differs significantly from the
amount currently anticipated, (ii) if the manner in which the Note is marketed (private placement, public offering, etc.)
changes, (iii) if material changes in the structure of the financing occur, or (iv) if unusual or unforeseen circumstances
arise which require a significant increase in our time or responsibility. If the Note is in fact issued we will submit our
statements for services and disbursements to the Borrower at or promptly after the closing.
If the transaction is cancelled before closing for whatever reason, we would then submit our bill to the
Borrower for the time expended and disbursements made by us to the date of termination at our standard hourly rates.
If the foregoing omits or misstates any item, please contact me. Otherwise, we will assume our participation
as Bond Counsel and the scope of our engagement as Bond Counsel are acceptable to you. In accordance with firm
policy, I would appreciate it if you would please sign the acknowledgement of this engagement letter below and return
a pdf copy by email.
Sincerely,
Taft Stettinius & Hollister LLP
Catherine J. Courtney
CJC:ck
Acknowledged and agreed:
City of Hugo
, 2025
Acknowledged and agreed:
Legacy Christian Academy
By:
Its: _________________________________
Date: , 2025
By:
Its: _______________Finance Director__________________
Date: May 20
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NOTICE OF PUBLIC HEARING ON A PROPOSAL
FOR THE ISSUANCE OF REVENUE BONDS
(LEGACY CHRISTIAN ACADEMY PROJECT)
Notice is hereby given that a public hearing shall be conducted by the City Council of the
City of Hugo, Minnesota (the “City”) on Monday, July 7, 2025 at 7:00 P.M. at the City Hall located
at 14669 Fitzgerald Avenue North, Hugo, Minnesota, to consider the proposal of Legacy Christian
Academy, a Minnesota nonprofit corporation (the “Borrower”), that the City issue revenue bonds
or other obligations, in one or more series (the “Bonds”), pursuant to Minnesota Statutes, Sections
469.152 to 469.165, as amended (the “Act”), in order to finance the Project hereinafter described.
The Project consists of the acquisition of land and improvements located generally at 3037
Bunker Lake Blvd NW in the City of Andover, Minnesota (“Andover”), for the purpose of the
expansion and continued operation of an approximately 145,000 square foot pre-K–12 private
school facility (the “Project”) to be owned and operated by the Borrower.
The estimated maximum principal amount of the Bonds to be issued to finance the Project
is $6,000,000.
A draft copy of the proposed application to the Commissioner of the Department of
Employment and Economic Development, State of Minnesota, for approval of the Project, together
with all attachments and exhibits thereto, is available for public inspection during normal business
hours, Monday through Friday, in the City Administrator’s office in City Hall.
The Bonds or other obligations if and when issued will not constitute a charge, lien or
encumbrance upon any property of the City, and such note or obligations will not be a charge
against the City’s general credit or taxing powers, but will be payable from sums to be paid by the
Borrower pursuant to a revenue agreement.
At the time and place fixed for the public hearing, the City will give all persons who appear
at the hearing an opportunity to express their views with respect to the proposal. In addition,
interested persons may file written comments respecting the proposal with the City Administrator
at or prior to the public hearing.
Date: May 30, 2025 BY THE ORDER OF THE CITY COUNCIL
OF THE CITY OF HUGO, MINNESOTA
By: Bryan Bear
City Administrator