RESO 25-049 - Resolution Relating to the the Financing of the City's Zane Avenue and Lindsay Street ProjectRESOLUTION NO. 25-049
RESOLUTION RELATING TO FINANCING THE RECONSTRUCTION OF ZANE AVENUE
AND LINDSAY STREET; DECLARING THE OFFICIAL INTENT TO REIMBURSE CERTAIN
CAITAL EXPENDITURES OF THE PROJECT FROM THE PROCEEDS OF TAX-EXEMPT
BONDS AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
WHEREAS, the Internal Revenue Service has issued Treasury Regulations, Section
1.150-2 (the “Reimbursement Regulations”) under the Internal Revenue Code of 1986, as
amended (the “Code”), providing that proceeds of tax-exempt bonds used to reimburse
prior capital expenditures will not be deemed spent unless certain requirements are met;
and
WHEREAS, the City of Golden Valley, Minnesota, a municipal corporation and a
political subdivision of the State of Minnesota (the “City”), expects to incur certain
expenditures that may be financed temporarily from sources other than tax-exempt bonds,
and later reimbursed from the proceeds of tax-exempt bonds; and
WHEREAS, the City has determined to make a declaration of its official intent (the
“Declaration”) to reimburse certain capital costs from the proceeds derived from the sale of
tax-exempt bonds issued by the City or another political subdivision in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Golden
Valley as follows:
1. The City may incur certain capital expenditures in connection with the
reconstruction of a portion of Zane Avenue and Lindsay Street (the “Project”) as
described in the Feasibility Construction Plans in Resolution 24-032.
2. The City reasonably expects to reimburse the expenditures made for certain costs
of the Project from the proceeds of tax-exempt bonds in a principal amount
currently estimated not to exceed $10,050,000. All reimbursed expenditures
related to the Project will be capital expenditures, costs of issuance of the tax-
exempt bonds or other expenditures eligible for reimbursement under Section
1.150-2(d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to
the proceeds of tax-exempt bonds, except for the following expenditures: (a)
costs of issuance of tax-exempt bonds; (b) costs in an amount not in excess of
the lesser of $100,000 or 5% of the proceeds of the tax-exempt bonds; or (c)
“preliminary expenditures” up to an amount not in excess of 20% of the aggregate
issue price of the tax-exempt bonds that are reasonably expected by the City to
finance the Project. The term “preliminary expenditures” includes architectural,
engineering, surveying, soil testing, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction, or rehabilitation of
the Project, excluding land acquisition, site preparation, and similar costs incident
to commencement of construction.
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Resolution No. 25-049 June 3, 2025
4. A reimbursement allocation with respect to tax-exempt bonds will be made not
later than 18 months after the later o: (i) the date the original expenditure is paid;
or (ii) the date the Project is placed in service or abandoned, but in no event more
than 3 years after the original expenditure.
5. This Declaration is an expression of the reasonable expectations of the City
based on the facts and circumstances known to the City as of the date hereof.
The anticipated original expenditures for the Project and the principal amount of
the tax-exempt bonds described in paragraph 2 are consistent with the City’s
budgetary and financial circumstances. No sources other than proceeds of tax-
exempt bonds are reasonably expected to be reserved, allocated on a long-term
basis or otherwise set aside pursuant to the City’s budget or financial policies to
pay such expenditure for which bonds are issued.
6. The action is intended to constitute a declaration of official intent for purposes of
the Reimbursement Regulations.
Adopted by the City Council of Golden Valley, Minnesota this 3rd day of June, 2025.
Roslyn Harmon, Mayor
ATTEST:
Theresa J. Schyma, City Clerk
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