Loading...
99-079 - 09-07 - Preliminary Approval to Public Hearing (Breck School) Municipal Industrial Development ActResolution 99-79 September 7, 1999 0 Member LeSuer introduced the following resolution and moved its adoption: RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING THE PROJECT PRELIMINARY APPROVAL SUBJECT TO A PUBLIC HEARING (BRECK SCHOOL) BE IT RESOLVED by the City Council of the City of Golden Valley, Hennepin County, Minnesota, as follows: Section 1. Policy and Purpose. 1.01. For the purpose of providing revenue-producing enterprises, the City is authorized by Minnesota Statutes, Sections 469.152 through 469.165, as amended (the "Act'), to enter into loan agreements with corporations providing for the City to loan the proceeds derived from the issuance of revenue bonds to the corporation to be used to pay the costs of a project as defined in the Act and providing for the repayment of the loan by the corporation. 1.02. Breck School, a Minnesota nonprofit corporation (referred to herein as the "Company"), has requested that the City issue its revenue bonds (the "Bonds") in the aggregate principal amount not to exceed $11,000,000 under the provisions of the Act to pay • or reimburse for the costs of financing the acquisition, construction, improvement, renovation, furnishing and equipping of an existing school for the Company (the "Project'). The facilities to be financed by the Bonds will be located at 123 Ottawa Avenue North in the City. 1.03. The Project would increase the level of economic activity in the City and to the residents of the City and surrounding area. 1.04. The City is advised by representatives of the Company that with the aid of municipal financing, and the resulting lower borrowing cost, the Project would be significantly more feasible. The City is further advised by the Company that approval of municipal financing would be a significant inducement to the undertaking of the Project by the Company. Section 2. Findings. 2.01. Subject to the holding of a public hearing according to law, it appears the issuance of the Bonds will be in the public interest and any competitive nature and impact and effect of the issue upon existing industry and business will not result in an unfair advantage for the proposed project to the substantial detriment of existing enterprises. 0 Resolution 99-79 - Continued September 7, 1999 40 Section 3. Approval and Authorization. 3.01. Subject to the holding of a public hearing according to law and subject to the mutual agreement of the City, the Company and Dain Rauscher Incorporated, the initial purchaser of the Bonds, as to the details of an indenture, loan agreement and/or other documents necessary to evidence and effect the financing of the Project and the issuance of the Bonds, the issuance of revenue bonds of the City, in one or more series, in an amount not to exceed $11,000,000 is hereby preliminarily approved and authorized to finance the Project. 3.02. Neither this preliminary commitment nor any actions, agreements, or legal matters related hereto or executed in pursuant hereof, shall in any manner or form create an indebtedness of liability of the City. 3.03. The passage of this resolution does not finally commit the City to issue the Bonds nor, if applicable, establish priority for purposes of staying within the limitations established by federal law for the amount of private activity bonds that may be issued by the City of Golden Valley or the State of Minnesota. Section 4. Public Hearing. 4.01. Since a public hearing, after notice according to law, is required for final . approval of the issuance of the Bonds, a public hearing on the issuance of the Bonds shall be held at the City Hall, 7800 Golden Valley Road, Golden Valley, Minnesota, on the 5th day of October, 1999 at 7:00 p.m. and the City Manager is hereby instructed to give notice of such public hearing according to law. 4.02. The form of public notice attached to this Resolution is hereby approved. Mary E. derson, Mayor ATTEST: �1�f n Shirley J. ',eNon, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Bakken and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Bakken, . Johnson, LeSuer and Micks; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and her signature attested by the City Clerk. Resolution 99-79 - Continued September 7, 1999 NOTICE OF PUBLIC HEARING ON THE ISSUANCE BY THE CITY OF GOLDEN VALLEY, MINNESOTA OF ITS REVENUE BONDS TO LOAN THE PROCEEDS OF THE REVENUE BONDS TO BRECK SCHOOL TO FINANCE THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, RENOVATION, FURNISHING AND EQUIPPING OF A SCHOOL NOTICE IS HEREBY GIVEN, that the City of Golden Valley, Minnesota (the "City") will conduct public hearing on October 5, 1999 at 7:00 p.m. at 7800 Golden Valley Road, Golden Valley, Minnesota, for the purpose of receiving any and all comments, reports or other information from the public and any interested persons or parties on the proposed issuance by the City of its revenue bonds for the purpose of financing approximately $11,000,000 of financing the acquisition, construction, improvement, renovation, furnishing and equipping of an existing school for Breck School, a Minnesota nonprofit corporation (the "Borrower") under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152 through 469.165 (the "Act"). The proceeds of the revenue bonds will be loaned to the Borrower to finance approximately $11,000,000 of financing the acquisition, construction, improvement, renovation, furnishing and equipping of an existing school. The Project will be owned by, operated and managed by the Borrower. The Project will be located at 123 Ottawa Avenue, Golden Valley, Minnesota. The Project will be used for education. • The purpose of the public hearing will be to receive information and a proposal that the City issue its Revenue Bonds under the Act in order to loan the proceeds to the Borrower. The maximum principal amount of the total of the Bonds will be $11,000,000 with the proposed issue presently expected to be $11,000,000. The Bonds will not be general obligations of the City, nor shall they be payable in any manner by taxation. The Bonds will be payable solely from the revenues of the Project pledged to the payment thereof, from investment proceeds and from other revenues of the Borrower, except that the Bonds may be secured by other encumbrances on the Project. The public hearing will be conducted by the Mayor of the City or some other person delegated to conduct the hearing by the Mayor. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the Mayor of the City prior to the date of the hearing. The City is expected to meet and act on the final approval to issue Bonds promptly upon completion of the hearing. A copy of the Application of the City for approval of the Project, together with all attachments and exhibits thereto is available for public inspection at City Hall, 7800 Golden Valley Road, Golden Valley, Minnesota from the date of this notice to the date of the public hearing hereinabove identified, during normal business hours. • BY ORDER OF THE CITY COUNCIL /s/Shirley J. Nelson, City Clerk