01-61 - 10-02 - Public Hearing Issue Revenue Bonds Courage Center Resolution 01-61 October 2, 2001
Member Bakken introduced the following resolution and moved its adoption:
RESOLUTION CALLING FOR A PUBLIC HEARING AND GIVING PRELIMINARY
APPROVAL TO THE PROPOSED ISSUANCE OF REVENUE BONDS UNDER
MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165
COURAGE CENTER
WHEREAS, the City of Golden Valley, Minnesota (the "City") is a statutory city, duly
organized and existing under the Constitution and laws of the State of Minnesota.
WHEREAS, under the Minnesota Municipal Industrial Development Act, Minnesota
Statutes, Sections 469.152-469.165, as amended (the "Act"), each home rule charter or
statutory city of the State of Minnesota, including the City, is authorized to issue revenue
bonds, revenue notes, or other revenue obligations to finance, in whole or in part, the costs
of the acquisition, construction, improvement, or extension of a revenue producing
enterprise, whether or not operated for profit; and
WHEREAS, Courage Center, a Minnesota nonprofit corporation (the "Corporation"),
has requested that the City issue one or more series of revenue bonds, revenue notes, or
other revenue obligations (the "Bonds") and loan the proceeds derived from the sale of the
Bonds to the Corporation, pursuant to the terms of a Loan Agreement between the City
and the Corporation (the "Loan Agreement") to finance costs related to the remodeling and
refurbishment of The Courage Residence, a 64-bed skilled nursing facility located at 3915
Golden Valley Road in the City (the "Project"); and
WHEREAS, the Act and Section 147(f) of the Internal Revenue Code of 1986, as
amended, and regulations promulgated thereunder, require that prior to the issuance of the
Bonds, this Council conduct a public hearing with respect to the Project and the issuance of
the Bonds to finance the Project.
NOW, THEREFORE, BE IT RESOLVED THAT:
Public Hearing.
At a meeting beginning at approximately 7:00 p.m. on Wednesday, November 7,
2001, the City Council will conduct a public hearing on the issuance of the Bonds as
requested by the Corporation.
It shall be the Corporation's responsibility to publish notice of the hearing in
substantially the form attached hereto as Exhibit A in the official newspaper and in a
newspaper of general circulation in the City once, at least fifteen days prior to the date of
the public hearing.
Resolution 01-61 - Continued October 2, 2001
Preliminary Approval.
1. The City hereby grants preliminary approval for the issuance of the Bonds for the
purposes referenced in this resolution and in an aggregate principal amount not to exceed
$5,200,000, subject to the approval of the Project by the Minnesota Department of Trade
and Economic Development ("DTED"), as required by the Act, and subject to the mutual
agreement of the City, the Corporation, and the initial purchaser of the Bonds as to the
details of the Bonds and provisions for their payment. In all events, it is understood,
however, that the Bonds shall not constitute a pecuniary liability or charge, lien or
encumbrance, legal or equitable, upon any funds, assets, taxing power or any other
property of the City except the City's interest in the Loan Agreement; and the Bonds, when,
as, and if issued, shall recite in substance that the Bonds, including interest thereon, are
payable solely from the revenues received from the Loan Agreement and other property
pledged to the payment thereof, and shall not constitute general or moral obligations of the
City.
2. In accordance with Section 469.154 of the Act, the City will cooperate with the
Corporation in submitting the proposal for the financing of the Project to DTED, including
the execution of necessary documentation by City officials.
3. As requested by the Corporation, the law firm of Kennedy & Graven, Chartered is
designated to serve as Bond Counsel and assist in the preparation and review of
necessary documents relating to the Project and the Bonds to be issued in connection
therewith.
4. The Corporation shall pay to the City any and all costs incurred by the City in
connection with the Bonds or the financing of the Project, whether or not the financing of
the Project is approved by DTED, whether or not the financing is carried to completion, and
whether or not the Bonds or operative instruments are executed and delivered. The
Corporation shall also comply with the City's deposit and fee policies respecting such
revenue bond issues.
5. All commitments of the City expressed herein are subject to the condition that by
November 1, 2002, the City and the Corporation will have agreed to mutually acceptable
terms and conditions of the Loan Agreement, the Bonds, and of the other instruments and
proceedings relating to the Bonds and their issuance and sale. If the events set forth
herein do not take place within the time set forth above, or any extension thereof, and the
Bonds are not sold within such time, this resolution will expire and be of no further effect.
Resolution 01-61 - Continued October 2, 2001
6. The adoption of this resolution does not constitute a guaranty or firm commitment
that the City will issue the Bonds as requested by the Corporation. The City retains the
right in its sole discretion to withdraw from participation and accordingly not to issue the
Bonds, or issue the Bonds in an amount less that the amount referred to herein, should the
City at any time prior to issuance thereof determine not to issue the Bonds, or to issue the
Bonds in an amount less than the amount referred to in paragraph 1 hereof, or should the
parties to the transaction be unable to reach agreement as to the terms and conditions of
any of the documents required for the transaction.
7. With respect to eligible costs of the Project which may be paid by the Corporation
prior to the issuance of the Bonds and reimbursed to the Corporation from the proceeds of
the Bonds, this resolution is intended to be a reimbursement resolution and declaration of
intent to issue reimbursement bonds under Treasury Regulations, Section 1.150-2, as
amended.
Effective Date. This Resolution shall be in full force and effect from and after its
passage.
Mary E;' nderson, Mayor
ATTEST:
Donald G. Taylor, C. Jerk
The motion for the adoption of the foregoing resolution was seconded by Member Johnson
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 01-61 - Continued October 2, 2001
EXHIBIT A
NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF REVENUE BONDS
COURAGE CENTER
NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City
Council of the City of Golden Valley, Minnesota (the "City"), on a proposal to finance the
remodeling and refurbishment of The Courage Residence, a 64-bed skilled nursing facility
(the "Project") owned by Courage Center, a Minnesota nonprofit corporation (the
"Borrower"), pursuant to Minnesota Statutes, Sections 469.152 to 469.165, as amended.
The Project is located at 3915 Golden Valley Road in the City. The hearing will be held at
City Hall, 7800 Golden Valley Road, Golden Valley, Minnesota, at 7:00 p.m. or later on
Wednesday, November 7, 2001. Under the proposal, revenue bonds or other revenue
obligations of the City, in the original aggregate principal amount of approximately
$5,200,000, would be issued to finance the Project. The bonds or other obligations will not
be general obligations of the City, will not be secured by taxing power of the City, and
would not be payable from any property of the City other than payments to be made by the
Borrower.
At said time and place, the City Council will give all parties who appear an
opportunity to express their views with respect to the proposal to undertake and finance the
Project. A draft copy of the application to the Minnesota Department of Trade and
Economic Development, together with attachments thereto, is available for inspection at the
City Hall during regular business hours.
CITY OF GOLDEN VALLEY, MINNESOTA
By: /s/ Donald G. Taylor, City Clerk