07-04 - 01-16 - Preliminary Approve Public Hearing Breck School Resolution 07-4 January 16, 2007
Member Pentel 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 (the "City"), 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 469.1651, 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 (the "Company"), has
requested that the City issue its revenue bonds (the "Bonds") in the aggregate principal
amount not to exceed $8,500,000 under the provisions of the Act to advance refund the
$10,000,000 City of Golden Valley, Minnesota Revenue Bonds (Breck School) Series 1999
(the "Series 1999 Bonds") which were issued to finance the costs of the acquisition,
construction, improvement, renovation, furnishing and equipping of an existing school for
the Company (the "Project"). The facilities to be refinanced by the Bonds are 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.
Resolution 07-4 - Continued January 16, 2007
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 RBC Capital Markets, 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 $8,500,000 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 20th
day of February, 2007 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.
Yoteect /(_Ya.7-fiti.d ,
Linda R. Loomis, Mayor
ATTEST:
4 r01e?
• usan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Shaffer
and upon a vote being taken thereon, the following voted in favor thereof: Freiberg,
Loomis, Pentel, Scanlon and Shaffer; 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 07-4 - Continued January 16, 2007
NOTICE OF PUBLIC HEARING ON THE ISSUANCE BY THE CITY OF GOLDEN
VALLEY, MINNESOTA OF ITS REFUNDING REVENUE BONDS TO LOAN THE
PROCEEDS TO BRECK SCHOOL TO REFINANCE THE OUTSTANDING CITY OF
GOLDEN VALLEY, MINNESOTA REVENUE BONDS (BRECK SCHOOL) SERIES 1999
WHICH WERE ISSUED 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 a public hearing on February 20, 2007 at 7:00 p.m. at City Hall, 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
refinancing the outstanding City of Golden Valley, Minnesota Revenue Bonds (Breck
School) Series 1999 (the "Series 1999 Bonds") which were issued to finance 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 469.1651 (the "Act"). The proceeds of the revenue bonds will be loaned to the
Borrower in an amount not to exceed $8,500,000 to refinance the outstanding City of
Golden Valley, Minnesota Revenue Bonds (Breck School) Series 1999 (the "Series 1999
Bonds") which were issued to finance the acquisition, construction, improvement,
renovation, furnishing and equipping of the Borrower's 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 Refunding 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 $8,500,000 with
the proposed issue presently expected to be $8,500,000. 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.
CITY OF GOLDEN VALLEY, MINNESOTA
By: Linda R. Loomis, Mayor