12-060 - 09-04 - call for public hearing - host approval - breck school revenue bonds Resolution 12-60 September 4, 2012
Member Pentel introduced the following resolution and moved its adoption:
RESOLUTION CALLING A PUBLIC HEARING FQR THE PURPOSE OF
PROVIDING HOST APPROVAL FOR THE ISSUANCE OF REVENUE OBLIGATIONS
BY THE CITIES OF MINNETONKA AND ST. LOUIS PARK TO FINANCE
THE CONSTRUCTION AND EQUIPPING OF SCHOOL FACILITIES BY
BRECK SCHOOL PURSUANT TQ MINNESOTA STATUTES, SECTIONS 469.152
THROUGH 469.1651, AS AMENDED
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the
"City") as follows:
Section 1. Recitals.
1.01. Minnesota Statutes, Sections 469.152 through 469.1651, as amended (the
"Act"), authorizes a city to issue revenue obligations to finance, in whole or in part, the cost
of the acquisition, construction, reconstruction, improvement, betterment, or extension of a
"project,'" defined in the Act, in part, as any properties, real ar personal, used or useful in
connection with a revenue producing enterprise, whether or not operated for profit, and to
pay, purchase or discharge all or any part af the outstanding indebtedness of a contracting
party engaged in educational activities as an elementary, seeondary or past-secondary
school (as defined in the Act).
1.02. Breck School, a Minnesota nonprofit corparation (the "Borrower"), has
praposed that the City approve the issuance by the City of St. Louis Park, Minnesota ("St.
Louis Park"), of one or more series of revenue obligations in a principal amount not to
exceed $6,500,000 (the "Series 2012A Note"), and the issuance by the City of Minnetonka,
Minnesota ("Minnetonka"), of one or more series of revenues obligations in a principal
amount not to exceed $6,500,000 (the "Series 2012B Note," and together with the Series
2012A Note, the "Series 2012 Notes"), under the terms of the Act, to finance a Project
described herein.
1.03. The campus of the Borrower is located at 123 Ottawa Avenue North in the
City. The Borrower has a Lower School, Middle School, and Upper School, which can
serve a maximum of 1,200 students in grades preschool through twelve. The Borrower has
proposed to use the proceeds of the Series 2012 Notes to (i) finance the demolition of a
significant portion of the existing Upper School on the Borrower's campus and the
construction and equipping of a new Upper School on the same site, including the
rehabilitation and repurposing af the existing science facilities (collectively, the "Project");
(ii) fund one or more reserve funds, if necessary; (iii) pay capitalized interest on the Series
2012 Notes; and (iv) pay the costs of issuance of the Series 2012 Notes and other costs
related to the Project. The Project will be owned and operated by the Borrower.
Resolution 12-60 - Continued September 4, 2012
1.04. Pursuant to Minnesota Statutes, Section 471.59, as amended, by agreement
entered into through action of their governing bodies, two or more cities may jointly or
cooperatively exercise any power common to the contracting parties or any similar powers,
including those which are the same except for the territorial limits within which they may be
exercised. The agreement may provide for the exercise of such powers by one or more of
the participating governmental units on behalf of the other participating units. The City,
Minnetonka, and St. Louis Park are proposing to enter into a joint powers agreement (the
"Joint Powers Agreement") pursuant to which the City, as host city, will consent to the
issuance of the Series 2012 Notes by St. Louis Park and Minnetonka, as issuer cities, and
the financing of the Project by St. Louis Park and Minnetonka, and St. Louis Park and
Minnetonka will agree to issue ths Series 2012 Notes to finance the Project.
1.05. As a condition to the issuance of the Bonds, the City Council of the City is
required to: (i) conduct a public hearing in accordance with the requirements of the Act and
Section 147(fl of the Internal Revenue Code of 1986, as amended (the "Code") with
respect to the proposal to issue the Series 2012 Notes; and (iii) approve the Joint Pawers
Agreement.
Section 2. Required Actions.
2.01. The City Council wilt meet at 6:30 p.m. on Tuesday, October 2, 2012, to
canduct a public hearing on the Project, and the proposed issuance of the Series 2012
Notes by St. Louis Park and Minnetonka.
2.02. The City Manager is hereby authorized and directed to publish a notice of the
public hearing, in substantially the form attached hereto as EXHIBIT A to this resolution, in
the Sun-Post, the official newspaper and a newspaper of general circulation in the City.
The notice shall be published at least once at least fourteen (14) days prior to the date of
the public hearing.
2.03. The Borrower shall pay to the City any and all costs paid or incurred by the
City in connection with the Series 2012 Notes or the financing of the Project, whether or
not the financing is carried to completion, and whether or not the Series 2012 Notes or
operative instruments are executed and delivered.
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Shepar M. Harris, Mayo
ATTEST:
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Susan M. Virnig, City Clerk
Resolution 12-60 - Continued September 4, 2012
The motion for the adoption of the foregoing resolution was seconded by Member Freiberg
and upon a vote being taken thereon, the following voted in favor thereof: Clausen,
Freiberg, Harris, Pentel and Scanlon; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and his signature attested by the City Clerk.
Resolution 12-60 - Continued September 4, 2012
EXHIBIT A
NOTICE OF PUBLIC HEARING
CITY QF GOLDEN VALLEY, MINNES(aTA
NOTICE OF A PUBLIC HEARING TO BE CONDUCTED BY THE
CITY OF GOLDEN VALLEY, MINNESOTA WITH RESPECT TO THE ISSUANCE
OF REVENUE UBLIGATIONS BY THE CITIES OF ST. LOUIS PARK AND MINNETONKA
TO FINANCE THE CONSTRUCTION AND EQUIPPING BY BRECK SCHOOL OF
SCHOOL FACILITIES UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH
469.1651, AS AMENDED
NOTICE IS HEREBY GIVEN that the City Council of the City of Golden Valley,
Minnesota (the "City"), will hold a public hearing on Tuesday, October 2, 2012, at or after
6:30 p.m. at City Hall, located at 7800 Golden Valley Road, in the City, to consider a
proposal that the City grant host city approval to the issuance of revenue obligations (the
"Series 2012 Notes"), by the cities of St. Louis Park, Minnesota ("St. Louis Park") and
Minnetanka, Minnesota ("Minnetonka") in one or more series, under Minnesota Statutes,
Sections 469.152 through 469.1651, as amended (the "Act"), for the benefit of Breck
Schaol, a Minnesota nonprofit corporation (the "Borrower"). The Borrawer is located at
123 Ottawa Avenue North, Golden Valley, Minnesota, and has a Lower School, Middle
School, and Upper School, which can serve a maximum of 1,2Q0 students in grades
preschool through twelve. The proceeds of the Series 2012 Notes will be applied to the
following purposes: (i) finance the demolition of a significant portion of the existing Upper
School on the Borrower's eampus and the construction and equipping of a new Upper
School on the same site, including the rehabilitation and repurposing of the existing science
facilities (collectively, the "Project"); (ii) fund one ar more reserve funds, if necessary; (iii)
pay capitalized interest on the Series 2012 Notes; and (iv) pay the costs of issuance of the
Series 2012 Notes and other costs related to the Project. The anticipated maximum
aggregate prineipal amount of the proposed Series 2012 Notes will not exceed $13,000,000.
The Bonds will be special, limited obligations of St. Louis Park and Minnetonka, and
the Series 2012 Notes and interest thereon will be payable solely fram the revenues and
assets pledged to the payment thereof. No holder of any Series 2012 Notes will ever have
the right to compel any exercise of the taxing power of the City to pay the Series 2012
Notes or the interest thereon, nor to enforce payment against any property of the City. The
Series 2012 Notes are to be payable solely from revenues and security provided by the
Borrower to St. Louis Park and Minnetonka and pledged to the payment of the Series 2012
Notes. Before issuing the Series 2012 Notes, St. Louis Park will enter into an agreement
with the Borrower and Minnetonka will enter into an agreement with the Borrower, whereby
the Borrower will be obligated to make payments at least sufficient at all times to pay the
principal of and interest on the Series 2012 Notes when due.
Anyone desiring to be heard during this public hearing will be afforded an
opportunity to do so.
Dated: September 20, 2012
CITY OF GOLDEN VALLEY, MINNESOTA
/s/Susan M. Virnig, City Clerk