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15-101 - 12-15 - Financing of Liberty Crossing Project Resolution 15-101 December 15, 2015 Member Snope introduced the following resolution and moved its adoption: RESOLUTION RELATING TO THE FINANCING OF THE LIBERTY CROSSING PROJECT AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the "City"), as follows: 1. Recitals. (a) The Internal Revenue Service has issued Section 1.150-2 of the Income Tax Regulations (the "Regulations") dealing with the issuance of bonds all or a portion of the proceeds of which are to be used to reimburse the City for project expenditures made by the City prior to the date of issuance. (b) The Regulations generally require that the City make a declaration of its official intent to reimburse itself for such prior expenditures out of the proceeds of a subsequently issued series of bonds within 60 days after payment of the expenditures, that the bonds be issued and the reimbursement allocation be made from the proceeds of such bonds within the reimbursement period (as defined in the Regulations), and that the expenditures reimbursed be capital expenditures or costs of issuance of the bonds. (c) The City desires to comply with requirements of the Regulations with respect to the projects hereinafter identified. 2. Official Intent Declaration. (a) The City proposes to make original expenditures with respect to a project consisting of a five-story apartment building with approximately 187 apartments and approximately 55 townhomes, plus parking, landscaping, utilities and certain other improvements (the "Project") pursuant to Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District (Redevelopment), Winnetka Avenue North & Medicine Lake Road No. 1, prior to the issuance of reimbursement bonds, and reasonably expects to issue reimbursement bonds for the Project, in one or more series, in an amount not to exceed $6,302,695. (b) Other than (i) de minimis amounts permitted to be reimbursed pursuant to Section 1.150-2(0(1) of the Regulations or (ii) expenditures constituting preliminary expenditures as defined in Section 1.150-2(0(2) of the Regulations, the City will not seek reimbursement for any original expenditures with respect to the foregoing Project paid more than 60 days prior to the date of adoption of this resolution. All original expenditures for which reimbursement is sought will be capital expenditures or costs of issuance of the respective reimbursement bonds. Resolution 15-101 -2- December 15, 2015 3. Budgetary Matters. As of the date hereof, there are no City funds reserved, pledged, allocated on a long term basis or otherwise set aside (or reasonably expected to be reserved, pledged, allocated on a long term basis or otherwise set aside) to provide permanent financing for the original expenditures related to the Project, other than pursuant to the issuance of the respective reimbursement bonds. Consequently, it is not expected that the issuance of the respective reimbursement bonds will result in the creation of any replacement proceeds. 4. Reimbursement Allocations. The City's Finance Director shall be responsible for making the "reimbursement allocations" described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the respective reimbursement bonds to reimburse the source of temporary financing used by the City to make payment of the original expenditures relating to the Project. Each reimbursement allocation shall be made within 30 days of the date of issuance of the reimbursement bonds, shall be evidenced by an entry on the official books and records of the City maintained for the reimbursement bonds and shall specifically identify the original expenditures being reimbursed. „4/1She and M. Harris, ayor ATTEST: 'At_ I ris 'ne A. Luedke, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Fonnest and upon a vote being taken thereon, the following voted in favor thereof: Harris, Snope, Fonnest and Schmidgall and the following voted against the same: Clausen whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signature attested by the City Clerk.