16-03 - 04-12 - Approve Lease for Community Center Resolution 16-03 April 12, 2016
Commissioner Harris introduced the following resolution and moved its adoption:
RESOLUTION APPROVING THE ISSUANCE OF LEASE REVENUE OBLIGATIONS
(COMMUNITY CENTER PROJECT), SERIES 2016
BE IT RESOLVED by the Board of Commissioners of the Housing and
Redevelopment Authority of the City of Golden Valley (the "Authority"), as follows:
WHEREAS, the Authority is authorized by Minnesota Statutes, Section 469.012,
subdivision 1 h, to undertake redevelopment projects; and
WHEREAS, the Authority is authorized by said section and Section 471.64 to make
any of its land in a redevelopment project available for use by public agencies by sale,
lease or otherwise; and
WHEREAS, the Authority proposes to undertake a project (the "Project") consisting
of the construction of a new community center facility located adjacent to the existing
community center on land in the City of Golden Valley, Minnesota (the "City"), and
WHEREAS, it is proposed that the Authority issue its lease revenue obligations (the
"Obligations") pursuant to Minnesota Statutes, Section 469.033 for the purpose of financing
all or a portion of the costs of the Project; and
WHEREAS, the Obligations will be payable from lease payments received under a
Lease Purchase Agreement (the "Lease"), between the Authority and the City, and no
Bonds shall constitute a debt of the Authority within the meaning of any constitutional or
statutory limitation nor shall the full faith, credit and taxing powers of the Authority be
pledged thereto; and
WHEREAS, under the Lease, the City is to pay to the Authority sufficient money
each year to pay the principal of, premium, if any, and interest on the Obligations, and the
City is to provide the cost of maintaining the Project in good repair, the cost of keeping the
Project properly insured, and any payments required for taxes and any expenses incurred
by the Authority in connection with the Project; and
WHEREAS, the Authority understands that the City plans to seek additional funding
including donations to help defray their costs; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Authority, as follows:
Section 1 Authorization and Sale.
1.1 This Board acknowledges, finds, determines and declares that it is in the best
interests of the Authority to undertake the Project and to issue the Obligations in an amount
not to exceed $18,500,000.
Resolution 16-03 - Continued April 12, 2016
1.2 Sale. The Authority has retained Springsted Incorporated ("Springsted") as
independent financial advisor in connection with the sale of the Obligations. In consultation
with staff of the Authority and City, Springsted has recommended the Authority negotiate
the sale of the Obligations with an underwriter (the "Underwriter"), and that the Underwriter
be chosen through a competitive selection process. The Chair and Authority Director are
authorized to proceed with the selection of an underwriter through a competitive selection
process and approve such other matters relating to the terms and the timing of sale thereof
as may be necessary and shall oversee the preparation of an Official Statement and other
offering documents to be negotiated with the Underwriter. The law firm of Dorsey &
Whitney LLP, in Minneapolis, Minnesota, is hereby appointed as bond counsel for purposes
of this issue of Obligations.
Section 2. Lease Agreement; Other Documents.
Bond counsel is authorized to prepare forms of the Lease, ground lease and any other
documents necessary in connection with the issuance of the Obligations (the
"Documents"). The officers of the Authority are hereby authorized to do all acts and things
required of them by or in connection with this Resolution and the Lease for the full, punctual
and complete performance of all the terms, covenants and agreements contained in the
Obligations, the Lease and this Resolution. The Chair and Authority Director are authorized
to approve the execution and delivery of the Documents and the Obligations. The Chair
and Authority Director are authorized to approve the Official Statement by which the
Underwriter will offer the Obligations for sale to the public. The Chair and Authority Director
are also authorized and directed to execute such other instruments as may be required to
give effect to the transactions herein contemplated.
-0�,I�
St ven T. Schmidgall, Chair
ATTEST:
14
Timo h J. Cruikshank, Executive Director
The motion for the adoption of the foregoing resolution was seconded by Commissioner
Clausen, upon a vote being taken thereon, the following voted in favor thereof: Schmidgall,
Clausen, Fonnest, Harris and Snope; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Chair and
his signature attested by the Executive Director.