Loading...
02-9259r I I I 81 RESOLUTION NO. 9259 RESOLUTION GIVING PRELIMINARY APPROVAL TO THE FINANCING OF A PROJECT TO BE UNDERTAKEN BY ACADEMY OF HOLY ANGELS PURSUANT TO MINNESOTA STATUTES, SECTION 469.154, AND AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT AND THE PREPARATION OF NECESSARY DOCUMENTS WHEREAS, the City of Richfield, Minnesota (the "City"), is authorized by Minnesota. Statutes, Sections 469.152 to 469.165, as amended the ("Act), to issue revenue bonds to finance, in whole or in part, the costs of the acquisition, construction, reconstruction, improvement, betterment, or extension of a project to be owned by a contracting party; and WHEREAS, a "project" includes any properties, real or personal, used or useful in connection with a revenue producing enterprise and, in the case of an organization primarily engaged in educational activities as a secondary school, may also include the payment and discharge of all or any part of the outstanding indebtedness of the contracting party previously incurred in the acquisition or betterment of its existing facilities, including accrued interest and prepayment premium; and WHEREAS, the City Council of the City has received from the Academy of Holy Angels, a Minnesota nonprofit corporation (the "Borrower"), a proposal that the City undertake to finance a project to be owned and operated by the Borrower through the issuance by the City of revenue bonds pursuant to the Act; and WHEREAS, the project proposed to be financed with revenue bonds to be issued by the City is comprised of: (i) the renovation of, and the construction of additions to, the Academy of Holy Angels High School (the "Facility") owned by the Borrower and located at 6600 Nicollet Avenue in the City; (ii) the acquisition and installation of equipment in the Facility; and (iii) the refunding of outstanding indebtedness of the Borrower previously incurred to finance the acquisition and betterment of the Facility (collectively, the "Project"); and WHEREAS, as required by the terms of Section 469.154 of the Act, a notice of public hearing stating the time and place of the public hearing and stating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project was published in the official newspaper of the City and newspaper of general circulation in the City not less than fourteen days and not more than thirty days prior to the public hearing; and WHEREAS, a public hearing on the proposal to undertake and finance the Project was held on November 26, 2002; and WHEREAS, the notice and public hearing satisfy the public approval requirements set forth in Section 147(f) of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. The Project is hereby given preliminary approval by the City and the issuance of revenue bonds or obligations (the "Obligations") for such purposes and in an amount not to exceed $10,000,000 is hereby approved, subject to the approval of the Project by the Minnesota Department of Trade and Economic Development ("DTED"), and subject to the mutual agreement of the City, the Borrower, and the initial purchaser or purchaser of the Obligations as to the details of the Obligations and provisions for their payment. In all events, it is understood, however, that the Obligations of the City shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City, and the Obligations, when, as, and if issued, shall recite in substance that the Obligations, including interest thereon, are payable solely from the revenues received from the Project and other property or security I expressly pledged to the payment thereof, and shall not constitute a pecuniary obligation of the City or a charge against its general credit or taxing powers. The Obligations shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2. Based solely on representations made to the City by the Borrower, it is hereby found and determined that: (a) the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises within the meaning of Subdivision 2(b) of Section 469.153 of the Act; (b) the Project furthers the purposes set forth in the Act; (c) the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project; (d) the Project is expected to create five additional new jobs in addition to the existing 250 jobs; and (e) no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. 3. In accordance with Section 469.154 of the Act, the City Manager of the City is hereby authorized and directed to submit the application for approval of the Project to DTED. The City Manager and other officers, employees and agents of the City are hereby authorized to provide DTED with any information needed for this purpose, and the City Manager is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project. 4. The law firm of Kennedy & Graven, Chartered is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and the Obligations to be issued in connection therewith. The City Manager and other I officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 5. In accordance with Section 469.154, subdivision 7, of the Act, the Mayor and other officers, employees and agents of the City are hereby authorized and directed to encourage the Borrower to provide employment opportunities to economically disadvantaged or unemployed individuals. Such individuals may be identified by such mechanisms as are available to the City such as a first source agreement in which the Borrower agrees to use a designated State of Minnesota employment office as a first source for employment recruitment, referral, and placement. 6. The Borrower has agreed to pay any and all costs paid or incurred by the City in connection with the Project and the issuance of the Obligations whether or not the Project is approved by DTED, whether or not the Project is carried to completion, and whether or not the Obligations and related documents are executed and delivered. 7. All commitments of the City expressed herein are subject to the cond ition that by December 1, 2003, the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the Obligations, the loan agreement, and the other instruments and proceedings relating to the Obligations 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 Obligations are not sold within such time, this resolution shall expire and be of no further effect. 8. The adoption of this Resolution does not constitute a guaranty or firm commitment I that the City will issue the Obligations as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Obligations, or issue the Obligations in an amount less that the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Obligations, or to issue the Obligations in an amount less than I I I -";%;+hJ.~;':'f:/.L.::C'> '--J. ''''.5/. the amount referred to in paragraph 1 hereof, or should the parties to the transaction be unable to reach agreement as to th~,t~rDJ~ and cC>l'lditions of any of the documents required for the transaction.~)i'!';~')~'~k'""V, '. ','",'," 9. In anticipation of the issuance of the Obligations to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Borrower is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project as Borrower considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Obligations if and when delivered but otherwise without liability on the part of the City. 10. This resolution shall take effect immediately upon adoption. Adopted by the City Council of the City of Richfield, Minnesota, this 26th day of November, 2002. Attest: