06-12 Resolution No. 11508
RESOLUTION NO. 11508
RESOLUTION CONSENTING TO AND APPROVING THE ISSUANCE
BY THE CITY OF BETHEL OF ITS CONDUIT REVENUE
OBLIGATIONS AND TAKING OTHER
ACTIONS WITH RESPECT THERETO
WHEREAS
, the City of Richfield, Minnesota (the “City”) is a home rule charter city and
political subdivision duly organized and existing under its Charter and the laws of the State of
Minnesota; and
WHEREAS
, pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as
amended (the “Act”), the City is authorized to carry out the public purposes described in the Act
by providing for the issuance of revenue bonds to provide funds to finance revenue producing
enterprises, whether or not operated for profit; and
WHEREAS
, Minnesota Statutes, Section 471.656, as amended, authorizes a
municipality to issue obligations to finance the acquisition or improvement of property located
outside of the corporate boundaries of such municipality if the governing body of the city in
which the property is located consents by resolution to the issuance of such obligations; and
WHEREAS
, Partnership Academy Association, a Minnesota nonprofit corporation (the
“Company”), has requested that the City of Bethel, Minnesota (the “City of Bethel”) issue its
revenue bonds, in one or more series, as taxable or tax-exempt obligations (the “Bonds”), in a
principal amount not to exceed $15,000,000, and loan the proceeds thereof to the Company for
the purposes of (i) financing the acquisition of approximately 1.79 acres of land located at 6500
South Nicollet Avenue in the City, the demolition of existing buildings thereon, and the
construction and equipping of an approximately 40,022 square foot facility thereon (the
“Project”) for use as a public charter school for students in pre-kindergarten through eighth
grade; (ii) financing capitalized interest during the construction of the Project, if necessary; (iii)
funding any required reserves; and (iv) paying costs of issuance of the Bonds; and
WHEREAS
, the Project will be owned by the Company and leased to and operated by
Partnership Academy, Inc., a Minnesota nonprofit corporation and public charter school (the
“School”), pursuant to a lease agreement; and
WHEREAS
, Section 147(f) of the Internal Revenue Code of 1986, as amended (the
“Code”), and regulations promulgated thereunder require that prior to the issuance of the Bonds,
the City Council of the City (the “City Council”) consent to the issuance of the Bonds by the City
of Bethel after conducting a public hearing thereon preceded by publication of a notice of public
hearing (in the form required by Section 147(f) of the Code and applicable regulations) in a
newspaper of general circulation within the City at least fourteen (14) days prior to the public
hearing date; and
WHEREAS
, a notice of public hearing (the “Public Notice”) was published at least
fourteen (14) days before the regularly scheduled meeting of the City Council on the date hereof
in the Sun Current, the official newspaper of and a newspaper of general circulation in the City,
with respect to the required public hearing under Section 147(f) of the Code; and
WHEREAS
, on the date hereof, the City Council conducted a public hearing at which a
reasonable opportunity was provided for interested individuals to express their views, both orally
and in writing, on the following: (i) consent to the issuance of the Bonds by the City of Bethel
pursuant to the requirements of Section 147(f) of the Code and the regulations promulgated
525247v1 JAE BE250-16
thereunder; and (ii) approval of the issuance of the Bonds by the City of Bethel to finance the
Project; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RICHFIELD, MINNESOTA, AS FOLLOWS:
1. The City Council finds that it is in the best interest of the City to approve the issuance
of the Bonds by the City of Bethel to finance the Project and hereby consents to the
issuance of the Bonds by the City of Bethel for the purposes set forth above in an
amount not to exceed $15,000,000.
2. The Bonds are to be issued by the City of Bethel pursuant to the Act. The Bonds will
constitute special, limited obligations of the City of Bethel secured solely by revenues
derived from the operation of the Project and other security provided by the Company
and the School, including but not limited to a mortgage on the land and buildings
comprising the Project. The Bonds will not constitute a general or moral obligation of
the City or the City of Bethel and will not be secured by any taxing powers of the City or
the City of Bethel.
3. The Mayor and the City Manager are hereby authorized and directed to execute and
deliver any documents deemed necessary to fulfill the intentions of this resolution.
4. The Mayor and City Manager and other officers, employees, and agents of the City
are hereby authorized and directed to prepare and furnish to bond counsel and the
original purchaser of the Bonds certified copies of all proceedings and records of the
City relating to the approval of the issuance of the Bonds, including a certification of
this resolution.
5. The Company will, upon demand, reimburse the City for costs paid or incurred by the
City in connection with this resolution.
6. This resolution shall be in full force and effect from and after its passage.
Approved by the City Council of the City of Richfield, Minnesota this 12th day of June,
2018.
Pat Elliott, Mayor
ATTEST:
Eliza6et anHoose, City Clerk
Resolution No. 11508