05-14 Resolution No. 12209RESOLUTION NO. 12209
RESOLUTION CONSENTING TO AND APPROVING THE
ISSUANCE BY THE CITY OF DEEPHAVEN OF ITS CHARTER
SCHOOL LEASE 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, SHPA ABC, a Minnesota nonprofit corporation and an organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the
“Company”), has requested that the City of Deephaven, Minnesota (the “City of Deephaven”)
issue its revenue bonds, in one or more series, as taxable or tax-exempt obligations (the
“Bonds”), in a principal amount not to exceed $29,000,000, and loan the proceeds thereof to the
Company for the purpose of (i) financing the acquisition, construction, reconstruction,
improvement, betterment or extension of an approximately 62,000 square foot charter school
facility located at 14101 Southcross Drive in the City of Burnsville (the “Burnsville Facility”); (ii)
refinancing the Issuer’s Charter School Lease Revenue Bonds (Seven Hills Preparatory
Academy Project), Series 2017, issued to finance the acquisition, construction, improvement,
and equipping of an approximately 75,000 square foot public charter school for grades
kindergarten through 8, located at 1401 West 76th Street, Richfield, Minnesota (the “Richfield
Facility”; together with the Burnsville Facility, the “Facilities”); (iii) finance certain improvements
to the Richfield Facility; (iv) financing capitalized interest during the construction of the Project, if
necessary; (v) funding any required reserves; and (vi) paying costs of issuance of the Bonds
(collectively, the “Project”); and
WHEREAS, the Facilities will be owned by the Company and leased to and operated by
leased to and operated by Seven Hills Preparatory Academy (the “School”), a Minnesota
nonprofit corporation and a public charter school sponsored by the Friends of Education,
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
by the City of Deephaven, the City Council of the City (the “City Council”) consent to the
issuance of the Bonds 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 seven (7) days prior to
the public hearing date; and
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WHEREAS, a notice of public hearing was published at least seven (7) 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
Deephaven pursuant to the requirements of Section 147(f) of the Code and the regulations
promulgated thereunder; and (ii) approval of the issuance of the Bonds by the City of Deephaven
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 Deephaven to finance the Project and hereby consents to
the issuance of the Bonds by the City of Deephaven for the purposes set forth above in an
amount not to exceed $29,000,000.
2. The Bonds are to be issued by the City of Deephaven pursuant to the Act. The
Bonds will constitute special, limited obligations of the City of Deephaven 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
Deephaven and will not be secured by any taxing powers of the City or the City of Deephaven.
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 14th day of May,
2024.
Mary B. Supple, Mayor
ATTEST:
Kelly Wynn, Interim City Clerk