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RES 14-13 Extract of Minutes of a Meeting of the City Council of the City of Elk River, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Elk River, Minnesota, was duly held at the ("try Hall in said City on 'Monday, April 21, 2014 at 6:00 P-M, The following members were present:MAYOR JOHN J. DIETZ, COUNCILMEKBERS STEWART WILSON, BARBARA BURANDT, AND MATT WESTGAARD and the following were absent: CO-UNCILMEMBER PAUL MOTIN 1, Member WESTGAARD introduced the following resolution and moved its adoption: Resolution No. 14- 11 Resolution Giving Host Approval to the Issuance of Charter School Lease Revenue Bonds Under Minnesota Statutes, Sections 469.152 Through 469.1655 (Spectrum High School Project) The motion for the adoption of the foregoing resolution was duly seconded by tnetnbcr B _, and after ful.1 discussion thereof and upon vote being taken thereon, the following voted in favor thereof: MAYOR DIETZ, COUNCILMEMBERS WILSON, BURANDT, AND WESTGAARD and the fol-lmvlmig voted against the sane: NONE whereupon said resolution was declared duly passed and adopted, 440886vl JSB EL185-19 Resolution Giving Host Approval to the Issuance of Charter School Lease Revenue Bonds Under Minnesota Statutes, 'Sections 469.152 Through 469.1655 (Spectrum High School Project) Bf� IT RESOLVED, by the City Council (the "Council") of the City of Elk River, Minnesota (the "City") as follows: Section 1. General Recitals. The purpose of Minnesota Statutes, Sections 469.152 through 469.1655 as amended, (the "Act"), is, among other things, to promote the welfare of the State of Minnesota (the "State") by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment. Section 2. Description of the Project. (a) Spectrum Building Company (the "Borrower"), a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") has proposed that the County of Anoka, Minnesota (the "Issuer") issue revenue bonds under the Act, in one or more series, in an aggregate amount not to exceed $4,250,000 (the "Bonds") to finance (i) the acquisition, construction, and improvements of the Borrower's charter school facilities located at 11044 Industrial Circle NE in the City consisting of approximately 23,740 square feet of improvements, including gymnasium and classroom facilities and associated infrastructure improvements (the "Facility"); (ii) the funding of a debt service reserve fund; (iii) payment of a portion of the interest on the Bonds; and (iv) payment of the costs of issuing the Bonds (collectively, the "Project"). The Facility will be owned by the Borrower and leased to and operated by the Spectrum High School, a Minnesota nonprofit corporation (the "School"). (b) The City has been advised that the Bonds or other obligations, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City or the Issuer, except the Project and the revenues to be derived from the Project. Such Bonds or obligations will not be a charge against the general credit or taxing powers of the City or the Issuer, but is payable from sums to be paid by the Borrower Pursuant to a revenue agreement. Section 3. Recital of Representations Made by the Borrower. (a) The Borrower has agreed to pay any and all costs incurred by the City in connection with the issuance of the Bonds, whether or not such issuance is carried to completion. (b) The Borrower has represented to the City that no public official of the City has either a direct or indirect financial interest in the Project not will any public official either directly or indirectly benefit financially from the Project. Section 4, Public Hearing. (a) As required by the Act and Section 147(f) of the Code a Notice of Public Hearing was published in the City's official newspaper and newspaper of general circulation, for a public hearing on the proposed issuance of the Bonds and the proposal to undertake and finance the Project. 2 440886v1 JSB EL185-19 (b) As required by the Act and Section 147(1) of the Code the City Council has on this same date held a public hearing on the issuance of the Bonds and the proposal, to undertake and finance the portion of the Project located within the jurisdictional lititits of the City, at which all those appearing who desired to speak were heard and written comments were accepted. Section 5. Host Approval. The City Council hereby gives the host approval required under Section 147(f) of the Code and, pursuant to Minnesota Statutes §471.656, Subd. 2(2), the City Council hereby consents to the issuance of the Bonds. Section 6. Approval of PILOF Payment. In connection with the approval granted herein to the issuance of the Bonds, and the anticipated exemption of the Facility, from property taxes due to the acquisition of the Facility by the Borrower, the City Council hereby accepts, as a condition to the approval granted by this Resolution, paynient of$56,043.20 in accordance with an Agreement for Payment in 1.ieu of Fees to be executed by the Borrower and the City (the "PILOF Agreement"). Section 7. Authorization to Execute Agreements. The form of the proposed PILOT{ ,Agreement is hereby approved in substantially the form presented to the City Council, together with such additional details thereil as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary, and appropriate and approved by the C'ity's Bond Counsel prior to the execution of the PI1.OF Agreement, and the Mayor and City Clerk of the City are authorized to execute the PILL F Agreement in the name of amid on behalf of the City and such other documents and certificates as the City's Bond Counsel considers appropriate in connection with the issuance of the Bonds. In the event of the absence or disability of the Mayor or C1q, Clerk such officers of the (""It-y as, in the opinion of the City Attornev, may act on their behalf, shall without further act or authorization of the City Council do all things and execute all instruments and documents required to be done or executed by such absent or disabled officers. The execution of any instrument by the appropriate officer or officers of the City herein authorized sliall be conclusive evidence of the approval of such documents and certificates in accordance with the terms hereof. 11n, I w Dietz, ayor ATI EST: Tina Allard, City Clerk 3 440886vl JSB EL185-19