RES 26-50CITY OF ELK RIVER, MINNESOTA
RESOLUTION NO.26-50
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
APPROXIMATELY $7,690,000 GENERAL OBLIGATION TAX
ABATEMENT BONDS, SERIES 2026A
BE IT RESOLVED by the City Council (the "Council") of the City of Elk River, Sherburne County,
Minnesota (the "City"), as follows:
Bonds Authorized.
(a) The City has determined to finance various public improvements, including the
construction of a new liquor store (the "Project").
(b) Under Minnesota Statutes, Chapter 475, as amended, and Sections 469.1812
through 469.1815, as amended (collectively, the "Act"), the City is authorized to grant a property
tax abatement on specified parcels in order to pay for all or part of the cost of financing or providing
public infrastructure, help acquire or construct public facilities, provide employment opportunities,
and provide access to services for residents of the City.
(c) It is necessary and expedient to the sound financial management of the affairs of
the City for the City to issue general obligation bonds, pursuant to the Act, to provide financing for
the Project.
(d) Following a public hearing to be held on August 17, 2026, the City Council will
consider a resolution (the "Abatement Resolution") approving a property tax abatement (the
"Abatements") for certain property in the City (the "Abatement Parcels") over a period of years,
in an amount sufficient to pay the principal amount of and a portion of the interest on bonds issued
to finance a portion of the Project (the "Abatement Project"). If approved, the Abatements will be
pledged to the repayment of the Bonds.
Issuance of Bonds.
(a) The City Council finds it necessary and expedient to the sound financial management of
the affairs of the City to issue its General Obligation Tax Abatement Bonds, Series 2026A (the "Bonds"),
in the proposed aggregate principal amount of $7,690,000, pursuant to the Act to provide financing for the
Project.
(b) The City is authorized by Section 475.60, subdivision 2(9) of the ct to negotiate
the sale of the Bonds, it being determined that the City has retained an independent municipal
advisor in connection with such sale. The actions of the City staff and municipal advisor in
negotiating the sale of the Bonds are ratified and confirmed in all respects.
3. Sale of Bonds. To provide funds to finance the Project, the City will issue and sell the
Bonds in the proposed aggregate principal amount of $7,690,000. The principal amount of the Bonds is
subject to adjustment in accordance with the official Terms of Proposal to be prepared in connection with
the offering and the sale of the Bonds.
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4. Authority of Municipal Advisor. Ehlers and Associates, Inc. (the "Municipal Advisor") is
authorized and directed to negotiate the sale of the Bonds. The City Council will meet on Tuesday,
September 8, 2026, or another date selected by City staff, to consider proposals on the Bonds and take any
other appropriate action with respect to the Bonds.
5. Authort of Bond Counsel. The law firm of Kutak Rock LLP, as bond counsel to the City
("Bond Counsel"), is authorized to act as bond counsel and to assist in the preparation and review of
necessary documents, certificates and instruments relating to the Bonds. The officers, employees and agents
of the City are hereby authorized to assist Bond Counsel in the preparation of such documents, certificates,
and instruments.
6. Covenants. In the resolution awarding the sale of the Bonds, the City Council will set forth
the covenants and undertakings required by the Act.
7. Official Statement. In connection with the sale of the Bonds, the officers or employees of
the City are authorized and directed to cooperate with the Municipal Advisor and participate in the
preparation of an official statement for the Bonds and to deliver it on behalf of the City upon its completion.
8. Reimbursement. The Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
"Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior
expenditures will not be deemed spent unless certain requirements are met. The City expects to incur
certain expenditures with respect to the Project that may be financed temporarily from City funds on hand
other than bonds, and reimbursed from the proceeds of the tax-exempt Bonds in a principal amount of up
to $7,690,000.
8.02 The City has determined to make a declaration of official intent (the "Declaration") to
reimburse certain costs with respect to the Project from proceeds of the Bonds in accordance with the
Reimbursement Regulations.
8.03 All reimbursed expenditures will be capital expenditures, costs of issuance of the Bonds,
or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement
Regulations.
8.04 This Declaration has been made not later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of the Bonds, except
for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of
$100,000 or 5% of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess
of 20% of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City
to finance the project for which the preliminary expenditures were incurred. The term "preliminary
expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
8.05 This Declaration is an expression of the reasonable expectations of the City based on the
facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for
the Project and the principal amount of the Bonds described herein are consistent with the City's budgetary
and financial circumstances. No sources other than proceeds of the Bonds to be issued by the City are, or
are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to
the City's budget or financial policies to pay such expenditures.
8.06 This Declaration is intended to constitute a declaration of official intent for purposes of the
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Reimbursement Regulations.
Approved this July 20, 2026, by the City Council of the City of Elk River, Minnesota.
CITY OF ELK RIVER,
MINNESOTA
ATTEST:
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City C erk
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