00-006 RESRESOLUTION 00-06
Resolution Giving Preliminary Approval to and Calling a Public Hearing
on a Proposed Housing Program and Housing Facilities Projects and the
Proposed Issuance of Revenue Bonds therefor by the City of Elk River,
Minnesota, Pursuant to a Joint Powers Agreement to be Entered into in
Connection Therewith
WHEREAS, the City Council of the City of Elk River, Minnesota (the "City") has
received a request from the nonprofit corporations listed in Exhibit A (such entities collectively
referred to as the "Borrowers"), for the City, or the other Participating Jurisdiction described
below if so determined by the City and the other Participating Jurisdiction, to issue its revenue
bonds (the "Bonds") in an aggregate principal amount not to exceed $10,000,000 pursuant to the
Municipal Housing Programs Act, Minnesota Statutes, Chapter 462C, as amended (the "Housing
Programs Act," or the "Revenue Bond Act"); and
WHEREAS, the Borrowers have represented to the City that a portion of the proceeds of
the Bonds (the "Evans Park Portion") would be loaned to Evans Park, Inc., a Minnesota nonprofit
corporation, to pay costs of the Evans Park Project described in Exhibit B (the "Evans Park
Project"), and in accordance with the Housing Program developed therefor (the "Housing
Program"), substantially in the form attached hereto as Exhibit E, all pursuant to the provisions
of the Housing Programs Act; and
WHEREAS, the Borrowers have represented to the City that proceeds of the Bonds not
constituting a part of the Evans Park Portion would be applied to finance or refinance costs of
acquiring, constructing, equipping and furnishing certain senior housing and nursing facilities of
the other Borrower located in the other Participating Jurisdiction (defined below) (and referred
to, together with the Evans Park Project, as the "Projects"); and
WHEREAS, the Borrowers have requested that the City enter into a Joint Powers
Agreement with the jurisdiction listed in Exhibit C (such jurisdiction referred to with the City as
the "Participating Jurisdictions") in connection with the proposed issuance of the Bonds; and
WHEREAS, the Borrowers have represented to the City that Minnesota Statutes, Section
471.59 (the "Joint Powers Act" and, taken collectively with the Revenue Bond Act, sometimes
referred to together as the "Acts"), provides that two or more governmental units, by agreement
entered into through action of their governing bodies, may jointly or cooperatively exercise any
power common to the contracting parties, and may provide for the exercise of such power by one
of the participating governmental units on behalf of the other participating units;
WHEREAS, the Borrowers have represented to the City that, in connection with revenue
bonds issued under the Housing Programs Act, Section 462C. 14, Subd. 3 provides for joint
action between cities pursuant to the Joint Powers Act, and contracts for housing programs and
development of financial services for housing between a city and another city or other political
subdivision or state agency;
WHEREAS, the Borrowers have represented to the City that the Participating
Jurisdictions are "governmental units" under the Joint Powers Act;
WHEREAS, the Borrowers have represented to the City that each of the Participating
Jurisdictions is a "city" under the Housing Programs Act with power to issue bonds under the
Housing Programs Act;
WHEREAS, the Borrowers have represented to the City that pursuant to Minnesota
Statutes, Section 462C.04, and Section 147(0 of the Internal Revenue Code of 1986, as
amended, it is necessary for the City to conduct a public hearing before the City issues the
Bonds;
WHEREAS, the Borrowers have agreed to reimburse the City for the cost of publication
of notice of the hearing in the official newspaper of the City, together with any legal fees to be
incurred by the City and any loss or expense of the City for its inability (due to the issuance of
the Bonds) to designate the City's bonds in 2000 as "qualified tax-exempt" obligations, as well as
any other costs incurred by the City related to the Joint Powers Agreement; and
NOW, THEREFORE, be it resolved by the City Council of the City of Elk River,
Minnesota, that:
1. The City Council shall hold a public hearing on the Housing Program and the
issuance of the Bonds on Monday, January 24, at 6:00 o'clock P.M. at the City Hall, 13065
Orono Parkway, Elk River, Minnesota. Publication of a legal notice in connection therewith,
substantially in the form attached hereto as Exhibit D, is hereby ratified and confirmed.
2. The Housing Program is hereby given preliminary approval and the proposal to
finance and refinance the Projects is hereby given preliminary approval, subject to holding a
public hearing thereon and the Council's adoption in its sole and absolute discretion of a
definitive Bond Resolution.
3. The issuance of one or more series of revenue bonds (the "Bonds"), pursuant to a
Joint Powers Agreement (the "Joint Powers Agreement") between the City and the other
Participating Jurisdiction, in substantially the form now on file in the offices of the City and
presented to this meeting, and all pursuant to the Acts, the Bonds to be in an aggregate principal
amount not to exceed approximately $10,000,000, and to be issued to finance and refinance the
Projects, is hereby approved, subject to holding a public hearing thereon and the Council's
approving in its sole and absolute discretion a definitive Bond Resolution.
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4. Evans Park, Inc., the other Borrower, Dorsey & Whitney LLP, as bond counsel,
officers of the City, and other City representatives and officials, together with officers of the
other Joint Powers Jurisdiction, are also authorized to initiate the preparation of such loan
agreements, indentures and related documents as may be necessary or appropriate to the
financing and refinancing of the projects to be financed and refinanced from the proceeds of the
Bonds so that, when and if this Council gives its final approval thereto, such financing and
refinancing may be carried out expeditiously.
5. In no event shall the Bonds ever be payable from or charged upon any funds of
the City other than amounts payable under the revenue agreements which are to be pledged to the
payment thereof; no holder of the Bonds shall ever have the right to compel the exercise of the
taxing power of the City to pay the Bonds or the interest thereon, nor enforce the payment
thereof against any property of the City other than the City's interest in the Project facilities; the
Bonds shall not constitute a general or moral obligation of the City or a charge, lien or
encumbrance, legal or equitable, upon any property of the City; and the Bonds do not constitute
an indebtedness of the City within the meaning of any constitutional, statutory, or charter
limitation.
Adopted this 10 day of January ,20Q0.
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EXHIBIT A
(List of Borrowers)
Evans Park, Inc., a Minnesota nonprofit corporation.
St. Therese Home, Inc., a Minnesota nonprofit corporation.
A-1
EXHIBIT B
(Project Description)
The Evans Park Project consists of the following:
The acquisition, construction, equipping and furnishing of approximately 20 units of
rental senior housing facilities, to be located adjacent to the existing assisted-living facility of
Evans Park, Inc., at Joplin Street and U.S. Highway 10, in Elk River, Minnesota, and to be
owned by Evans Park, Inc.
B-1
EXHIBIT C
(Participating Jurisdictions)
City of Elk River, Minnesota.
City of New Hope, Minnesota.
C-1