HomeMy WebLinkAboutCity Council Resolution 2014-100follows:
CITY OF PLYMOUTH, MINNESOTA
RESOLUTION NO. 2014-100
RESOLUTION CONSENTING TO AND APPROVING THE ISSUANCE BY THE
CITY OF NEW HOPE, MINNESOTA OF REVENUE OBLIGATIONS TO
FINANCE A PROJECT UNDER MINNESOTA STATUTES, SECTIONS 469.152
THROUGH 469.1655, AS AMENDED; APPROVING AND AUTHORIZING THE
EXECUTION OF A COOPERATIVE AGREEMENT; AND APPROVING AND
AUTHORIZING CERTAIN ACTIONS RELATED THERETO
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as
Section 1. Background.
1.01. Statutory Authorization. The City is authorized by Minnesota Statutes, Sections 469.152
through 469.1655, as amended (the "Act"), to issue revenue obligations to finance, in whole or in part,
the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of a
"project," defined in the Act, in part, as any properties, real or personal, used or useful in connection with
a revenue producing enterprise, or any combination of two or more such enterprises engaged in any
business.
1.02. The Project. Homeward Bound, Inc., a Minnesota nonprofit corporation (the
"Borrower"), owns and operates the following housing and care facilities for the disabled located at 4300
Lake Drive, Robbinsdale, Minnesota; 3300 Fountain Lane, Plymouth, Minnesota; 315 Saratoga Lane
North, Plymouth, Minnesota; 13522 Sunset Trail, Plymouth, Minnesota; 305 Althea Lane, Hopkins,
Minnesota; 4213 Zealand Avenue North, New Hope, Minnesota; 3009 Atwood Avenue, Minnetonka,
Minnesota; 4025 Jersey Avenue North, Crystal, Minnesota; 3535 June Avenue North, Crystal, Minnesota;
5720 43rd Avenue North, Crystal, Minnesota; 3529 Lee Avenue North, Crystal, Minnesota; 6809 36th
Avenue North, Crystal, Minnesota; 4155 Webster Avenue South, St. Louis Park, Minnesota; 6452
Bluebird Circle, Maple Grove, Minnesota; 6769 East Fish Lake Road, Maple Grove, Minnesota; 7324
Noble Court, Brooklyn Park, Minnesota; 7839 Brooklyn Boulevard, Brooklyn Park, Minnesota; 1629
Independence Avenue North, Golden Valley, Minnesota (the "Existing Facilities"). The Borrower has
determined to (i) refinance one or more loans made to finance the Borrower's Existing Facilities; and
(ii) finance the acquisition, construction, and equipping of a new housing and care facility to be located at
6615 Medicine Lake Road in Golden Valley, Minnesota (the "New Facility," and collectively with the
Existing Facilities, the "Project").
1.03. The Note. The Borrower has requested that the City of New Hope, Minnesota (the "City
of New Hope") issue its Revenue Note (Homeward Bound Project), Series 2014 (the "Note"), in one or
more series, in the aggregate principal amount not to exceed $3,400,000, and loan the proceeds derived
from the sale of the Note to the Borrower (i) to finance the Project; and (ii) to pay the costs of issuance of
the Note. The Note is proposed to be purchased by Bremer Bank, National Association, a national
banking association (the "Lender").
1.04. Joint Powers Authority.
(a) Pursuant to Minnesota Statutes, Section 471.656, as amended, a city may issue
obligations to finance the acquisition or improvement of property located outside of the corporate
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boundaries of such city if the obligations are issued under a joint powers agreement in which one or more
of the parties to the joint powers agreement issue such obligations and the property is located entirely
within the boundaries of one or more of the parties to the joint powers agreement.
(b) Pursuant to Minnesota Statutes, Section 471.59, as amended, by the terms of a joint
powers agreement entered into through action of their governing bodies, two or more cities may jointly or
cooperatively exercise any power common to the contracting parties or any similar powers, including
those which are the same except for the territorial limits within which they may be exercised and the joint
powers agreement may provide for the exercise of such powers by one or more of the participating
governmental units on behalf of the other participating units.
(c) The Cities of Golden Valley, Crystal, Robbinsdale, Plymouth, Hopkins, Minnetonka, St.
Louis Park, Maple Grove, and Brooklyn Park, Minnesota (the "Participant Cities") and the City of New
Hope are all authorized by the Act to issue revenue obligations to finance the Project. The City of New
Hope and the Participant Cities are proposing to enter into a Cooperative Agreement, to be dated on or
after April 1, 2014 (the "Cooperative Agreement"), pursuant to which the Participant Cities, as host cities,
will consent to the issuance of revenue obligations and the financing of the Project by the City of New
Hope, and the City of New Hope will agree to issue such revenue obligations to finance the Project
located in the Participant Cities.
1.05. Public Hearing. The City appointed Hennepin County, Minnesota (the "County") as the
agent responsible for conducting a public hearing, in accordance with Section 5£103-2(d) of the Internal
Revenue Code of 1986, as amended (the "Code").
Section 2. Approval of the Issuance of the Note by the City of New Hope. The City hereby
approves and authorizes the issuance by the City of New Hope of its Note to finance the Project. The
Note will be issued under the terms of a resolution adopted by the City Council of City of New Hope on
March 10, 2014. The aggregate principal amount of the Note is presently estimated not to exceed
$3,400,000. Proceeds of the Note will be used to finance the Project and pay the costs of issuance of the
Note.
Section 3. Cooperative Agreement. The Mayor and the City [Manager/Administrator], or
their designees (together, the "City Officials"), are hereby authorized and directed to execute the
Cooperative Agreement, and when executed and delivered as authorized herein, the Cooperative
Agreement shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated
verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The
Cooperative Agreement shall be substantially in the form on file with the City on the date hereof, which is
hereby approved, with such necessary variations, omissions, and insertions as are not materially
inconsistent with such forms and as the City Officials, in their discretion, shall determine; provided that
the execution thereof by the City Officials shall be conclusive evidence of such determination.
Section 4. Documents Furnished to Bond Counsel. The City Officials and other officers,
employees, and agents of the City are hereby authorized and directed to prepare and furnish to bond
counsel and the Lender certified copies of all proceedings and records of the City relating to the approval
of the issuance of the Note, including a certification of this resolution. Such officers, employees, and
agents are hereby authorized to execute and deliver, on behalf of the City, all other certificates,
instruments, and other written documents that may be requested by bond counsel, the Lender, or other
persons or entities in conjunction with the issuance of the Note. Without imposing any limitation on the
scope of the preceding sentence, such officers, employees, and agents are specifically authorized to
execute and deliver a general certificate of the City.
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Section 5. Costs. The Borrower will, upon demand, reimburse the City for costs paid or
incurred by the City in connection with this resolution and the Cooperative Agreement.
Section 6. Effective Date. This resolution shall be in full force and effect from and after its
approval.
Approved by the City Council of the City of Plymouth, Minnesota this 25th day of March, 2014.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth,
Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth
City Council on March 25, 2014, with the original thereof on file in my office, and the same is a
correct transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this day of
City Clerk