HomeMy WebLinkAbout21-065 - ADMIN Resolution - City Council - 2021/06/21Resolution No. 21-065
Resolution giving consent to the issuance of educational facility revenue bonds
under Minnesota Statutes, sections 469.152 through 169.165
(Groves Academy project)
Be it resolved by the City Council (the “City Council”) of the City of St. Louis Park,
Hennepin County, Minnesota (the “City”) as follows:
Section 1. General Recitals. The purpose of Minnesota Statutes, Sections 469.152
through 469.165, 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) Groves Academy, a Minnesota nonprofit corporation and 501(c)(3) organization
(the “Borrower”), has proposed that the City of Mayer, Minnesota (the "Issuer"), issue revenue
obligations, in one or more series (the "Note"), under the Act, in order to finance the Project
(defined below), in the approximate aggregate principal amount not to exceed $6,800,000 .
(b) The Borrower proposes to use the proceeds of the Note to (i) finance the
renovation, improvement, and equipping of the Borrower’s independent co -educational day
school facilities (the “Academy”) located at 3200 Highway 100 South in the City (the
“Renovation Project”), (ii) refund the Issuer's outstanding Educational Facili ty Revenue Note
(Groves Academy Project), Series 2014A, and Educational Facility Revenue Note (Groves
Academy Project), Series 2014B, the proceeds of which were used to finance and refinance the
renovation, expansion, construction, improvement, and equippi ng of the Academy (the
“Original Project” and, together with the Renovation Project, the “Project”), and (iii) finance the
costs of issuing the Note. The Project is owned, operated, and managed by the Borrower.
(c) The City has been advised that the Note 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 Note or
obligations will not be a charge against the general credit or taxing powers of the City or the
Issuer, but are payable from sums to be paid by the Borrower pursuant to a revenue
agreement.
Section 3. Recital of Representations Made by the Borrower. The Borrower has
agreed to pay any and all costs incurred by the City in connection with the issuance of the Note,
whether or not such issuance is carried to completion.
Section 4. Public Hearing.
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Resolution No. 21-065 2
(a) As required by the Act and Section 147(f) of the Internal Revenue Code of 1986,
as amended (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 Note and the proposal to undertake and finance the Project.
(b) As required by the Act and Section 147(f) of the Code, the City Council has on
this same date held a public hearing on the issuance of the Note and the proposal to undertake
and finance the portion of the Project located within the jurisdictional limits 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, Section 471.656,
Subdivision 2(2), the City Council hereby consents to the issuance of the Note by the Issuer.
The motion for the adoption of the foregoing resolution was duly seconded by City Council
Member Rachel Harris, and, after full discussion thereof and upon a vote being taken thereon,
the following City Council Members voted in favor thereof: Jake Spano, Larry Kraft, Nadia
Mohamed, Margaret Rog, Lynette Dumalag, Rachel Harris, and Tim Brausen.
And the following City Council Members voted in opposition: None
Reviewed for Administration: Adopted by the City Council June 21, 2021
Thomas K. Harmening, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
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