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Approving the issuance by the City of Mounds View of its Educational Facilities Revenue Note, Series 2023, under Minnesota Statutes, Sections 469.152 through 469.1655, for the High School for the Recording Arts Project at 1166 University Avenue West (District 13, Ward 1).
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RECITALS
(a) 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.
(b) Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the governing body of the city in which the property is located consents by resolution to the issuance of such obligations.
(c) HSRA Building Company (the “Borrower”), a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), has proposed that the City of Mounds View, Minnesota (the “Issuer”) issue its Educational Facilities Revenue Note (High School for Recording Arts Project), Series 2023 (the “Note”), under the Act, in a principal amount not to exceed $6,200,000, and loan the proceeds thereof to the Borrower to (i) refund the Charter School Lease Revenue Bonds (High School for Recording Arts Project), Series 2015A issued by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) in the original principal amount of $7,550,000 (the “Series 2015A Bonds”), which financed the acquisition, construction, renovation and equipping of the building and related facilities located at 1166 University Avenue in the City of Saint Paul, Minnesota (the “School Facility”) for use as a public charter school for grade nine through grade twelve; (ii) fund a debt service reserve fund, if necessary; (iii) pay a portion of the interest on the Note, if necessary; and (iv) pay the costs of issuing the Note, if necessary (the “Project”). The School Facility is currently and will continue to be owned by the Borrower and leased to and operated as a charter school facility by High School for Recording Arts, a Minnesota nonprofit corporation (the “School”).
(d) The City of Saint Paul (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 upon the Project and the revenues to be derived from the Project. The Note or other obligations are special, limited obligations of the Issuer. The 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.
(e) 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 out to completion.
(f) 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 nor will any public official either directly or indirectly benefit financially from the Project.
(g) 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 a newspaper of general circulation for a public hearing on the proposed issuance of the Note and the proposal to undertake and finance the Project.
(h) 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 Project, which is located within the jurisdictional limits of the City, at which time all those appearing who desired to speak were heard and written comments were accepted.
(i) The HRA’s Resolution: RES 15-1521, which authorized the issuance of the Series 2015A Bonds, delegated to the Executive Director of the HRA the authority to provide necessary consents on behalf of the HRA and such consent to the refunding of the HRA’s Series 2015A Bonds has been provided in accordance with Section 469.155, Subd. 12 of the Act.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the “Council”), as follows:
1. 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 Note by the Issuer and to the refunding of the HRA’s Series 2015A Bonds.
2. City staff is hereby authorized and directed to prepare and furnish to bond counsel and the original purchaser of the Note 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.