Res 2002-71 RESOLUTION NO.71 -2002
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT PURSUANT TO
MINNESOTA STATUTES, SECTION 469.154,AND AUTHORIZING THE SUBMISSION OF
AN APPLICATION TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC
DEVELOPMENT AND THE PREPARATION OF NECESSARY DOCUMENTS
(TOTINO-GRACE HIGH SCHOOL PROJECT)
WHEREAS,The City Council of the City of Fridley(the "City")has received from Grace High
School(doing business as Totino-Grace High School), a nonprofit corporation(the "Borrower") a
proposal that the City undertake to finance a Project hereinafter described,through the issuance of
revenue bonds(hereinafter the "Bonds" or the "Revenue Bonds")pursuant to Minnesota Statutes,
Sections 469.152 to 469.165 (the "Act");
The Borrower has represented that the Project to be financed by the Bonds is (i) renovation, and
constructing additions to,the Totino-Grace High School located on the Borrower's approximately 40 acre
campus located at 1350 Gardena Avenue NE in the City and (ii) the acquisition and installation of
equipment therein (the "Project"). The Borrower has represented that the Project includes, without
limitation, the construction and equipping of a new electrical and heating plant, the construction of an
additional 60 space surface parking lot and the refinancing of prior debt which was used to finance a new
library, science lab, offices and stadium. The Borrower has represented that the land constituting
Borrower's campus is owned by the Archdiocese of St. Paul and Minneapolis, a Minnesota corporation,
and leased to the Borrower pursuant to a ground lease. The Borrower has represented that while the
Project will not add permanent new jobs, it is expected to create 30 new construction jobs in addition to
the existing 120 jobs at the Borrower;
The City has been advised by representatives of Borrower that conventional, commercial financing to pay
the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that
the economic feasibility of operating the Project would be significantly reduced. A public hearing on the
Project was held on December 9,2002.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Fridley,Minnesota, as
follows:
The Council hereby indicates its preliminary, non-binding intent to assist in the financing of the Project
pursuant to the Act by the issuance of special, limited revenue Bonds in the total principal amount of up
to approximately$4,000,000.
On the basis of representations made, and of information provided, to this Council by the Borrower
(which the Council has not independently investigated or verified), it appears, and the Council hereby
finds, that the Project constitutes properties, real and personal, used or useful in connection with one or
more revenue producing enterprises within the meaning of Subdivision 2(b) of Section 469.153 of the
Act; that the Project furthers the purposes stated in Section 469.152; that the availability of the financing
under the Act and willingness of the City to furnish such financing will be a substantial inducement to
Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage
the prevention of the emergence of blighted and marginal land,to help prevent chronic unemployment, to
help the surrounding area retain and improve the tax base and to provide the range of service and
employment opportunities required by the population, to help prevent the movement of talented and
educated persons out of the state and to areas within the State where their services may not be as
effectively used.
Resolution No. 71-2002 Page 2
The Project is hereby given preliminary, non-binding approval by the City subject to final
approval by this Council, Borrower, and the purchaser of the Bonds as to the ultimate details of
the financing of the Project.
The Mayor and staff of the City are hereby authorized to co-operate with the Borrower in the submission
of an application for approval of a bond project to the Minnesota Department of Trade and Economic
Development for the Project.
The Borrower has agreed and it is hereby determined that any and all costs incurred by the City in
connection with the financing of the Project, including legal fees, whether or not the Project is carried to
completion,will be paid by the Borrower.
Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of
any municipal funds on the Project other than the revenues derived from the Project or otherwise granted
to the City for this purpose. 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 or funds of the City except the revenue
and proceeds pledged to the payment thereof and provided by or on behalf of the Borrower,nor shall the
City be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any
exercise of the taxing power of the City to pay the outstanding principal on the Bonds or the interest
thereon, or to enforce payment thereof against any property of the City. The Bonds shall recite in
substance that the Bonds including interest thereon, are payable solely from the revenue and proceeds
pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of
any constitutional or statutory limitation. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 9TH DAY OF
DECEMBER, 2002.
Ye/. (��
SCOTT J. L)7b - •YO
ATTEST:
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D BRA A. SKOGE CITY CLERK