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Res 2020-35 Totino-Grace Project RESOLUTION NO. 2020-35 RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ISSUANCE OF EDUCATIONAL FACILITIES REVENUE NOTES AND AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING (TOTINO-GRACE HIGH SCHOOL PROJECT) (a) WHEREAS, Minnesota Statutes, Sections 469.152 through 469.165, relating to municipal industrial development (the “Act”), gives municipalities the power to issue revenue obligations for the purpose of promoting the welfare of 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; and (b) WHEREAS, Fridley, Minnesota (the “City”) has received from Grace High School, a Minnesota nonprofit corporation and 501(c)(3) organization (d/b/a Totino-Grace High School) (the “Borrower”), a proposal that it undertake a program to finance the Project hereinafter described, through the issuance of revenue notes, in one or more series, or obligations (the “Notes”) pursuant to the Act; and (c) WHEREAS, before proceeding with consideration of the request of the Borrower it is necessary for the City to hold a public hearing on the proposal pursuant to Section 147(f) of the Internal Revenue Code and Section 469.154, Subdivision 4, of the Act. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as follows: 1. A public hearing on the proposal of the Borrower will be held at the time and place set forth in the form of Notice of Public Hearing attached hereto as Exhibit A. The general nature of the Project and an estimate of the aggregate principal amount of revenue notes or other obligations to be issued to finance the proposal are described in the Notice of Public Hearing. 2. The Manager is hereby authorized and directed to cause notice of the hearing to be given one publication in the official newspaper of the City and also in a newspaper of general circulation available in the City, not less than 14 days nor more than 30 days prior to the date fixed for the hearing, substantially in the form of the attached Notice of Public Hearing. Adopted by the City Council of Fridley, Minnesota, this 13th day of July, 2020. _______________________________________ SCOTT J. LUND - MAYOR ATTEST: _____________________________________ DANIEL TIENTER – CITY CLERK Extract of Minutes of a Meeting of the City Council of the City of Fridley, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Fridley, Minnesota, was duly called and held at City Hall in said City on Monday, the 13th day of July, 2020, at 7:00 o’clock P.M. The following members were present: Mayor Scott Lund, Councilmember-at-Large David Ostwald, Councilmember Tom Tillberry, Councilmember Stephen Eggert and Councilmember Ann Bolkcom. and the following were absent: 0 Councilmember Bolkcom introduced the following resolution and moved its adoption: RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ISSUANCE OF EDUCATIONAL FACILITIES REVENUE NOTES AND AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING (TOTINO-GRACE HIGH SCHOOL PROJECT) The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Tillberry, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Mayor Scott Lund, Councilmember David Ostwald, Councilmember Tom Tillberry, Councilmember Stephen Eggert, and Councilmember Bolkcom. and the following voted against the same: 0 whereupon said resolution was declared duly passed and adopted. 2 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF FRIDLEY I, the undersigned, being the duly qualified and acting City Manager of the City of Fridley, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of the City of Fridley, Minnesota, duly called and held on the date therein indicated, insofar as such minutes relate to a resolution calling a public hearing on the issuance of educational facilities revenue notes. th WITNESS my hand this 14 day of July, 2020. ______________________________________ Walter T. Wysopal – City Manager 3 EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSAL FOR THE ISSUANCE OF EDUCATIONAL FACILITIES REVENUE NOTES FOR THE TOTINO-GRACE HIGH SCHOOL PROJECT Notice is hereby given that the City Council of the City of Fridley, Minnesota (the “City”) will meet at the Council Chambers of the Fridley Civic Center, 7071 University Avenue NE in the City, at 7:00 p.m. on Monday, August 10, 2020, to consider the proposal of Grace High School, a Minnesota nonprofit corporation (d/b/a Totino-Grace High School) and having federal income tax-exempt 501(c)(3) status (the “Borrower”), that the City assist in financing and refinancing a project hereinafter described pursuant to Minnesota Statutes, Sections 469.152 to 469.165, by the issuance of revenue notes, in one or more series (the “Notes”). The “Project” consists of (i) the refinancing of Borrower’s existing taxable debt issued pursuant to a Promissory Note dated as of December 12, 2018 (the “Prior Note”), the proceeds of which financed the acquisition of the land on which the Borrower’s private high school facilities are located (the “School Facilities”); and (ii) financing certain capital improvements to the School Facilities, including, but not limited to, restroom renovations, HVAC improvements, office space renovation, athletic field improvements, and technology infrastructure improvements. The School Facilities are owned and operated by the Borrower and located on an approximately 40 acre campus located at 1350 Gardena Avenue NE in the City. The maximum estimated principal amount of the Notes to be issued to finance the Project is $4,200,000. The Notes, if and when issued, will not constitute a charge, lien, or encumbrance upon any property of the City, except the Project, and such obligations will not be a charge against the general credit or taxing powers of the City but will be payable from sums to be paid by the Borrower pursuant to a revenue agreement. A draft copy of the proposed application to the Minnesota Department of Employment and Economic Development for approval of the Project, together with all attachments and exhibits thereto, is available for public inspection, during normal business hours, Monday through Friday, in the office of the Manager, in the City Hall. At the time and place fixed for the Public Hearing, the City Council will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. Written comments will be considered if submitted at the above City office on or before the date of the hearing. A-1