IV.8. Resolution Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City; Harkess (CR2016-020) 1
February 16, 2016 Council Report 2016-020
DECLARING THE OFFICIAL INTENT OF THE
CITY OF HOPKINS TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
Proposed Action
Staff recommends approval of the following motion: Move to approve Resolution 2016-016
declaring the official intent of the City of Hopkins to reimburse certain expenditures from the proceeds of
bonds to be issued by the City.
Overview
Part of the Doran Companies project on the Johnson property includes a parking ramp that will
be used by the apartment complex project and for parking as part of the SWLRT project. The
parking ramp has funding from several sources that need to have benchmarks met in order for
funding to be released. The developer’s bank is not willing to fund 100% of the public parking
ramp up front. A portion of the public parking ramp’s funding is coming from the SWLRT
project which is not at a point where it can release funds. Therefore, the City may have to front
some costs in the interim and this resolution allows the project to move forward and gives the
City the option to bond for the project should the need arise while keeping this project moving
forward.
Supporting Documents
Resolution 2016-016
______________________________________
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ none Budgeted: Y/N N X Source:
Related Documents (CIP, ERP, etc.): ___________ Notes: __________________
474549v1 JAE HP110-91
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2016-016
DECLARING THE OFFICIAL INTENT OF THE
CITY OF HOPKINS TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the “Reimbursement
Regulations”) providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be
deemed spent unless certain requirements are met; and
WHEREAS, the City of Hopkins, Minnesota (the “City”) expects to incur certain expenditures that
may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-
exempt bond;
WHEREAS, the City has determined to make this declaration of official intent (“Declaration”) to
reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HOPKINS AS FOLLOWS:
1. The City proposes to finance an approximately 189 stall public parking ramp located at the
intersection of Eight Avenue S and Frist Avenue S, (the “Project”).
2. The City reasonably expects to reimburse the expenditures made for certain costs of the
Project from the proceeds of bonds in an estimated maximum principal amount of $11,000,000. All
reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures
eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for
the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000
or 5 percent of the proceeds of an issue; or (c) “preliminary expenditures” up to an amount not in excess of 20
percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City
to finance the project for which the preliminary expenditures were incurred. The term “preliminary
expenditures” includes architectural, engineering, surveying, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the City based on the
facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for
the Project and the principal amount of the bonds described in paragraph 2 are consistent with the City’s
budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City
are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside
pursuant to the City’s budget or financial policies to pay such Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for purposes of
the Reimbursement Regulations.
474549v1 JAE HP110-91 2
Approved this 15rh day of February, 2016, by the City Council of the City of Hopkins, Minnesota.
CITY OF HOPKINS, MINNESOTA
Molly C. Cummings, Mayor
Attest:
Amy Domeier, City Clerk