2017-054 Aprpoving Execution of Hopkins Pavilion Contribution Agreement wiht the Hopkins Youth Hockey Association and Anchor Bank NACITY OF HOPKINS, MIlVNESOTA
RESOLUTION NO. 2017-054
RESOLUTION APPROVING EXECUTION OF HOPKINS
PAVILION CONTRIBUTION AGREEMENT WITH THE
HOPKINS YOUTH HOCKEY ASSOCIATION AND ANCHOR
BANK, N.A.
WIIEREAS, the City of Hopkins, Minnesota (the "City") owns an ice hockey and multipurpose
facility known as the Hopkins Pavilion, located at 1 1000 Excelsior Boulevard in the CiTy (the "Facility");
and
WHEREAS, the Hopkins Youth Hockey Association, a Minnesota nonprofit corporation (the
"Association"), currently uses the ice arena within the Facility (the "Ice Arena") and rents space in the Ice
Arena on an annua] basis for its youth hockey activities; and
WIIEREAS, the CiTy and the Association have determined to finance the construction of certain
improvements to the Facility (the "Improvements"); and
WHEREAS, the Association has agreed to contribute $1,000,000 to the Ciry for the costs of the
Improvements with $50,000 in cash and $950,000 through a bank loan; and
WIiEREAS, Anchor Bank, N.A., a national banking association (the `Bank"), has agreed to loan
$950,000 to the Association (the "Loan") for the Association's contribution to the Improvements; and
WHEREAS, as a condition of providing the Loan, the Bank requires the City to guaranty
$550,000 of the Loan, provided that the guaranty would be utilized only upon a default under the loan
documents by the Association, aud the City intends to provide such guaranty through a general obligation
abatement note; and
WHEREAS, tlie City and the Association wil] enter into a Hopkins Pavilion Use Agreement,
which will set forth the terms of the use of the Ice Arena by the Association for a term of ten (10) years;
and
WIIEREAS, there has been presented before this City Council a form of Hopkins Pavilion
Contribution Agreement (the "Contribution AgreemenY') proposed to be entered into between the CiTy,
the Association, and the Bank, pursuant to which the City will agree to guarantee the payment by the
Association of the Abatement Note in the event that the Association is unable to make payments under
the Abatement Note or in the event that a default has occurred and is continuing under the documents
executed between the Bank and the Association with respect to the Loan;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota
(the "City"), as follows:
1. The Contribution Agreement is hereby in all respects authorized, approved, and
confirmed, and the Mayor and the City Manager are hereby authorized and directed to execute and deliver
the Contribution Agreement for and on behalf of the City in substantially the form now on file with the
City Council but with such modifications as shall be deemed necessary, desirable or appropriate, the
504606v1 JAE HPllO-98
execution thereof to constitute conclusive evidence of their approval of any and all modifications therein.
Notwithstanding the foregoing, the execution and delivery of the Contribution Agreement is contingent
upon the City Council holding a public hearing and granting an abatement in the amount of $550,000 in
order to issue the general obligation abatement note required as a guaranTy by the Bank.
2. The Mayor, the City Manager, and other ofticials and staff of the City are authorized and
directed to execute any other documents and certificates deemed necessary to carry out the intentions of
this resolution or the Contribution Agreement.
Adopted by the City Council of the City of Hopkins, Minnesota this 3151 day of July, 2017.
/��-/Z� f �ti� �-v�u-� �
Mayo
ATTEST:
�,������'C��
City Clerk
504606v1 JAE HPllO-98