2017-075 Consenting to and Approving the Issuance by the City of Independence of its Revenue Obligations and Taking Other Actions with Respect TheretoCITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2017-075
RESOLUTION CONSENTING TO AND APPROVING THE
ISSUANCE BY THE CITY OF INDEPENDENCE OF ITS
REVENUE OBLIGATIONS AND TAKING OTHER ACTIONS
WITH RESPECT THERETO
WHEREAS, the City of Hopkins, Minnesota (the "City") is a home rule charter city and political
subdivision duly organized and existing under its Charter and the laws of the State of Minnesota; and
WHEREAS, pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended
(the "Industrial Development Act"), the City is authorized to carry out the public purposes described in
the Industrial Development Act by providing for the issuance of revenue bonds to provide funds to
finance or refinance revenue-producing enterprises located within the City, whether or not operated for
profit, engaged in providing health care services, including, without limitation, hospitals and related
medical facilities or to refund, in whole or in part, bonds previously issued under the authority of the
Industrial Development Act; and
WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Housing Act"), a
municipality is authorized to issue revenue bonds to finance or refinance developments consisting of
multifamily housing and new or existing health care facilities (including nursing and assisted living
facilities); and
WHEREAS, Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue
obligations to finance or refinance the acquisition or improvement of property located outside of the
corporate boundaries of such municipality if the obligations are issued under a joint powers agreement
between the municipality issuing the obligations and the municipality in which the property to be
acquired or improved is located; and
WHEREAS, pursuant to Minnesota Statutes, Section 471.59, as amended, by the terms of ajoint
powers agreement entered into through action of their governing bodies, two municipalities may jointly or
cooperatively exercise any power common to the contracting parties or any similar powers, including
those which we the same except for the territorial limits within which they may be exercised and the joint
powers agreement may provide for the exercise of such powers by one or more of the participating
governmental units on behalf of the other participating wits; and
WHEREAS, Augustan Chapel View Homes, Inc., a Minnesota nonprofit corporation (the
`Borrower"), has proposed that the City of Independence, Minnesota (the "City of Independence") issue
its revenue obligations (the "Bonds"), in one or more series, as taxable or taxcxempt obligations, in an
aggregate principal amount not to exceed $5,500,000, under the provisions of the Industrial Development
Act, the Housing Act, and Minnesota Statutes, Sections 471.59 and 471.656, as amended, and loan the
proceeds thereof to the Borrower to (i) refinance the Borrower's skilled nursing and senior housing
facilities (the "Facilities") located at 605 and 615 Minnetonka Mills Road in the City through the
redemption and prepayment of the Health Care Facilities Refunding Revenue Bonds (Augustan Chapel
View Homes, Inc. Project), Series 2005A, issued by the City of Minneapolis, Minnesota (the "City of
Minneapolis") on February 24, 2005, and the Health Care Facilities Revenue Bonds (Augustan Chapel
View Homes, Inc. Project), Series 2005C, issued by the City of Minneapolis on May 31, 2005;
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(ii) finance improvements to the Facilities (the "Improvements"); (iii) fund required reserves; and (iv) pay
costs of issuance of the Bonds; and
WHEREAS, Section 147(1) of the Internal Revenue Code of 1986, as amended (the "Code"), and
regulations promulgated thereunder require that prior to the issuance of the Bonds, the City Council of the
City (the "City Council') consent to the issuance of the Bonds by the City of Independence after
conducting a public hearing thereon preceded by publication of a notice of public hearing (in the form
required by Section 147(f) of the Code and applicable regulations) in a newspaper of general circulation
within the City at least fourteen (14) days prior to the public hearing date; and
WHEREAS, a notice of public hearing (the "Public Notice") was published at least fourteen (14)
days before the regularly scheduled meeting of the City Council on the date hereof in the Sun Sailor, the
official newspaper of and a newspaper of general circulation in the City, with respect to the required
public hearing under Section 147(f) of the Code; and
WHEREAS, on the date hereof, the City Council conducted a public hearing at which a
reasonable opportunity was provided for interested individuals to express their views, both orally and in
writing, on the following: (i) consent to the issuance of the Bonds by the City of Independence pursuant
to the requirements of Section 147(f) of the Code and the regulations promulgated thereunder; and
(ii) approval of the issuance of the Bonds by the City of Independence to refinance the Facilities and finance
the Improvements; and
WHEREAS, the City and the City of Independence are proposing to enter into a Cooperative
Agreement (the "Cooperative Agreement'), pursuant to which the City will consent to the issuance of the
Bonds by the City of Independence to refinance the Facilities and fmance the hnprovements, and the City
of Independence will agree to issue the Bonds for such purposes; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HOPKINS, MINNESOTA, AS FOLLOWS:
1. The City Council finds that it is in the best interest of the City to approve the issuance of
the Bonds by the City of Independence to refinance the Facilities and finance the Improvements and
hereby consents to the issuance of the Bonds by the City of Independence for the purposes set forth above
in an amount not to exceed $5,500,000.
2. The Mayor and the City Manager are hereby authorized and directed to execute and deliver
the Cooperative Agreement and any other documents deemed necessary to fulfill the intentions of this
resolution. All of the provisions of the Cooperative Agreement, when executed and delivered as authorized
herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated
verbatim herein and shall be in full force and effect from the dam of execution and delivery thereof. The
Cooperative Agreement shall be substantially in the form on file with the City which is hereby approved,
with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the
City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City
Manager shall be conclusive evidence of such determination.
3. The Mayor and City Manager and other officers, employees, and agents of the City are
hereby authorized and directed to prepare and furnish to bond counsel and the original purchaser of the
Bonds certified copies of all proceedings and records of the City relating to the approval of the issuance
of the Bonds, including a certification of this resolution.
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4. The Borrower will, upon demand, reimburse the City for costs paid or incurred by the
City in connection with this resolution.
5. This resolution shall be in full force and effect from and after its passage.
Approved by the City Council of the City of Hopkins, Minnesota this 61h day of November, 2017.
Molly C gs, Mayor
ATTEST:
�I tai i l /1 i Pit
Amy Domeier, City Clerk
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