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V.1. Public Hearing to Identify a Qualified User of the Hopkins Pavilion in the City of Hopkins City of Hopkins FINANCE DEPARTMENT MEMORANDUM th Date: April 17, 2018 To: Mayor & City Council From: Nick Bishop, Finance Director Subject: Public Hearing to Identify a Qualified User of the Hopkins Pavilion in the City of Hopkins th At the March 20, 2018 City Council meeting, the Hopkins City Council authorized the sale of $3,355,000 General Obligation Tax Abatement Bonds, 2018B. The issuance of the 2018B Bonds requires two separate public hearings. The first is a public hearing to identify a qualified user of the Hopkins Pavilion to maintain tax exempt status of the bonds under IRS code. The Hopkins Youth Hockey Association (HYHA), a 501(c)(3) organization, has signed a lease with the City and will be a long term user of the Hopkins Pavilion. The City can enter a lease with HYHA and other qualified 501(c)(3) organization and maintain the tax exempt status of the bonds. st A second hearing will also be held at the May 1 City Council Meeting. In order to grant tax abatement for a public improvement, the City is required to hold a public hearing on the amount of the abatement to be granted, identify the properties from which they will abate the City’s portion of the taxes and describe the public purpose for granting the abatement. The abatement st hearing was rescheduled for May 1, in order to incorporate a $550,000 loan guaranty from the City for HYHA’s contribution of $1,000,000 to the Hopkins Pavilion project. No action is required at this meeting. Staff will request a resolution awarding the sale of the st 2018B bonds on May 1.