V.1. Public Hearing to Identify a Qualified User of the Hopkins Pavilion in the City of Hopkins
City of Hopkins
FINANCE DEPARTMENT
MEMORANDUM
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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
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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.
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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
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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
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2018B bonds on May 1.