CR 01-96 Declaration of Official Intent of the City of Hopkins to reimburse certain Expenditures
C\TY OF
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July 31, 2001
HOPKINS
Council Report 2001-96
Declaration of Official Intent of the City of Hopkins to Reimburse Certain
Expenditures from Bond Proceeds to be Issued by the City of Hopkins for the
Excelsior Blvd/Milwaukee St/Jackson Ave/St. Louis Street Intersection Project -
City Project 01-05
Proposed Action
Staff recommends adoption of the following motion: Move that Council adopt
Resolution 2001-48, Resolution statinq the City's intent to sell qeneral obliqation
improvement bonds to pay for the Excelsior Blvd/Milwaukee St/Jackson Ave/St.
Louis Street Intersection Proiect - City Proiect 01-05.
Overview
On June 5th the Hopkins City Council authorized the Mayor and City Manager to
enter into an agreement with Bolton and Menk, Inc. for. design services on the
Excelsior Blvd/Milwaukee St/Jackson Ave/St. Louis Street Intersection Project in
the amount of $244,410. Based on these design fees, it can be assumed that
the total estimated costs for this project including contingencies and engineering
will be approximately $4,200,000. Due to the laws and regulations related to
bonding and financing of a project, if a City wishes to issue bonds on a project, -
they must declare their intent to reimburse project expenditures through bonding
before the expenditures are incurred. At this time, staff is recommending
adoption of Resolution 2001-48, which will reserve the City's rights to bond for
the costs of the project.
Primary Issues to Consider
. Project Funding
As a part of the proposed Medica Development on the North Annex
redevelopment site, this project is proposed to ultimately be funded through
the $16,000,000 in tax increment financing (TIF District 2-11) identified for
this site in the City's 2002-2006 Capital Improvements Plan. Adoption of
resolution has no direct financial costs to the City as it merely reserves the
City's right to bond for this project.
Supportinq Information
. Resolution 2001-48
~ -Bar-
Steven G. Bot
Assistant City Engineer
Financial Impact: i.L Budgeted: Y/N::L Source: TIF District 2-11
Related Documents (CIP, ERP, etc.): CIP Notes:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2001-48
DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS
TO REIMBURSE CERTAIN EXPENDITURES FROM
GENERAL OBLIGATION IMPROVEMENT BOND PROCEEDS
TO BE ISSUED BY THE CITY OF HOPKINS
WHEREAS, the Internal Revenue Service has issued Treas. Reg. #1.150-2
providing that proceeds of tax-exempt bonds used to reimburse prior expenditures shall
not be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures, which may be
financed temporarily from, sources other than bonds, and reimbursed from the bond
proceeds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF THE
CITY OF HOPKINS, MINNESOTA (THE CITY) AS FOllOWS:
1. The City intends to incur expenditures for the project described in Council Report
2001-96, for City Project 01-05 (the "Project"), and intends to reimburse itself for
such expenditures from the bond proceeds to be issued by the City in the maximum
principal amount described in the "project".
2. The City Manager is authorized to designate additions to Project 01-05 in
circumstances where time is of the essence, and any such designation shall be
reported to the Council at the earliest practicable date and shall be filed with the
official books and records of the City.
3. This resolution is intended to constitute a declaration of official intent for the
purpose of Treas. Reg. #1.150-2 and any successor law, regulation, ruling or
amendment pertaining thereto.
Adopted by the City Council of the City of Hopkins, Minnesota this 8th day of August
2001.
By
Eugene J. Maxwell, Mayor
ATTEST:
. Terry Obermaier, City Clerk