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1997-084 CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 97-84 RESOLUTION GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF REVENUE REFUNDING BONDS FOR THE BLAKE SCHOOL PROJECT WHEREAS, pursuant to the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152 to 469.165 (the "Act"), the City of Hopkins (the "City") is authorized to issue its revenue bonds, in anticipation of the collection of revenues of a project, to finance, in whole or in part, the cost of acquisition, construction, reconstruction, improvement, betterment, or extension of such project, and to refund its bonds previously issued for such purpose; and WHEREAS, the City has previously issued its $5,750,000 Revenue Bonds, Series 1994 (The Blake School Project) (the "Series 1994 Bonds") for the purpose of financing a project consisting of remodeling approximately 45,000 square feet of space and constructing approximately 35,000 square feet of additional space at the middle school facility located in the City and owned and operated by The Blake School, a Minnesota nonprofit corporation (the "Borrower"); and WHEREAS, the City has been requested by the Borrower to issue its revenue refunding bonds in order to reduce debt service costs of the Borrower through the refunding of the Series 1994 Bonds; and WHEREAS, Section 147(1) of the Internal Revenue Code of 1986, as amended, requires that a public hearing be held on the proposed bond issue after publication of notice in a newspaper of general circulation within the City at least fourteen (14) days in advance of the hearing as a condition to the tax exemption of interest on the bonds; and WHEREAS, the City on this date conducted a public hearing on the proposed issuance of bonds. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HOPKINS, MINNESOTA: 1. The City hereby ratifies the prior publication of the notice of public hearing. 2. The City Council hereby states the preliminary intention of the City to issue revenue refunding bonds in an amount presently estimated not to exceed $6,300,000 for the foregoing purposes, subject to compliance with the terms and conditions of the Act and final agreement between the City, the Borrower and the initial purchaser of the bonds as to the terms and conditions thereof. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City to issue or cause D:\HPK 1 OO\009\RESIPRELIM DOC 1 PRELIMINARY RESOLUTION ,"';;., the issuance of the bonds, and the City may, in its sole and absolute discretion, determine not to issue the bonds. The bonds, if issued, shall be special, limited obligations of the City payable solely from the loan repayments to be paid by the Borrower and such other security devices deemed advantageous. The bonds shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. 3. The Borrower shall pay, and has agreed to pay, directly or through the City any and all costs, expenses and fees incurred by the City in connection with the proposed project and the refunding, whether or not the bonds are issued or all operative documents are executed and delivered. Adopted by the City Council of the City of Hopkins this ~!l-ci day of September, 1997. B ATTEST: " " D \/-lPK 1 OO\009\RES\PRELIM DOC 2 PRELIMINARY RESOLUTION