CR 2013-059 Public Hearing Regarding A Housing Development at Augustana Chapel View Homes, Inc.June 4, 2013
Proposed Action
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City of Kopking
Council Report 2013-059
PUBLIC HEARING REGARDING A HOUSING DEVELOPMENT
AND THE ISSUANCE OF A HOUSING FACILITIES REVENUE
REFUNDING BOND, SERIES 2013, FOR THE BENEFIT OF
AUGUSTANA CHAPEL VIEW HOMES, INC.
Approve Resolution 2013-031 authorizing the issuance sale and delivery of the Housing Facilities Revenue
Refunding,Bond (Augustana Chapel View Homes Inc. Project) Series 2013, in a principal amount not to exceed
$5,290,000, for the benefit of Augustana Chapel View Homes Inc., payable solely from revenues pledged
pursuant to a loan agreement; approving the housing program in connection thereto; approving the form of and
authorizing the execution and delivery of the bond loan agreement, cooperative agreement, and related
documents; and providing for the security, rights, and remedies with respect to the bond.
Overview
Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Housing Act"), a municipality is authorized to
carry out the public purposes described in the Housing Act by providing for the issuance of revenue bonds to
provide funds to finance or refinance multifamily housing developments located within the municipality.
In May 2006 the City of Minneapolis issued Housing Refunding Bonds for Augustana Chapel View Homes, Inc. in
the amount of $7,010,000 of which $5,735,000 remain outstanding. Due to lower interest rates Augustana Chapel
View Homes would like to refinance the bonds and is asking the City of Hopkins to issue $5,290,000 on their
behalf. As a condition to the issuance of revenue bonds under the Housing Act, the City must adopt a housing
program providing the information required by Section 462C.03, subdivision la, of the Housing Act. The public
hearing is to provide: (i) approval of the issuance of the Series 2013 Bond pursuant to the requirements of
Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code") and the regulations promulgated
thereunder; and (ii) approval of the Housing Program pursuant to the requirements of the Housing Act.
The Series 2013 Bond will be a limited obligation of the City payable solely from the revenues pledges to the
payment and will not be a general obligation of the City and will not be secured by or payable from revenue
derived from any exercise of the taxing authority powers of the City.
With this resolution the City Council approves the issuance of a Series 2013 Bond in the amount of $5,290,000 to
finance a portion of. (i) refunding the outstanding principal amount of the Series 2006A Bonds; and (ii) paying the
costs of issuing the Series 2013 Bond and other costs related to the issuance of the Series 2013 Bond and the
refunding of the Series 2006A Bonds.
Julie Eddington from Kennedy and Graves, the City's bond counsel and representatives from Augustana Chapel
View Homes, Inc. will be present.
Supportinn Information
• Letter from Kennedy & Graven
• Resolution No. 2013-031
,,��,�. Financial Impact: $ Budgeted: Y/N
Rti ` Source:
Related Documents (CIP, ERP, etc.):
Christine M. Harkess, CPA, CGFM
Finance Director Notes:
Offices in 470 U.S. Bank Plaza
* 200 South Sixth Street
Minneapolis Minneapolis, MN 55402
ti� !II Saint Paul (612) 337-9300 telephone
(612) 337-9310 fax
St. Cloud www.kennedy-graven.com
C H A R T E R E D Affirmative Action, Equal Opportunity Employer
t
JULIE A. EDDnvGTON
Antomey at Law
Direct Dial (612) 337-9213
Email: je&in&n@ka medy-gravcn.com
May 30, 2013
Christine Harkess
Finance Director, City of Hopkins
1010 First Street South
Hopkins, MN 55343-7558
Re: Housing Facilities Revenue Refunding Bond (Augustana Chapel View Homes, Inc. Project),
Series 2013, proposed to be issued by the City of Hopkins, Minnesota
Dear Christine,
Augustan Chapel View Homes, Inc., a Minnesota nonprofit corporation (the `Borrower"), has requested that
the City of Hopkins (the "City") issue its Housing Facilities Revenue Refunding Bond (Augustan Chapel
View Homes, Inc. Project), Series 2013 (the "Series 2013 Bond'J, in a principal amount not to exceed
$5,290,000. Proceeds of the Series 2013Bond are proposed to be used to (i) refinance certain of the
Borrower's existing senior housing facilities located at 1020 East 17'-' Street and 1509 10te Avenue South in
the City of Minneapolis (together, the "Project") through the redemption and prepayment of die Series 2006A
Bonds (as hereinafter defined); and (ii) pay the costs of issuance of the Series 2013 Bond and other expenses
related to the transaction.
The Project was originally financed and subsequently refinanced with the proceeds of various bonds issued
by the City of Minneapolis (the "City of Minneapolis"), most recently with the proceeds of the Housing
Facilities Refunding Revenue Bonds (Augustana Chapel View Homes, Inc. Project), Series 2006A (the
"Series 2006A Bonds'l, issued by the City of Minneapolis on May 19, 2006, in the original aggregate
principal amount of $5,735,000. Although the Project is located in the City of Minneapolis, the Borrower has
requested that the Series 2013 Bond be issued by the City. The Borrower is also the owner of Augustana
Chapel View and Chapel View Apartments, both of which are located in the City. Pursuant to Minnesota
Statutes, Section 471.656, the City may enter into a cooperative agreement with the City of Minneapolis to
issue the Series 2013 Bond to refinance the Project. The City Council of the City of Minneapolis met on
May 24, 2013, and approved the issuance of the Series 2013 Bond by the City and the execution of the
proposed cooperative agreement.
The Series 2013 Bond is proposed to be issued pursuant to Minnesota Statutes, Chapter 462C, as amended
(the "Housing Act"). In order to satisfy the public notice requirements of the Housing Act and Section 147(f)
of the Internal Revenue Code of 1986, as amended (the "Code"), the Borrower has requested that the City
Council of the City hold a public hearing on June 4, 2013. Following the public hearing, the City Council
will consider the enclosed resolution, which provides final approval to the issuanceofthe Series 2013 Bond,
the Housing Program, and the execution of loan documents and related documents, including but not limited
to the cooperative agreement with the City of Minneapolis.
424730v1 JAE 1HP11045
The Series 2013 Bond is proposed to be issued as a tax-exempt obligation, the interest on which is not
includable in gross income for federal income tax purposes. Northland Securities, Inc. will act as placement
agent for this financing, and Venture Bank (the "Lender") has agreed to purchase the Series 2013 Bond from
the City. If the Series 2013 Bond is authorized to be issued by the City Council, it will be issued as a conduit
revenue bond secured solely by the revenues derived from a loan agreement (the "Loan Agreement") to be
executed by the Borrower and from other security provided by the Borrower. The Series 2013 Bond will not
constitute a general or moral obligation of the City and will not be secured by or payable from any property
or assets of the City (other than the interests of the City in the Loan Agreement) and will not be secured by
any taxing power of the City. The Series 2013 Bond will not be subject to any debt limitation imposed on the
City, and the issuance of the Series 2013 Bond will not have any adverse impact on the credit rating of the
City, even in the event that the Borrower encounters financial difficulties with respect to the Project to be
refinanced with the proceeds of the Series 2013 Bond.
The Series 2013 Bond is proposed to be privately placed with the Lender. The Borrower has requested that
the City designate the Series 2013 Bond as a "qualified tax-exempt obligation for purposes of
Section 265(bx3) of the Code. Tax-exempt obligations are usually not eligible for purchase by banks and
other financial institutions, but Section 265(b)(3) of the Code permits each issuer of tax-exempt obligations to
designate up to $10,000,000 of tax -exempt -bonds as "qualified tax-exempt obligations" (sometimes referred
to as "bank -qualified bonds") that are eligible for purchase by banks and other financial institutions. In order
to issue bank -qualified bonds, the issuer must not expect to issue more than $10,000,000 of bonds (other than
private activity bonds that are not qualified 501(c)(3) bonds) in a calendar year.
Under the terms of the Loan Agreement, the Borrower will agree to pay the out-of-pocket expenses of the
City with respect to this transaction. The Borrower will also pay the City's annual bond administrative fee in
the amount of one-eighth of one percent (0.125%) of the principal amount of the Series 2013 Bond
outstanding, which will be divided into semiannual payments due on each June l and December 1.
I will be attending the City Council meeting on June 4, 2013, in case there are any questions related to the
enclosedresolution or the issuance of the Series 2013 Bond. Please contact me with any questions you may
have regarding the foregoing.
Sincerely,
ulie A. Eddington
424730vi ]AE HPI 14-85 2
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2013-31
RESOLUTION AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF
THE HOUSING FACILITIES REVENUE REFUNDING BOND (AUGUSTANA
CHAPEL VIEW HOMES, INC. PROJECT), SERIES 2013, IN A PRINCIPAL
AMOUNT NOT TO EXCEED $5,290,000, FOR THE BENEFIT OF AUGUSTANA
CHAPEL VIEW HOMES, INC., PAYABLE SOLELY FROM REVENUES
PLEDGED PURSUANT TO A LOAN AGREEMENT; APPROVING THE
HOUSING PROGRAM IN CONNECTION THERETO; APPROVING THE
FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE
BOND, LOAN AGREEMENT, COOPERATIVE AGREEMENT, AND RELATED
DOCUMENTS; AND PROVIDING FOR THE SECURITY, RIGHTS, AND
REMEDIES WITH RESPECT TO THE BOND
BE IT RESOLVED by the City Council of the. City of Hopkins, Minnesota (the "City"), as
follows:
Section 1. Findings.
1.01. Minnesota Statutes, Chapter 462C, as amended (the "Housing Act"), authorizes a
municipality to carry out the public purposes described in the Housing Act by providing for the issuance
of revenue bonds to provide funds to finance or refinance multifamily housing developments.
1.02. Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue
obligations to finance 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. Pursuant to Minnesota Statutes, Section 471.59, as amended, by the terms of a joint
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 are 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 units.
1.03. Augustana Chapel View Homes, Inc., a Minnesota nonprofit corporation (the
"Borrower"), has requested that the City issue a revenue obligation pursuant to the Housing Act to be
designated the Housing Facilities Revenue Refunding Bond (Augustana Chapel View Homes, Inc.
Project), Series 2013 (the "Bond"), in one or more series, and in the aggregate principal amount not to
exceed $5,290,000. The proceeds of the Bond will be applied to (i) the financing of certain of the
Borrower's existing senior housing facilities located at 1020 East 17'' Street and 1509 10t` Avenue South,
Minneapolis, Minnesota (together, the "Project") by refunding the Housing Facilities Refunding Revenue
Bonds (Augustana Chapel View Homes, Inc. Project), Series 2006A (the "Prior Bonds"), issued by the
City of Minneapolis (the "City of Minneapolis") in the original aggregate principal amount of $7,010,000,
which are currently outstanding in the aggregate principal amount of $5,470,000; and (ii) the payment of
costs of issuance of the Bond and other costs related to the refunding of the Prior Bonds.
423676v2 JAE HPI 10-85
1.04. The City and the City of Minneapolis are proposing to enter into a Cooperative
Agreement, dated on or after June 1, 2013 (the "Cooperative Agreement'), pursuant to which the City of
Minneapolis will consent to the issuance by the City of the Bond and the refinancing of the Project by the
City and the City will agree to issue the Bond to refinance the Project.
1.05. In accordance with the Housing Act, the City has prepared a Housing Program (the
"Housing Program"), which authorizes the issuance of the Bond by the City to refinance the Project and
was submitted to the Metropolitan Council for its review and comment. On May 24, 2013, the City
received correspondence from the Metropolitan Council acknowledging receipt of the Housing Program
and providing its comments with respect to the Housing Program and the refinancing of the Project.
1.06. The Borrower has represented to the City that it is exempt from federal income taxation
under Section 501(a) of the Internal Revenue Code of 1986, as amended (the "Code"), as a result of the
application of Section 501(c)(3) of the Code.
1.07. Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and
regulations promulgated thereunder, and Section 462C.04 of the Housing Act require that prior to the
issuance of the Bond, the City Council approve the issuance of the Bond 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
fifteen (15) days prior to the public hearing date.
1.08. On the date hereof, the City Council conducted a duly noticed public hearing at which a
reasonable opportunity was provided for interested individuals to express their views, both orally and in
writing, on the following issues: (i) approval of the issuance of the Bond pursuant to the requirements of
Section 147(f) of the Code and the regulations promulgated thereunder; and (ii) approval of the Housing
Program pursuant to the requirements of the Housing Act.
1.09. The Bond is to be issued under the terms of this resolution. It is proposed that the Bond
be sold to Venture Bank, a Minnesota banking corporation (the "Lender"). The proceeds derived from
the sale of the Bond are to be loaned by the City to the Borrower pursuant to the terms of a Loan
Agreement, dated on or after June 1, 2013 (the "Loan Agreement'), between the City and the Borrower.
Proceeds of the Bond will be applied by the Borrower, together with other funds of the Borrower and
funds transferred from a debt service reserve fund for the Prior Bonds, to refinance the Project.
1.10. The loan repayments required to be made by the Borrower under the terms of the Loan
Agreement and certain other rights will be assigned to the Lender under the terms of the Pledge
Agreement, dated on or after June 1, 2013 (the "Pledge Agreement'), between the City and the Lender.
1.11. In consideration of the loan by the City of the proceeds of the Bond to the Borrower and
to secure the payment of its obligations under the Loan Agreement and the principal of, premium, if any,
and interest on the Bond when due, the Borrower will execute and deliver an Amended and Restated
Combination Mortgage, Security Agreement and Fixture Financing Statement and Assignment of Leases.
and Rents, dated on or after June 1, 2013 (the "Mortgage"), between the Borrower and the Lender. In
addition, Augustana Care, a Minnesota nonprofit corporation and the sole member of the Borrower (the
"Guarantor"), will deliver a Guaranty Agreement, dated on or after June 1, 2013 (the "Guaranty
Agreement'), to the Lender to guarantee payment of the principal of and the interest on the Bond, until
the Guaranty Agreement is released pursuant to the terms thereof.
1.12. The principal of, premium, if any, and interest on the Bond (i) shall be payable solely
from the revenues pledged and otherwise available therefor; (ii) shall not constitute a debt of the City
423676v2 JAE HPI 10-85 2
within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a
pecuniary liability of the City or a charge against its general credit or taxing powers; and (iv) shall not
constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the
City's interest in the Loan Agreement.
Section 2. The Bond.
2.01. For the purposes set forth above, there is hereby authorized the issuance, sale and
delivery of the Bond in an aggregate principal amount not to exceed $5,290,000. The Bond shall bear
interest at rates designated by the terms of the Bond, and shall be designated, shall be numbered, shall be
dated, shall mature, shall be subject to redemption prior to maturity, shall be in such form, and shall have
such other terms, details, and provisions as are prescribed in the form of the Bond now on file with the
City, with the amendments referenced herein. The City hereby authorizes the Bond to be issued as a "tax-
exempt bond" the interest on which is not includable in gross income for federal and State of Minnesota
income tax purposes.
2.02. All of the provisions of the Bond, when executed 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 date of execution and delivery thereof. The Bond shall be substantially in
the form now on file with the City, which form is hereby approved, with such necessary and appropriate
variations, omissions, and insertions (including changes to the name of the Bond, the aggregate principal
amount of the Bond, the stated maturity of the Bond and the maturity date of the Bond, the interest rate on
the Bond, and the terms of optional and mandatory redemption of the Bond) as the Mayor and the City
Manager (the "Mayor" and the "City Manager," respectively), in their discretion, shall determine. The
Mayor and the City Manager are authorized and directed to prepare the Bond, and the Bond shall be
delivered to the Lender. The execution of the Bond with the manual or facsimile signatures of the Mayor
and the City Manager and the delivery of the Bond by the City shall be conclusive evidence of such
determination. The City Council of the City hereby authorizes and directs the Mayor and the City
Manager to execute and deliver the Bond.
2.03. The Bond shall be a special limited obligation of the City, and the principal, premium,
and interest on the Bond shall be payable solely from the proceeds of the Bond, the revenues derived from
the Borrower pursuant to the terms of the Loan Agreement and the security provided by the Borrower in
accordance with the terms of the Loan Agreement, the Mortgage, and any and all other security of any
kind or nature provided by the Borrower to the Lender.
2.04. As provided in the Loan Agreement, the Bond shall not be payable from nor charged
upon any funds other than the revenues pledged to its payment, nor shall the City be subject to any
liability thereon, except as otherwise provided in this paragraph. No holder of the Bond shall ever have
the right to compel any exercise by the City of its taxing powers to pay any of the Bond or the interest or
premium thereon, or to enforce payment thereof against any property of the City except the interests of
the City in the Loan Agreement and the revenues and assets thereunder, which will be assigned to the
Lender under the Pledge Agreement. The Bond shall not constitute a charge, lien, or encumbrance, legal
or equitable, upon any property of the City, except the interests of the City in the Loan Agreement, and
the revenues and assets thereunder, which will be assigned to the Lender under the Pledge Agreement.
The Bond shall recite that the Bond is issued pursuant to the Housing Act, and that the Bond, including
interest and premium, if any, thereon, is payable solely from the revenues and assets pledged to the
payment thereof, and the Bond shall not constitute a debt of the City within the meaning of any
constitutional or statutory limitations.
423676v2 JAE HP 110-85
Section 3. The Cooperative Agreement. The Cooperative Agreement is hereby approved.
The Mayor and the City Manager are hereby authorized and directed to execute and deliver the
Cooperative Agreement. 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 date of execution
and delivery thereof. The Cooperative Agreement shall be substantially in the form on file with the City,
with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and
City Manager, in their discretion, shall determine, and the execution of the Cooperative Agreement by the
Mayor and the City Manager shall be conclusive evidence of such determination.
Section 4. The Loan Agreement. The Mayor and the City Manager are hereby authorized
and directed to execute and deliver the Loan Agreement. All of the provisions of the Loan 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 date
of execution and delivery thereof. The Loan 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.
Section 5. Disbursements of Bond Proceeds. The proceeds of the Bond shall be disbursed
in accordance with the terms of the Loan Agreement.
Section 6. The Pledge Agreement. The Mayor and the City Manager are hereby authorized
and directed to execute and deliver the Pledge Agreement. All of the provisions of the Pledge
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 date of execution and delivery thereof. The Pledge 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.
Section 7. Other Documents. The Mayor, the City Manager, and the Finance Director of
the City are hereby authorized to execute and deliver, on behalf of the City, such other documents as are
necessary or appropriate in connection with the issuance, sale, and delivery of the Bond, including one or
more certificates of the City, an endorsement of the City to the tax certificate of the Borrower, an
Information Return for Tax -Exempt Private Activity Bond Issues, Form 8038, and all other documents
and certificates as shall be necessary and appropriate in connection with the issuance, sale, and delivery of
the Bond. The City hereby authorizes Kennedy & Graven, Chartered to prepare, execute, and deliver its
approving legal opinion with respect to the Bond.
Section 8. The City and Its Officers, Employees, and Agents.
8.01. Except as otherwise provided in this resolution, all rights, powers, and privileges
conferred and duties and liabilities imposed upon the City or the City Council by the provisions of this
resolution or of the aforementioned documents shall be exercised or performed by the City or by such
members of the City Council, or such officers, board, body, or agency thereof as may be required or
authorized by law to exercise such powers and to perform such duties.
8.02. No covenant, stipulation, obligation, or agreement herein contained or contained in the
aforementioned documents shall be deemed to be a covenant, stipulation, obligation, or agreement of any
423676v2 JAE HPI10-85
member of the City Council of the City, or any officer, agent, or employee of the City in that person's
individual capacity, and neither the City Council of the City nor any officer or employee executing the
Bond shall be liable personally on the Bond or be subject to any personal liability or accountability by
reason of the issuance thereof.
8.03. No provision, covenant, or agreement contained in the aforementioned documents, the
Bond, or in any other document relating to the Bond, and no obligation therein or herein imposed upon
the City or the breach thereof, shall constitute or give rise to any pecuniary liability of the City or any
charge upon its general credit or taxing powers. In making the agreements, provisions, covenants, and
representations set forth in such documents, the City has not obligated itself to pay or remit any funds or
revenues, other than funds and revenues derived from the Loan Agreement which are to be applied to the
payment of the Bond, as provided therein.
8.04. Except as herein otherwise expressly provided, nothing in this resolution or in the
aforementioned documents expressed or implied, is intended or shall be construed to confer upon any
person or firm or corporation, other than the City or any holder of the Bond, any right, remedy, or claim,
legal or equitable, under and by reason of this resolution or any provisions hereof, the aforementioned
documents and all of their provisions being intended to be and being for the sole and exclusive benefit of
the City and any holders from time to time of the Bond.
Section 9. Severability. In case any one or more of the provisions of this resolution, other
than the provisions contained in Section 2.03 hereof, or of the aforementioned documents, or of the Bond
issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not
affect any other provision of this resolution, or of the aforementioned documents, or of the Bond, but this
resolution, the aforementioned documents, and the Bond shall be construed and endorsed as if such illegal
or invalid provisions had not been contained therein.
Section 10. Validity of the Bond. The Bond, when executed and delivered, shall contain a
recital that it is issued pursuant to the Housing Act, and such recital shall be conclusive evidence of the
validity of the Bond and the regularity of the issuance thereof, and that all acts, conditions, and things
required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance
of the Bond, and to the execution of the aforementioned documents to happen, exist, and be performed
precedent to the execution of the aforementioned documents have happened, exist, and have been
performed as so required by law.
Section 11. Authorization for Other Acts. The officers of the City, bond counsel, other
attorneys, engineers, and other agents or employees of the City are hereby authorized to do all acts and
things required of them by or in connection with this resolution, the aforementioned documents, and the
Bond for the full, punctual, and complete performance of all the terns, covenants, and agreements
contained in the Bond, the aforementioned documents and this resolution. In the event that for any reason
the Mayor is unable to carry out the execution of any of the documents or other acts provided herein, any
persons delegated the duties of the Mayor shall be authorized to act in the capacity of the Mayor and
undertake such execution or acts on behalf of the City with full force and effect, which execution or acts
shall be valid and binding on the City. If for any reason the City Manager is unable to execute and deliver
the documents referred to in this resolution, such documents may be executed by any person delegated the
duties of the City Manager, with the same force and effect as if such documents were executed and
delivered by the City Manager.
Section 12. Designation of Bond as `Bank -Qualified." The City hereby designates the Bond
as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code.
423676v2 JAE HPI 10-85 S
Section 13. Payment of Costs. The Borrower has agreed to pay directly or through the City
any and all costs paid or incurred by the City in connection with the transactions authorized by this
resolution, whether or not the Bond is issued.
Section 14. Payment of City's Administrative Fee. The Loan Agreement will require the
Borrower to pay the City's annual bond administrative fee in the amount of one-eighth of one percent
(0.125%) of the outstanding principal amount of the Bond, as set forth in the Loan Agreement.
Section 15. Effective Date. This resolution shall be in full force and effect from and after its
passage.
Adopted by the City Council of the City of Hopkins, Minnesota, this 4`h day of June, 2013.
Eugene Maxwell, Mayor
Attest:
Kristine A. Luedke, City Clerk
423676v2 JAE HP 110-85