CR2014-015 Approve Resolution Appointing Hennepin County, Minnesota as Agent with Respect to a Public Hearing Regarding Housing Developments and the Issuance of Revenue Obligations for the Benefit of Homward Bound, Inc.February 3, 2014 Council Report 2014-015
City of Hopkins
APPROVE RESOLUTION APPOINTING HENNEPIN COUNTY, MINNESOTA AS AGENT
WITH RESPECT TO A PUBLIC HEARING REGARDING HOUSING DEVELOPMENTS
AND THE ISSUANCE OF REVENUE OBLIGATIONS FOR THE BENEFIT OF
HOMEWARD BOUND, INC.
Proposed Action
Staff recommends approval of the following motion: Approve resolution No. 2014-007 appointing Hennepin
County, Minnesota as agent with respect to a public hearing __ regarding housingdevelopments and the issuance
of revenue obligations for the benefit of homeward bound. Inc.
With this motion Hennepin County will act as agent for Hopkins with regards to the required public hearing on this
private activity bond issue.
Overview
Homeward Bound, Inc. with locations in 10 cities is working with the City of New Hope to sell private activity bonds.
As part of the proceedings to sell the bonds a public hearing must be held in each city where they have locations.
Holding 10 public hearings is burdensome and state statues allow public hearings by multiple governments to be
combined into one. Hennepin County has agreed to be the agent for all governments with regards to the public
hearing.
See attached memo from Julie Eddington of Kennedy & Graven for complete details.
Primary Issues to Consider
There are no issues regarding this action.
Supporting Information
• Resolution No. 2014-007
• Memo from Julie Eddington, Kennedy & Graven
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: S none Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.): Notes:
Kennedy
Graven
CHARTERED
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kermedy-graven.coin
MEMORANDUM
TO: Christine Harkess, Finance Director, City of Hopkins (the "City")
FROM: Julie Eddington
DATE: January 28, 2014
RE: Resolution designating Hennepin County as the agent responsible for holding a public
hearing regarding multifamily housing developments and the issuance of revenue notes
by the City of New Hope for the benefit of Homeward Bound, Inc.
Background
Homeward Bound, Inc., a Minnesota nonprofit corporation (the `Borrower"), has requested that the City of
New Hope (the "City of New Hope') issue revenue obligations (the "Notes') in a principal amount not to
exceed $3,400,000. The Borrower proposes to use the proceeds of the Notes to be used to (i) refinance one
or more 30 -year HUD loans for the Borrower's existing housing facilities for the disabled located in the
Cities of Golden Valley, Crystal, Robbinsdale, Plymouth, Hopkins, Minnetonka, St. Louis Park, Maple
Grove, Brooklyn Park, and New Hope (the "Existing Facilities"); (ii) finance the acquisition of land and.
the acquisition, construction, and equipping of a new facility proposed to be located in the City of Golden
Valley (the "New Facility," and collectively with the Existing Facilities, the "Project"); (iii) fund any
required reserves; and (iv) pay the costs of issuance of the Notes.
The Notes are proposed to be issued pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"),
and Minnesota Statutes, Sections 471.59 and 471.656, as amended. Pursuant to the public notice
requirements of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"),
because a portion of the Project is located in the City, the City Council of the City is required to hold a public
hearing on the approval of the issuance of the Notes, a cooperative agreement to be entered into with the
other cities in which portions of the Project are located (the "Cooperative Agreement'), and a housing
program prepared by the City of New Hope in accordance with the Act (the "Housing Program'). However,
Section 5f.103 -2(d) of the Code provides that public hearings by multiple governmental units may be
combined into one public hearing as long as the combined hearing is a joint undertaking providing all of the
residents of the participating governmental units a reasonable opportunity to be heard.
The attached resolution designates Hennepin County, Minnesota ("Hennepin County") as the agent
responsible for conducting a combined public hearing (the "Public Hearing") on behalf of the Cities of
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Golden Valley, Crystal, Robbinsdale, Plymouth, Hopkins, Minnetonka, St. Louis Park, Maple Grove, and
Brooklyn Park. The Public Hearing is expected to take place on February 25, 2014 or March 11, 2014.
The City Council of the City of New Hope, as the issuer of the Notes, will conduct a separate public
hearing to satisfy the requirements of the Act and Section 147(f) of the Code.
Following the Public Hearing to be conducted by Hennepin County, each City Council will be asked to
adopt a resolution approving the issuance of the Notes by the City of New Hope, authorizing the
execution of the Cooperative Agreement, and approving the Housing Program. Our office will prepare a
resolution for the City Council to consider at a meeting in March 2014.
Please contact me at your convenience with any questions regarding the foregoing.
KENNEDY & GRAVEN, CHARTERED
Julie Eddington
438881v1 JAENE395-1
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2014-007
RESOLUTION APPOINTING HENNEPIN COUNTY, MINNESOTA AS AGENT
WITH RESPECT TO A PUBLIC HEARING REGARDING HOUSING
DEVELOPMENTS AND THE ISSUANCE OF REVENUE OBLIGATIONS FOR
THE BENEFIT OF HOMEWARD BOUND, INC.
WHEREAS, Homeward Bound, Inc., a Minnesota nonprofit corporation (the "Borrower"), owns
and operates the following housing facilities for the disabled located at 4300 Lake Drive, Robbinsdale,
Minnesota; 3300 Fountain Lane, Plymouth, Minnesota; 315 Saratoga Lane North, Plymouth, Minnesota;
13522 Sunset Trail, Plymouth, Minnesota; 305 Althea Lane, Hopkins, Minnesota; 4213 Zealand Avenue
North, New Hope, Minnesota; 3009 Atwood Avenue, Minnetonka, Minnesota; 4025 Jersey Avenue
North, Crystal, Minnesota; 3535 June Avenue North, Crystal, Minnesota; 5720 43`d Avenue North,
Crystal, Minnesota; 3529 Lee Avenue North, Crystal, Minnesota; 6809 36`h Avenue North, Crystal,
Minnesota; 4155 Webster Avenue South, St. Louis Park, Minnesota; 6452 Bluebird Circle, Maple Grove,
Minnesota; 6769 East Fish Lake Road, Maple Grove, Minnesota; 7324 Noble Court, Brooklyn Park,
Minnesota; 7839 Brooklyn Boulevard, Brooklyn Park, Minnesota; 1629 Independence Avenue North,
Golden Valley, Minnesota (the "Existing Facilities"); and
WHEREAS, the Borrower has proposed that the City of New Hope, Minnesota (the "City of New
Hope") issue revenue obligations (the "Notes") for the benefit of the Borrower in order to (i) refinance
one or more 30 -year HUD loans for the Borrower's Existing Facilities; and (ii) finance the acquisition of
land and the acquisition, construction, and equipping of a new facility proposed to be located in Golden
Valley, Minnesota (the "New Facility," and collectively with the Existing Facilities, the "Project"); and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the
"Code"), Minnesota Statutes, Chapter 462C, as amended (the "Act"), and Minnesota Statutes,
Sections 471.59 and 471.656, as amended, prior to the issuance of the Notes by the City of New Hope,
each city in which the Project is located is required to conduct a public hearing on the Project, a housing
program in accordance with the Act, and the issuance of the Notes; and
WHEREAS, pursuant to Section 5f.103 -2(d) of the Code, the public hearings may be combined
into one public hearing as long as the combined public hearing is a joint undertaking which would
provide all of the residents of each city a reasonable opportunity to be heard; and
WHEREAS, the Cities of Golden Valley, Crystal, Robbinsdale, Plymouth, Hopkins, Minnetonka,
St. Louis Park, Maple Grove, and Brooklyn Park, Minnesota (the "Participant Cities") desire to designate
Hennepin County, Minnesota ("Hennepin County") as the agent responsible for conducting the required
public hearing, in accordance with Section 5f.103 -2(d) of the Code;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, as follows:
1. Hennepin County is hereby designated as the agent for purposes of conducting a public
hearing with respect to the Project, the housing program, and the issuance of the Notes.
2. This resolution shall be in full force and effect from and after its passage.
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Adopted by the City Council of the City of Hopkins, Minnesota, this 3`d day of February, 2014.
Eugene J. Maxwell, Mayor
Attest:
Kristine A. Luedke, City Clerk
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