2005-009
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2005-009
RESOLUTION GIVING HOST APPROVAL
TO THE ISSUANCE OF REVENUE BONDS AND AUTHORIZING
EXECUTION OF A JOINT POWERS AGREEMENT
(AUGUSTANA CHAPEL VIEW HOMES, INC. PROJECT)
WHEREAS, Augustana Chapel View Homes, Inc., a Minnesota nonprofit corporation
(the "Borrower"), has proposed that it obtain financing for a project (as described further below,
the "Project"), in the City of Hopkins (the "Host City") and also to cause certain outstanding
bonds to be refunded (as described further below, the "Refunding"), all pursuant to Minnesota
Statutes, Sections 469.152 to 469.1651, as amended, Minnesota Statutes, Chapter 462C, as
amended, and Minnesota Statutes, Section 471.59, as amended (all collectively referred to as the
"Act"); and
WHEREAS, the Project consists of the acquisition and construction of improvements to
the existing skilled nursing facility of the Borrower located at 615 Minnetonka Mills Road in the
City of Hopkins, including the construction of an approximately 22,000 square foot building
addition thereto to house approximately 28 new resident rooms (the "Project"); and
WHEREAS, the Borrower has proposed that the City of Minneapolis, Minnesota (the
"Issuer"), pursuant to a Joint Powers Agreement to be entered into between the Host City and the
Issuer (the "Joint Powers Agreement"), issue its revenue bonds, in one or more series, in an
original aggregate principal amount not to exceed $26,000,000 (the "Bonds"), to provide
financing for the Project and also to provide financing for improvements to the Borrower's
existing skilled nursing facility in the City of Minneapolis, and to provide for the refunding,
either in whole or in part, of certain outstanding revenue bonds or notes (all collectively referred
to as the "Refunded Bonds"), previously issued by the City of Hopkins and the City of
Minneapolis; and
WHEREAS, the Refunded Bonds consist, in part, of the outstanding Housing Facilities
Refunding Revenue Bonds (Augustana Chapel View Homes, Inc. Chapel View Project), Series
1995, issued by the City of Hopkins in the original principal amount of$3,550,000, and the
outstanding Health Care Facility Revenue Bonds (Augustana Chapel View Homes, Inc. Chapel
View Project), Series 1999, issued by the City of Hopkins in the original principal amount of
$665,000; and
WHEREAS, a copy of the proposed form of the Joint Powers Agreement has been
placed on file with the City in the offices of the City Clerk and has been presented to the
governing body of the City in connection with this Resolution; and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the
"Code"), requires that each governmental unit in which facilities to be financed or refinanced by
the Bonds are located must approve the issuance of the Bonds following a public hearing; and
WHEREAS, a public hearing on this matter was held by the governing body of the City
on the date hereof; and
WHEREAS, the Bonds are payable solely from revenues pledged thereto, and will not
be a general or moral obligation of the Issuer or the Host City or of any other political
subdivision of the State of Minnesota, but will be payable solely from payments required to be
made by the Borrower; and
WHEREAS, the Borrower will be responsible for the payment of all fees and expenses
which may be incurred by the City in connection with the approval of the issuance of the Bonds
and the execution of the Joint Powers Agreement;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, as follows:
1. For purposes of Section 147(f) of the Code, the Host City hereby approves the
issuance of the Bonds by the Issuer.
2. In no event shall the Bonds ever be payable from or charged upon any funds of
the Host City; the Host City is not subject to any liability thereon; no owners of the Bonds shall
ever have the right to compel the exercise of the taxing power of the Host City to pay any of the
Bonds or the interest thereon, nor to enforce payment thereof against any property of the Host
City; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any
property of the Host City; and the Bonds do not constitute an indebtedness of the Host City
within the meaning of any constitutional, statutory, or charter limitation.
3. The Joint Powers Agreement is hereby approved in substantially the form now on
file in the offices of the Host City, together with such modifications thereto as may be approved
by the officers executing the Joint Powers Agreement, which approval shall be conclusively
evidenced by the execution thereof; and the Mayor, the City Manager and the City Clerk, or
other officers of the City, are authorized to execute the same in the name of and on behalf of the
City. In the event of the disability or the resignation or other absence of the Mayor, the City
Manager or the City Clerk of the City, such other officers of the City who may act in their behalf
shall without further act or authorization of the City do all things and execute all instruments and
documents required to be done or to be executed by such absent or disabled officials. The
approval hereby given to the Joint Powers Agreement includes approval of such additional
details therein as may be necessary and appropriate and such modifications thereof, deletions
therefrom and additions thereto as may be necessary and appropriate and approved by the
officers of the City authorized herein to execute the Joint Powers Agreement, such approval to be
conclusively evidenced by the execution thereof.
~ Adopted by the City Council of the City of Hopkins, Minnesota this J g ~ay of
,ktW:'(BAV,200S. ~_
/~~~
Mayor