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City Council Resolution 2014-69follows: CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2014-069 CALLING A PUBLIC HEARING REGARDING THE ISSUANCE OF A REVENUE OBLIGATION FOR THE BENEFIT OF THE MONTICELLO YOUTH HOCKEY PROGRAM, INC. AND PROVIDING PRELIMINARY APPROVAL TO THE ISSUANCE THEREOF BE IT RESOLVED by the City Council of the City of Monticello, Minnesota (the "City "), as Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the "Act "), the City is authorized to issue revenue obligations to finance or refinance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of a "project," defined in the Act, in part, as any properties, real or personal, used or useful in connection with a revenue producing enterprise, or any combination of two or more such enterprises engaged in any business. 1.02. The Monticello Youth Hockey Program, Inc., a Minnesota nonprofit corporation (the "Borrower "), has acquired, constructed, and equipped a 425 -seat ice arena open to the public (the "Project ") and located at 302 Washington Street in the City on land leased from Independent School District No. 882 (Monticello Public Schools) (the "School District ") pursuant to a Ground Lease, dated January 20, 2004, as amended on September 8, 2004, and June 7, 2005, from the School District to the Borrower. The construction and equipping of the Project was financed through short-term construction financing. On February 17, 2006, the City issued its Revenue Note (Ice Arena Project), Series 2006A (the "Prior Note "), in the original aggregate principal amount of $1,380,000. Proceeds of the Prior Note, along with the proceeds of the Revenue Note (Ice Arena Project), Series 2006B, issued by the City in the original aggregate principal amount of $490,000 and no longer outstanding, were loaned to the Borrower for the purposes of providing permanent financing for the Project. 1.03. The Borrower has requested that the City issue its revenue obligation, in one or more series (the "Note "), in an aggregate principal amount not to exceed $1,111,000. The proceeds of the Note will be applied to refinance the Project through the redemption and prepayment of the outstanding Prior Note. 1.04. The Borrower has requested that the City Council conduct a public hearing on Monday, August 11, 2014, to provide approval of the issuance of the Note pursuant to the requirements of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code "), and the regulations promulgated thereunder. Section 2. Preliminary Findings. Based on representations made by the Borrower to the City to date, the City Council of the City hereby makes the following preliminary findings, determinations, and declarations: (a) The proceeds of the Note will be loaned to the Borrower and will be applied to refinance the Project. The City will enter into a loan agreement (or other revenue agreement) with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay the loan of the proceeds of the Note when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. 446228v2 JAE NIN190 -144 (b) The Note will be a limited obligation of the City payable solely from the revenues pledged to the payment thereof, and will not be a general or moral obligation of the City and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. Section 3. Public Hearin. 3.01. The City Council shall meet at 7:00 p.m. on Monday, August 11, 2014, to conduct a public hearing as requested by the Borrower, notice of which hearing (the "Public Notice ") will be published as required by the Act and Section 147(f) of the Code. 3.02. The City Clerk is hereby authorized and directed to publish the Public Notice, in substantially the form attached hereto as EXHIBIT A, in the Monticello Times, the official newspaper of the City and a newspaper of general circulation in the City. The Public Notice shall be published at least once, at least fifteen (14) days prior to the date of the public hearing. At the public hearing, reasonable opportunity will be provided for interested individuals to express their views, both orally and in writing, on the proposed issuance of the Note. Section 4. Preliminary Approval. The City Council hereby states its preliminary intention to issue the Note in the maximum aggregate principal amount of $1,111,000 to refinance the Project. Section 5. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with financing the Project and issuing the Note, whether or not the Note is issued. Section 6. Commitment Conditional. The adoption of this resolution does not constitute a guaranty or firm commitment that the City will issue the Note as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Note, or issue the Note in an amount less than the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Note, or to issue the Note in an amount less than the amount referred to in Section 1.03 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Section7. 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 Monticello, Minnesota, this 14t'1 day of July, 2014. CITE' OF MONTICELLO Clint Herbst, Mayor ATTEST: ,.c i �&', _ f4i c� «'� ro, 446228v2 JAE MN 190 -144 EXHIBIT "A" CITY OF MONTICELLO, MINNESOTA NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF A REVENUE OBLIGATION BY THE CITY OF MONTICELLO FOR THE BENEFIT OF THE MONTICELLO YOUTH HOCKEY PROGRAM, INC. NOTICE IS HEREBY GIVEN that the City Council (the "Council ") of the City of Monticello, Minnesota (the "City ") will meet in the Mississippi Room at the Community Center, 505 Walnut Avenue in the City, at or after 7:00 p.m. on Monday, August 11, 2014, to consider the issuance by the City of its revenue obligation, in one or more series (the "Note "), under Minnesota Statutes, Sections 469.152 through 469.165 5, as amended (the "Act "), in an aggregate principal amount not to exceed $1,111,000. The proceeds of the Note are to be applied to the redemption and prepayment of the outstanding Revenue Note (Ice Arena Project), Series 2006A (the "Prior Note "), issued by the City on February 17, 2006, in the original aggregate principal amount of $1,380,000, for the benefit of the Monticello Youth Hockey Program, Inc., a Minnesota nonprofit corporation (the "Borrower "). The Borrower used the proceeds of the Prior Note to provide permanent financing for the acquisition, construction, and equipping of a 425 -seat ice arena with locker room facilities which is open to the public (the "Project ") and located at 302 Washington Street in the City on land leased from Independent School District No. 882 (the "School District "). The Project is owned by the Borrower and is managed by the School District. Following the public hearing, the Council will consider adoption of a resolution granting approval to the issuance, sale, and delivery of the Note by the City for the purposes set forth above. The Note will be issued by the City and will be a limited obligation of the City payable solely from the revenues pledged to the payment thereof. The Note will not be a general or moral obligation of the City and will not be secured by or payable from any assets, revenues, or other property of the City (except the interests of the City in the revenues derived from the loan agreement between the City and the Borrower) and will not be secured by or payable from any revenues derived from any application of the taxing powers of the City. Anyone desiring to be heard during this public hearing will be afforded an opportunity to do so. BY ORDER OF THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA /s/ Jeff O'Neill City Administrator City of Monticello, Minnesota PUBLISH: Monticello Times on Thursday, July 24, 2014 POST: Thursday, July 24, 2014 446228v2 JAE NlN190 -144 CERTIFICATION STATE OF MINNESOTA COUNTY OF WRIGHT I hereby certify that the foregoing is a true and correct copy of Resolution #2014 -069 duly passed, adopted and approved by the Monticello City Council at their scheduled meeting on July 14th, 2014, and recorded in minutes of said meeting. Catherine M. Shuman, Deputy Clerk Notary Public: e' Vic. Date. VICKI JAN LEERHOFF ` Notary Public- Minnesota �`� MY Commission Expires Jan 31, 2016 . m.^dqAF4J4^P1,o1. 4ea:A4R 446228v2 JAE MN190 -144