Resolution 05-03 DRCC Bonding
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165 REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED, by the governing body (the Council) of the City of Mountain Iron, St. Louis County, Minnesota (the Issuer), as follows:
Section 1. General Recitals.
a. The purpose of Minnesota Statutes, Sections 469.152 through 469.165 as amended, relating to municipal industrial development (the Act), as found and determined by the legislature, is to promote the welfare of the State of Minnesota (the State) by the active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental action to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment.
b. Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land uses which will provide access to employment opportunities for such population.
Section 2. Description of the Project.
a. The Duluth Regional Care Center, Inc. (the Borrower) located at 728 Garfield Avenue in Duluth, Minnesota, a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the Code) has proposed issuance of revenue obligations, in one or more series, in an amount not to exceed $1,600,000 (the Notes), to undertake and finance the project described in Exhibit A attached hereto (the Project).
b. The Project will be owned and operated by the Borrower.
c. As more fully described in Exhibit A, portions of the Project are located in the jurisdiction of the Issuer, the City of Hermantown, Minnesota, and in the City of Duluth, Minnesota, within the jurisdiction of the Duluth Economic Development Authority (collectively, with the Issuer, the Host Municipalities).
Section 3. Recitals Relating to the Joint Exercise of Powers.
a. Under the Act, the Host Municipalities arc each authorized and empowered to issue revenue bonds or a revenue note to undertake and finance or refinance all or any part of the costs of a project consisting of the refinancing of debt incurred with respect to, or acquisition and betterment of health care facilities or revenue-producing facilities of organizations described in Section 501(c)(3) of the Code and to refund bonds previously issued under the Act.
b. The Borrower has requested that the Host Municipalities cooperate through a joint powers agreement (as required by Minnesota Statutes, Section 471.656) to finance the Project through the issuance of the Notes pursuant to the Act.
c. A draft copy of the Joint Powers Agreement among the Host Municipalities (the Joint Powers Agreement) has been submitted to the Council and is on file in the office of the Administrator.
Section 4. Recital of Representations Made by the Borrower.
a. The Issuer has been advised by representatives of the Borrower that: (i) conventional financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced; (ii) on the basis of information submitted to the Borrower and their discussions with representatives of area financial institutions and potential buyers of tax-exempt bonds, the Notes could be issued and sold upon favorable rates and terms to finance the Project; (iii) the Borrower will experience a significant debt service cost savings through the refinancing portion of the Project; and (iv) the Project would not be undertaken in its present form but for the availability of financing under the Act.
b. The Borrower has agreed to pay any and all costs incurred by the Issuer and the other Host Municipalities in connection with the issuance of the Notes, whether or not such issuance is carried to completion.
c. The Borrower has represented to the Issuer that no public official of the Issuer has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project.
Section 5. Public Hearing.
a. As required by the Act and Section 147(f) of the Code, an initial resolution was adopted by the Council on January 6, 2003, scheduling a public hearing on the issuance of the Notes and the proposal to undertake and finance the Project.
b. As required by the Act and Section 147(f) of the Code a Notice of Public Hearing was published in the Mesabi Daily News, the Issuer�s official newspaper, and a newspaper of general circulation, calling a public hearing on the proposed issuance of the Notes and the proposal to undertake and finance the Project.
c. As required by the Act and Section 147(f) Code, the Borrower has represented that the other Host Municipalities have each held public hearings and the Issuer has, on February 3, 2003, held a public hearing on the issuance of the Notes and the proposal to undertake and finance the Project, at which all those appearing who desired to speak were heard and written comments were accepted.
Section 6. Findings. It is hereby found, determined, and declared as follows:
a. The welfare of the State and the Issuer requires the provision of necessary residential and related services and facilities for persons with developmental disabilities so that such services and facilities are available to residents of the State and the Issuer at reasonable cost.
b. The Issuer desires to facilitate the selective development of the community and help to provide the range of services and employment opportunities required by the population. The Project will assist the Issuer in achieving those objectives; help to stabilize market valuation of the Issuer; help maintain a positive relationship between assessed valuation and debt; and enhance the image and reputation of the community.
c. On the basis of information made available to this Council by the Borrower it appears, and this Council hereby finds, that: (1) the Project constitutes properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2 of Section 469.153 of the Act; (2) the Project furthers the purposes stated in Section 469.152 of the Act; (3) the Project would not be undertaken but for the availability of financing under the Act and the willingness of the Issuer to furnish such financing; and (4) the effect of the Project, if undertaken, will be to: (i) encourage the development of economically sound industry and commerce, (ii) assist in the prevention of the emergence of blighted and marginal land, (iii) help prevent chronic unemployment, (iv) provide the range of service and employment opportunities required by the population, (v) help prevent the movement of talented and educated persons out of the State and to areas within the State where their services may not be as effectively used, (vi) promote more intensive development and appropriate use of land within the Issuer, eventually to increase the tax base of the community; and (vii) provide adequate residential and related services and facilities for persons with developmental disabilities to residents of the Issuer at a reasonable cost.
d. The Issuer acknowledges, finds, determines and declares that the provision of necessary residential and related services and facilities for persons with developmental disabilities so that such services and facilities are available to residents of the State at a reasonable cost is a public purpose.
Section 7. Approval.
a. The Project and the Notes are hereby given preliminary approval by the Issuer.
b. In accordance with Subdivision 3 of Section 469.154 of the Act, the Mayor or the Administrator, or their designee, is authorized and directed to submit the proposal for the Project to the Department of Trade and Economic Development of the State (DTED) requesting approval, and other officers, employees and agents of the Issuer are hereby authorized to provide DTED with such information as it may require.
c. The Borrower is hereby authorized to enter into such contracts, in their own names and not as agents of the Issuer, as may he necessary for the transactions described herein by any means available to them and in the manner they determine without advertisement for bids, but the Issuer will not be liable on such contracts.
Section 8. Limited Obligation. The Notes, when and if issued for the Project, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Issuer or the other Host Municipalities. (There will, however, be a charge, lien or encumbrance on the Project, which is not an asset of the Issuer or the other Host Municipalities.) The Notes, when and if issued, shall recite in substance that the Notes and the interest thereon, are payable solely from revenues received from the Project and property pledged for payment thereof, and shall not constitute a debt of the Issuer or the other Host Municipalities.
Section 9. Approval and Execution of Joint Powers Agreement.
a. The Joint Powers Agreement is hereby made a part of this Resolution as though fully set forth herein and is hereby approved in substantially the form presented to the Issuer Council. The Mayor and the Administrator are authorized and directed to execute, acknowledge, and/or deliver the Joint Powers Agreement on behalf of the Issuer with such changes, insertions, and omissions therein as the Issuer�s Attorney may hereafter deem appropriate, such execution to be conclusive evidence of approval of such document in accordance with the terms hereof
b. The Mayor and Administrator are authorized and directed to execute and deliver such other documents or certificates needed from the Issuer for the sale of the Notes.
c. The approvals in this Section are specifically subject to approval of the Joint Powers Agreement by the Host Municipalities and approval of the Project by DTED.
DULY ADOPTED BY THE CITY COUNCIL THIS 3rd DAY OF FEBRUARY, 2003.
EXHIBIT A
MOUNTAIN IRON, MINNESOTA
(THE DULUTH REGIONAL CARE CENTER PROJECT)
PROJECT DESCRIPTION
SERIES 2003A NOTE
LOCATION
TYPE OF FACILITY
ACTIVITIES TO BE FINANCED
1530 East 2nd Street
Duluth, Minnesota
6-bed residential facility serving developmentally disabled persons refinancing
320 West Winona
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons refinancing
4 North 59th Avenue West
Duluth, Minnesota
7-bed residential facility serving developmentally disabled persons refinancing
4861 Glendale Street
Duluth, Minnesota 4-bed residential facility serving developmentally disabled persons refinancing
Total for Series 2003A Note $648,800
SERIES 2003B NOTE
LOCATION
TYPE OF FACILITY
ACTIVITIES TO BE FINANCED
3715 West Fifth Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons refinancing
5495 Marion Lane
Mountain Iron, Minnesota
4-bed residential facility serving developmentally disabled persons refinancing
Total for Series 2003B Note $244,900
SERIES 2003C NOTE
LOCATION
TYPE OF FACILITY
ACTIVITIES TO BE FINANCED
Oak Ridge Drive, two blocks East of Stebner Road
Hermantown, Minnesota
4-bed residential facility serving developmentally disabled persons New Construction
323 90th Avenue West
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
1530 East 2nd Street
Duluth, Minnesota
6-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
1514 East 5th Street
Duluth, Minnesota
6-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
204-206 South 21St Avenue East
Duluth, Minnesota
7-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
5495 Marion Lane
Mountain Iron, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
101 West Mankato Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
1410 Brainerd Avenue
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
430 West Faribault Street
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
552 Anderson Road
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
2920 Piedmont Avenue
Duluth, Minnesota
2-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
4861 Glendale Street
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
4824 Daniels Road
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
420 East McCuen Street
Duluth, Minnesota
9-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
8790 Arbor Lane
Mountain Iron, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
4 North 59th Avenue West
Duluth, Minnesota
7-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
5729 West 8th Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
320 West Winona Street
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
3715 West 5th Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
1819 Melrose Avenue
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
4357 Martin Road
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
2812 Triggs Avenue
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
4130 West 8th Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling
Total for Series 2003C Note $635,700
NOTE
AMOUNT
Series 2003A Note $648,800
Series 2003B Note $244,900
Series 2003C Note $635,700
TOTAL, all Series 2003 Notes $1,529,400
