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08-566. t Council File # � � 5 � � Green Sheet # � W � � �S RESOLUTION PAUL, MINNESOTA Presented By Referred To RELATING TO CITY FINANCING FOR JIMMY LEE RECREATIONAL CENTER, INCLUDING AUTHORiZING THE SALE (TO THE IIRA) AND LEASEBACK OF AN INTEREST IN THE JIMMY LEE RECREATIONAL CENTER, AUTHORIZING A JOINT POWERS AGREEMENT AND A LEASE PURCHASE AGREEMENT THEREFOR, AND AUTHORTZING THE EXECUTION OF VARIOUS DOCUMENTS 8 WHEREAS, the City of Saint Paul, Minnesota (the "City"), has heretofore 9 acquired and constructed the Jimmy Lee Recreational Center (the "Project"), and will soon 10 complete all improvements to make it a fully functional recreational center; and 11 WfIEREAS, the City of Saint Paul, Minnesota (the "City"), under its CiYy Charter 12 and Minnesota Statutes, Section 465.71 (the "Lease-Purchase AcY'), is authorized to enter into a 13 lease purchase agreement for real or personal property, and proposes to do so to provide long 14 term financing for the Project; and 15 WHEREAS, pursuant to Laws of Minnesota for 1992, Chapter 376, Article 4(the 16 "Local Law"), Minnesota Statutes, Sections 469.001 through 469.047 (the "I1RA Act"), and 17 Sections 469.090 through 4691082 (the 'BDA Act"), the Aousing and Redevelopment Authority 18 of the City of Saint Paul, Minnesota (the "HRA"), may issue revenue bonds to finance the 19 acquisition of an undivided ownership interest in the Proj ect and its leaseback to the City; and 20 pursuant to the general powers granted to the City under its City Charter and the Lease-Purchase 21 Act, the City may lease the Project or an interest therein from the HRA pursuant to a non- 22 appropriation clause lease-purchase agreement; and 23 WHEREAS, the City has requested that the HRA issue, and the HRA wishes to 24 issue, its Recreational Facility Lease Revenue Bonds, Series 2008 (Jimmy Lee Recreational 25 Center) (the "Bonds"), pursuant to an Indenture of Trust dated as of June 1, 2008 (the 26 °Indenture"), by and between the F1RA and U.S. Bank National Association (the "Trustee"), to 27 finance the acquisition from the City of an undivided interest in the Project and the leaseback of 28 that interest in the Project to the City; and as 2167667vdoc 5/21 /08 1 WHEREAS, Minnesota Statutes, Section 471.59 (the "Joint Powers AcP'), 2 authorizes the exercise ofpowers jointly, and the co-ownership and co-tenancy rights to the 3 Project of the City and HRA are set forth in a Joint Powers Agreement dated as of June 1, 2008 4 (the "Joint Powers Agreement); and 5 WHEREAS, the Bonds are to be secured by the Indenture and by a Lease 6 Agreement dated as of June 1, 2008 (the "Lease"), by and between the HRA and City, under 7 which payments by the City pursuant to the Lease will be pledged to the payment of the Bonds 8 and the City may re-acquire the interest in the Jimmy Lee Recreational Center for $1.00 at the 9 end of the term of the Lease; and under the Lease the City has the right, as required by Lease- 10 Purchase Act, to terminate the Lease at the end of any fiscai year during its term; and 11 WHEREAS, it is necessary and desirable and in the best interests of the HRA and 12 City for the HRA to issue the Bonds in the aggregate principal amount not to exceed $8,000,000 13 on the terms and conditions set forth in the Indenture, and secured as provided in the Indenture 14 and Lease, for the foregoing purposes; and 15 16 17 18 19 20 21 22 23 24 25 26 not: WHEREAS, the HRA's Bonds will bear tax-exempt interest but the Lease will NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Documents Submitted. In connection with the proposed Lease, forms of the following documents have been submitted to the City Council for approval: (a) (b) the Joint Powers Agreement; the Lease; (c) a Bond Purchase Ag (the "Bond Purchase AgreemenY') to be entered into by and among the HRA, the City and RBC Capital Markets Corporation (the "Underwriter"); (d) a Continuing Disclosure Agreement relating to the Bonds by and among the HRA, City and Trustee (the "Continuing Disclosure Agreement"); and 27 (e) a Preliminary Official Statement relating to the Bonds. m 29 30 Ttems (a), (b), (c) and (d) are referced to in this Resolution as the "Lease Documents". 2. Findin�s under Charter. The City Council hereby make the following findings with respect to its powers under the City's home rule charter (the "Charter"): 31 (a) the sale of an interest in the Project and its leaseback does not constitute a 32 disposition or diversion of land heretofore acquired for park purposes within the meaning of 33 Section 13A1.1 ofthe Charter; and therefore the City is not required to acquire additional park 34 lands or to maintain in a separate fund for acquiring additional park lands the net proceeds or 35 funds received from the sale of an interest in the Project; and 452167667vdoc 5/2]/OS (b) the sale of an interest in the Project and its leaseback does not constitute a disposition or conveyance of property within the meaning of Section 13.04 of the Charter; and therefore the City is not required to use the net cash proceeds of the sale of an interest in the Project to retire any indebtedness incurred by the City in the acquisition or improvement of the Project. 3. Other Findin¢s. The City Council hereby makes the following findings: (a) under the Local Law, the City and IIRA have implemented a citywide economic development program, and the HRA's financing of an interest in the Project is a part of that program; and 10 (b) the $6,800,000 to be paid to the City for an undivided 42.5% ownership interest in 11 the Jimmy Lee Recreational Center is a fair price therefor and represents the fair mazket value 12 thereof. 13 4. Lease Documents. The 7oint Powers Agreement, Lease, Bond Purchase 14 Agreement and Continuing Disclosure Agreement are hereby approved in substantially the forms 15 submitted, with such deletions, completions and changes therein as are necessary and appropriate 16 and approved by Bond Counsel, the City Attorney and City Staff. The Mayor (or, as appropriate, 17 the executive assistant to the Mayor or the Mayor's designee) and Director, Office of Financial 18 Services, are hereby authorized and directed to execute the Joint Powers Agreement, Lease, 19 Continuing Disclosure Agreement and Bond Purchase Agreement. Such officers are also 20 authorized and directed to execute such other docuxnents and certificates as are contemplated 21 thereby or necessary in connection therewith. 22 5. Pn Committee. There is hereby delegated to (i) the Executive 23 Director of the HRA (or her designee), (ii) a person designated by Ehlers and Associates an 24 (iii�° T-°^°..�°- �r'h° �';`" °^a �;-,) the City Debt Manager (collectively, the "Pricing 25 Committee") the authority to agree with the Underwriter on the principal amount of Bonds to 26 mature or be payable each year during their term not later than 2033, optional and scheduled 27 mandatory redemption provisions, the interest rate to be borne by each maturity of the Bonds, 28 and the original issue discount, if any, to apply to all or any maturities of the Bonds; provided 29 that true net interest cost of the Bonds shall not exceed six percent (6.00%) per annum and the 30 maYimum original issue discount for any Bond shall not exceed two percent (2.00%) of the 31 principal amount thereof. 32 The determinations of the Pricing Committee as to terms shall be set forth in a 33 certificate signed by its members, and such terms shall be included in the Bond Purchase 34 Agreement, in the Indenture, in the form of the Bonds, and in other agreements and docwnents 35 as appropriate. Execution of the Bond Purchase Agreement by and on behalf of the City as 36 provided herein shall be deemed conclusive ratification and approval of the determinations of the 37 Pricing Committee. 38 The Underwriter's discount far the purchase price of the Bonds shall be nine- 39 tenths of one percent (0.9%) of the principal amount thereof (reducing for this purpose the 40 principal amount by any original issue discount or increasing it by any original issue premium). 4�2167667vdoc 5/Z1/08 4 10 11 12 13 14 15 16 17 18 6. Chanaes; Related Documents. The approval hereby given to the various Lease Documents includes approval of such additional details therein as may be necessary and appropriate, such modifications thereof, deletions therefrom and additions thereto prior to their execution as may be necessary and appropriate and approved by the City Attomey, Bond Counsel, appropriate City staff and the City officials authorized herein to execute them, and includes approval of such related instntments as may be required to be executed in connection with the various documents refened to above. The City Attorney, Bond Counsel, City officials and City sta£f are hereby authorized to approve said changes and related instruments on behalf of the City upon determination by them that such changes and related instruments aze consistent with this Resolution and necessary or desirable to effectuate the purposes hereof. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. In the absence of the Mayor or Director, Office of Financial Services, any of the documents authorized by this Resolution to be executed by them may be executed by the Assistant Mayor or Acting Director, Office of Financial Services, respectively, or by any other duly designated acting official. 7. P ose. The Joint Powers Agreement and Lease shall provide funds far the long term financing of the Project. 19 8. Pre�avment; Purchase. The Lease shall be subject to prepayment at the 20 option of the City upon exercise of the purchase option. At the expiration of the Lease after its 21 full term, the City shall have the option to purchase the Project for $1.00. 22 9. Funds: Arbitrage. The proceeds of the Bonds shall be held in the custody 23 of the Trustee pursuant to the Indenture but the City may direct their inveshnent. Payments on 24 the Lease shall be made from annual appropriations, and moneys to make such payment shall not 25 be segregated in any special fund. 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 No portion of those proceeds of the Bonds within the control of the City sha11 be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Lease is entered into, and (2) in addition to the above in an amount not greater than $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in any City account which will be used to make payments on the Lease in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, those proceeds of the Bonds within the control of the City and moneys used to make payments on the Lease sha11 not be invested in obligations or deposits issued by, guaranteed by ar insured by the United States or any agency or inshzunentality thereof if and to the extent that such inveshnent would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 452167667vdoc sizvos 4 10. No General Obligation Pled�e; Initial Apnropriation. The Lease is not a general obligation of the City but rather is payable from amounts to be annually appropriated, and the full faith, credit and tasing powers of the City shall not be and are not pledged. Payments on the Lease are due semiannually in arrears over its 25-year term. The City hereby makes an initial appropriation for the portion of the rent accruing and payable through June l, 2009. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ll. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the F3RA, and to the attomeys approving the legality of the Bonds, certified copies of all proceedings and records of the City relating to the Lease and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 12. Ne¢ative Covenants as to Use of Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that it will take no actions over the term of the Lease that would cause the Bonds to be private activity bonds, and the average term of the Lease is not longer than reasonably necessary for the governmental pwpose of the Lease. The City hereby covenants not to use those proceeds of the Bonds which are within the controi of the City in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of Section 144(g) of the Code. 25 �3. Temunation of Lease. The Lease provides the City with the option to 26 terminate at the end of any fiscal year during its term. The City and City Council on the date this 27 Resolution is adopted intend and reasonably expect to appropriate and to pay the rent due 28 pursuant to the Lease for the entire term of the Lease. 29 14. Severabilitv. If any section, paragraph or provision of this resolution 30 shall be held to be invalid or unenfarceable far any reason, the invalidity or unenforceability of 31 such section, paragraph or provision shall not affect any of the remaining provisions of this 32 resolution. 33 34 35 15. Headines. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit ar define the meaning of any provision hereof. 452167667vdoc 5/21/08 Yeas Nays Absent Bostrom f Carter �/ Hazris /{[� �}-iN Helgen f Lan4y f Stark ✓ Thune Requested by Deparhnent of: By: Approved by the Office of Financial Services Adopted by Council: Date � ��'Q' ��'� $y� -- r Secretary Approved by City Attorney By: � .. . � �cgL .. ��� � by Mayor for Submission to Council 452167667vdoc 527/08 Council File # W' S Green Sheet # 3053415 Presented By Referred To RESOLUTION SAINT PAUL, MINNESOTA �'D 1 RELATING TO CITY FINANCING FOR JIMMY LEE 2 RECREATIONAL CENTER, INCLUDING 3 AUTHORIZING THE SALE (TO THE HRA) AND LEASEBACK OF AN 4 INTEREST IN THE JINIMY LEE RECREATIONAL CENTER, 5 AUTHORIZING A JOINT POWERS AGREEMENT AND A LEASE 6 PURCHASE AGREEMENT THEREFOR, AND 7 AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS 8 WHEREAS, the City of Saint Paul, Minnesota (the "City"), has heretofore 9 acquired and conshucted the Jimmy Lee Recreational Center (the "Proj ecY'), and will soon 10 complete all improvements to make it a fully functional recreational center; and 11 WHEREAS, the City of Saint Paui, Minnesota (the "City"), under its City Charter 12 and Minnesota Stahrtes, Section 465.71 (the "Lease-Purchase AcY'), is authorized to enter into a 13 lease purchase agreement for real or personal property, and proposes to do so to provide long 14 term financing for the Proj ect; and 15 WHEREAS, puxsuant to Laws of Minnesota for 1992, Chaptex 376, Article 4(the 16 "Local Law"), Minnesota Statutes, Sections 469.001 through 469.047 (the "FIRA AcY'), and 17 Sections 469.090 through 4691082 (the 'BDA AcY'), the Housing and Redevelopment Authority 18 of the City of Saint Paul, Minnesota (the "HRA"), may issue revenue bonds to finance the 19 acquisition of an undivided ownership interest in the Project and its leaseback to the City; and 20 pursuant to the general powers granted to the City under its City Charter and the Lease-Purchase 21 Act, the City may lease the Project or an interest therein from the HRA pursuant to a non- 22 appropriation clause lease-purchase agreement; and 23 WHEREAS, the City has requested that the HRA issue, and the HRA wishes to 24 issue, its Recreational Facility Lease Revenue Bonds, Series 2008 (3immy Lee RecreaYional 25 Center) (the "Bonds"), pursuant to an Indenture of Trust dated as of June 1, 2008 (the 26 "Indenture"), by and between the I1RA and U.S. Bank National Association (the "Tmstee"), Co 27 finance the acquisition from the City of an undivided interest in the Project and the leaseback of 28 that interest in the Project to the City; and 29 WHEREAS, Minnesota Statutes, Section 471.59 (the "Joint Powers AcY'), 30 authorizes the exercise of powers jointly, and the co-ownership and co-tenancy rights to the z�6�6a��a 1i � / 1 Project of the City and HRt� aze set forth in a Joint Powers Agreement dated as of June 1, 2008 2 (the "Joint Powers Agreement); and 3 WHEREAS, the Bonds are to be secured by the Indenture and by a Lease 4 Agreement dated as of Jun� 1, 2008 (the "Lease"), by and between the H�RA and City, under 5 which payments by the City pursuant to the Lease will be pledged to the payment of the Bonds 6 and the City may re-acquire the interest in the Jimmy Lee Recreational Center for $1.QQ at the 7 end of the term of the Lease; and under the Lease the City has the right, as required by Lease- 8 Purchase Act, to terminate the Lease at the end of any fiscal yeaz during its term; and 9 WHEREAS, it is necessary and desirable and in the best interests of the FI12A and 10 City for the HRA to issue the Bonds in the aggregate principal amount not to exceed $8,000,000 11 on the terms and conditions set forth in the Indenture, and secured as provided in the Indenture 12 and Lease, for the foregoing purposes; and 13 WHEREAS, the HRA's Bonds will bear taY-exempt interest but the Lease will 14 not: 15 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint 16 Paul, Minnesota, as follows: 17 1. Documents Submitted. In connection with the proposed Lease, forms of 18 the following documents have been submitted to the City Council for approval: 19 (a) the Joint Powers Agreement; 20 (b) the Lease; 21 (c) a Bond Purchase Agreement (the "Bond Purchase AgreemenY') to be entered into 22 by and among the HRA, the City and RBC Capital Markets Corporation (the "Underwriter"); 23 (d) a Continuing Disclosure Agreement relating to the Bonds by and among the 24 F3RA, City and Trustee (the "Continuing Disclosure AgreemenY'); and 25 (e) a Preliminary Official Statement relating to the Bonds. 26 Items (a), (b), (c) and (d) are referred to in this Resolution as the "Lease Documents". 27 2. Findin�s under Charter. The City Council hereby make the following 28 findings with respect to its powers under the City's home rule charter (the "Charter"): 29 (a) the sale of an interest in the Project and its leaseback does not constitute a 30 disposition or diversion of land heretofore acquired for park purposes within the meaning of 31 Section 13.01.1 of the Charter; and therefore the City is not required to acquire additional park 32 lands or to maintain in a separate fund for acquiring additianal park lands the net proceeds or 33 funds received from the sale of an interest in the Project; and 2167667v4 2 bU '�'(a lo 1 (b) the sale of an interest in the Project and its leaseback does not constitute a 2 disposition or conveyance of property within the meaning of Section 13.04 of the Charter; and 3 therefore the City is not required to use the net cash proceeds of the sale of an interest in the 4 Project to retire any indebtedness incurred by the City in the acquisition or improvement of the 5 Project. 3. Other Findin¢s. The City Council hereby makes the following findings: 7 (a) under the Local Law, the City and HRA have implemented a citywide economic 8 development pro�am, and the I3RA's financing of an interest in the Project is a part of that 9 program; and 10 (b) the $6,800,000 to be paid to the City for an undivided 42.5% ownership interest in 11 the Jimmy Lee Recreational Center is a fair price therefor and represents the fair market value 12 thereof. 13 4. Lease Documents. The Joint Powers Agreement, Lease, Bond Purchase 14 Agreement and Continuing Disclosure Agreement are hereby approved in substantiaily the forms 15 submitted, with such deletions, completions and changes therein as are necessary and appropriate 16 and approved by Bond Counsel, the City Attorney and City Staff. The Mayor (or, as appropriate, 17 the executive assistant to the Mayor or the Mayar's designee) and Director, Office of Financial 18 Services, are hereby authorized and directed to execute the Joint Powers Agreement, Lease, 19 Continuing Disclosure Agreement and Bond Purchase Agreement. Such officers are also 20 authorized and directed to execute such other documents and certificates as aze contemplated 21 thereby or necessary in connection therewith. 22 5. Pn•cin� Cotnmittee. There is hereby delegated to (i) the Executive 23 Director of the HRA (or her designee), (ii) a person designated by Ehlers and Associates, (iii) the 24 Treasurer of the City and (iv) the City Debt Manager (collectively, the "Pricing Committee") the 25 authority to agree with the Underwriter on the principal amount of Bonds to mature or be 26 payable each year during their term not later than 2033, optional and scheduled mandatory 27 redemption provisions, the interest rate to be borne by each maturity of the Bonds, and the 28 original issue discount, if any, to apply to all or any maturities of the Bonds; provided that true 29 net interest cost of the Bonds shall not exceed six percent (6.00%) per annum and the maximum 30 original issue discount for any Bond shall not exceed two percent (2.00%) of the principal 31 amount thereof. 32 The determinations of the Pricing Committee as to terms shall be set forth in a 33 cer�ificate signed by its members, and such terms shall be included in the Bond Purchase 34 Agreement, in the Indenture, in the form of the Bonds, and in other agreements and documents 35 as appropriate. Execution of the Bond Purchase Agreement by and on behalf of the City as 36 provided herein shall be deemed conclusive ratification and approval of the determinations of the 37 Pricing Committee. 38 The Underwriter's discount for the purchase price of the Bonds shall be nine- 39 tenths of one percent (0.9%) of the principal amount thereof (reducing for this purpose the 40 principal amount by any original issue discount or increasing it by any original issue premium). 2167667v4 a�-��� � 1 6. ChanQes; Related Documents. The approval hereby given to the various 2 Lease Documents includes approval of such additional details therein as may be necessary and 3 appropriate, such modifications thereof, deletions therefrom and additions thereto prior to their 4 execution as may be necessary and appropriate and approved by the City Attomey, Bond 5 Counsel, appropriate City staff and the City officials authorized herein to execute them, and 6 includes approval of such related instnunents as may be required to be executed in connection 7 with the various documents refened to above. The City Attorney, Bond Counsel, City officials 8 and Gity staff are hereby authorized to approve said changes and related instruments on behalf of 9 the City upon determination by them that such changes and related inshuments are consistent 10 with this Resolution and necessary or desirable to effectuate the purposes hereof. The execution 11 of any instrument by the appropriate officer or officers of the City herein authorized sha11 be 12 conclusive evidence of the approval of such documents in accordance with the terms hereo£ In 13 the absence of the Mayor or Director, Office of Financial Services, any of the documents 14 authorized by this Resolution to be executed by them may be executed by the Assistant Mayor or 15 Acting Director, Office of Financial Services, respectively, or by any other duly designated 16 17 18 acting officiai. 7. Pumose. The Joint Powers Agreement and Lease shall provide funds for the long term financing of the Project. 19 8. Prepavment: Purchase. The Lease shall be subject to prepayment at the 20 option of the City upon exercise of the purchase option. At the expiration of the Lease after its 21 full term, the City shall have the option to purchase the Project for $1.00. 22 9. Funds; Arbitraee. The proceeds of the Bonds shall be held in the custody 23 of the Trustee pursuant to the Indenture but the City may direct their investment. Payments on 24 the Lease shall be made from annual appropriations, and moneys to make such payment shall not 25 be segregated in any special fund. 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 No portion of those proceeds of the Bonds within the control of the City shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed fot the purpose for which the Lease is entered into, and (2) in addition to the above in an atnount not greater than $100,000. To this effect, any proceeds of the Bonds and any suxns from time to time held in any City account which will be used to make payments on the Lease in excess of amowits which under then-applicable federai arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such inveshnents after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, those proceeds of the Bonds within the control of the City and moneys used to make payments on the Lease sha11 not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Intemal Revenue Code of 1986, as amended (the "Code"). z�e�e6��a 4 �� i I/ 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 10. No General Obli¢ation Pled¢e: Initial Appropriation. The Lease is not a general obligation of the City but rather is payable from amounts to be annually appropriated, and the full faith, credit and taxing powers of the City shall not be and are not pledged. Payments on the Lease are due semiannually in arrears over its 25-year term. The City hereby makes an initial appropriation far the portion of the rent accruing and payable through June 1, 2009. 11. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the HRA, and to the attorneys approving the legality of the Bonds, certified copies of ail proceedings and records of the City relating to the Lease and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appeaz from the books and records under their custody and contro] or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 12. Neeative Covenants as to Use of Proceeds and Proiect. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment anangements for the cost of the Project, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that it will take no actions over the term of the Lease that would cause the Bonds to be private activity bonds, and the average term of the Lease is not longer than reasonably necessary for the governmental pwpose of the Lease. The City hereby covenants not to use those proceeds of the Bonds which are within the control of the City in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of Section 149(g) of the Code. 25 13. Termination of Lease. The Lease provides the City with the option to 26 terminate at the end of any fiscal year during its term. The City and City Council on the date this 27 Resolution is adopted intend and reasonably expect to appropriate and to pay the rent due 28 pursuant to the Lease for the entire term of the Lease. 29 14. Severabilitv. If any section, paragraph or provision of this resolution 30 shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of 31 such section, paragraph or provision shall not affect any of the remaining provisions of this 32 resolution. 33 34 35 15. Headines. Headings in this resolution aze included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. 2167667v4 Yeas Nays Absent Bostrom Carter x�s Helgen Lantry Stark Thune Adopted by Council: Date � Adoption Certified by Council Secretary AP � By: BY Approved by Mayor: Date Ap � By: BY� 6g-51��v Services 2167669v4 Requested by Depariment ot � Green Sheet Green Sh'eet Green Sheet Green Sheet Green Sheet Green Sheet � !. � � FS – Finaacial Services O6-MAY-0B Green Sheet NO: 30534'15 Contact person & Phone: Bob Geurs 266-8837 Must Be on Coi 21-MAY-08 .� Doc. Type: RESOLUTION W/$ TRANSAC E-Document Requir¢d: Y Document ContacY ConqctPhone: 266-8837 �/ Assign Number Fw Routing Qrder ToW I# of Signature Pages _(Clip All Locations tor Signature) 0 mapcial Services 1 inaacial Services De ariment Director 2 ' ancial Services ce Financiai Services �/j 3 � Attorne . �� �� � Y/ 7• 4 s or's Office Ma or/Assistant � 5 ound Ci Coancit 6 ' Cler Ci Clerk r /�_ 5 � ��v` — � Approve resolution authorizing 25 yeaz financing through a City I.ease with HRA for improvemenu to the Jimmy Lee Recrearional Center ivauoi is. npp�vvE �AJ Of h Planning Commission CIB Committee Civil Service Commission 1. Has this persoNfirm ever woriced under a contract for this department? Yes No 2. Has this persoNfirtn ever been a city employee? Yes No 3. Does this personifirm possess a skill not normally possessed by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): � � HRA will assist the City through its Recreational Facility Lease Revenue Bonds, Series 2008 for 25 years to allow the Ciry to have conshucrion funds for Junmy Lee (3.6M) and other CIB projects (3.2M) for $6.8 million total. AdvanWges If Approved: City will have funds required by the 2008 budget I Disadvantages if Approved: None known Disadvantages If Not Approved: The City will not have sufficient financing for completing Jimmy I,ee Recreational Center or other CIB projects Trensaction: $7,700,000.00 Funding Source: Financial Infortnation: (Expiain) ` Cost/Revenue Budgeted: y Activity�Number: