HomeMy WebLinkAboutItem 06.pILI Date December 19, 2011 �,_:__ Item
RESOLUTION CALLING THE PUBLIC FACILITY LEASE REVENUE
BONDS, SERIES 2002 A AND AUTHORIZING THE TRANSFER OF
OWNERSHIP OF FIRE STATION #4 FROM THE LAKEVILLE HOUSING
AND REDEVELOPMENT AUTHORITY TO THE CITY OF LAKEVILLE
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Resolution Caning the
City of Lakeville.
Approval of the Resolution will result in the retirement of the HRA Lease Revenue Bonds Series
2002 A which financed the construction of Fire Station #4.
Overview
The 2012 budget provided the financing for the calling (retirement) of the HRA Public Facility
Lease Revenue Bonds of 2002A, effective February 1, 2012. The retirement of the debt will be
financed by the Liquor Fund. The debt was initially issued in 2002 to finance the construction of
Fire Station. #4.
The debt was a Lease Revenue Obligation issued by the Housing and Redevelopment
Authority. The title of the property was therefore in the name of the Lakeville HRA and was
pledged as collateral. With final payment of the debt, the title will be transferred to the City of
Lakeville.
Primary Issues to Consider
• Financing for calling the bonds. The principal payment and accrued interest to February 1,
2012 will be paid from the liquor fund (approximately $1.4 million) and all proceeds from the
Reserve Fund which is held in a US Bank trust account pursuant to the bond covenants.
Supporting Information
e ra
Ar
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Dennis eller. Finance Director
Financial Impact: $1.775 million principal plus interest budgeted: Yes Source: Liquor Fund
Related Documents (CIP, ERP, etc.):
Notes:
Date December 19, 2011 Resolution No.
Motion By
Seconded By
RESOLUTION CALLING THE PUBLIC FACILITY LEASE
REVENUE BONDS, SERIES 2002 A AND AUTHORIZING
THE TRANSFER OF OWNERSHIP OF FT_R_F STATION #4
FROM THE LAKEVILLE HOUSING AND REDEVELOPMENT
AUTHORITY TO THE CITY OF LAKEVILLE.
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the
City), as follows:
Section 1. Pursuant to a Trust Indenture, dated as of April 15, 2002 (the
Indenture), between The Housing and Redevelopment Authority of Lakeville, Minnesota
(the Authority) and U.S. ,Bank National Association, as trustee (the Trustee), the
Authority has heretofore issued its Public Facility Lease Revenue Bonds, Series 2002A,
dated as of April 15, 2002, in the original principal amount of $2,535,000 (the Bonds), to
finance the acquisition and construction of a fire station and fire truck (the Building and
the Equipment) and to lease certain land, the Building and the Equipment (the Project) to
the City pursuant to a Lease Agreement, dated as of April 15, 2002, between the
Authority and the City.
Section 2. Under Section 11.4 of the Lease, the City is granted the option of
purchasing the Project, pursuant to the conditions set forth therein, and causing the Bonds
subject to prepayment on February 1, 2012 (the Redemption Date) to be redeemed as set
forth in Article III of the Indenture.
Section 3. This Council has determined it to be in the best interest of the City
to exercise its option to purchase the Project from the Authority and to cause the Bonds
maturing in the years 2013 through 2023, outstanding in the aggregate principal amount
of $1,665,000 (the Refunded Bonds), to be redeemed by the Trustee.
Section 4. This Council has determined that there exist sufficient funds
available to pay to the Trustee an amount equal to the Purchase Price (as defined in the
Lease) for the Project and hereby authorizes the giving of written notice to the Authority
and the Trustee of its intent to purchase the Project under Section 11.4(a) of the Lease
and to redeem the Refunded Bonds.
APPROVED AND ADOPTED this day of December, 2011.
ATTEST:
CITY OF LAKEVILLE, MINNESOTA
By:
Mark Bellows, Mayor
Charlene Friedges, City Clerk