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Home My WebLink AboutHRA Item 03July 5, 2016 Item No.________ HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION APPROVING THE REFINANCING OF THE THIRD SHEET ICE ARENA PROJECT AND THE ISSUANCE OF LEASE REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTERS 465, 469, 471 AND 475 Proposed Action Staff recommends adoption of the following motion: Move to approve a Resolution Approving the Refinancing of the Third Sheet Ice Arena Project and the Issuance of Lease Revenue Refunding Bonds under Minnesota Statutes, Chapters 465, 469, 471 and 475. Overview Passage of this motion will result in the issuance of Lease Revenue Refunding Bonds to refinance the HRA Lease Revenue Bonds, Series 2006. Primary Issues to Consider • None Supporting Information • Resolution (Prepared by Dorsey & Whitney, LLP) • Senior Underwriter Recommendation Letter • Draft Bond Issuance Calendar Financial Impact: $ Budgeted: Y☒ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Jerilyn Erickson, Finance Director Varies Taxes & School District Contribution CERTIFICATE AS TO RESOLUTION I, the undersigned, being the duly qualified and acting recording officer of the Housing and Redevelopment Authority of the City of Lakeville, Minnesota (the Authority), hereby certify that the attached resolution is a true copy of Resolution No. ____, entitled: “RESOLUTION APPROVING THE REFINANCING OF THE THIRD SHEET ICE ARENA PROJECT AND THE ISSUANCE OF LEASE REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTERS 465, 469, 471 AND 475 THEREFOR” (the Resolution), on file in the official records of the Authority in my legal custody; that the Resolution was duly adopted by the Board of Commissioners at a meeting held on July 5, 2016 and attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. WITNESS my hand officially this 5th day of July, 2016. ____________________________________ Secretary 2 HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF LAKEVILLE, MINNESOTA RESOLUTION Date _____________________________ Resolution No. _______________________ Motion By ________________________ Seconded By ________________________ RESOLUTION APPROVING THE REFINANCING OF THE THIRD SHEET ICE ARENA PROJECT AND THE ISSUANCE OF LEASE REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTERS 465, 469, 471 AND 475 THEREFOR BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Lakeville, Minnesota (the Authority), as follows: Section 1. Recitals. Pursuant to notice duly published in accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended (the Code), a public hearing was held on July 5, 2016, on the proposal that the Authority issue its lease revenue bonds in an aggregate principal amount not to exceed $8,100,000 (the Bonds), under Sections 465.71, 469.012, 469.041, 469.034, 469.035, 471.59, and 475.79, as amended, for the purpose of refinancing the Authority’s Lease Revenue Bonds (Ice Arena Project), Series 2006, dated, as originally issued, as of December 1, 2006 and issued in the original principal amount of $9,230,000 (the Refunded Bonds). The Refunded Bonds were issued for the purpose of financing a portion or all of the costs of construction of the third sheet ice arena facility (the Facility) located at 8525 215th Street in the City of Lakeville, Minnesota (the City) used for the benefit of qualified 501(c)(3) organizations, including but not limited to the Lakeville Hockey Association, other hockey and figure skating associations, the general public, the City, and Independent School District No. 194. The Facility will be owned by the Authority, leased to the City pursuant to a lease-purchase agreement, and subleased to Lakeville Arenas, a Minnesota joint powers entity, for operation pursuant to a sublease agreement. Section 2. Authorization and Approval. Solely for purposes of Section 147(f) of the Code, the Authority hereby approves the issuance of the Bonds in a principal amount not to exceed $8,625,000 by the Authority to refinance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish any obligation on the part of the Authority, the City or this Board to cause the issuance of the Bonds. The Bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City or the Authority. Section 3. Appointment of Underwriter. The Bonds authorized hereby shall be sold to Piper Jaffray & Co., of Minneapolis, Minnesota (the Purchaser). The officers of the Authority are authorized, in cooperation with the Purchaser and Springsted Incorporated, to prepare an Official Statement to be distributed to prospective purchasers of the Bonds. APPROVED AND ADOPTED this 5th day of July, 2016. HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF LAKEVILLE, MINNESOTA By:_________________________________ Chairperson ATTEST: ________________________________ Secretary HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF LAKEVILLE, MINNESOTA Refunding Lease Revenue Bonds, Series 2016 June 29, 2016 Schedule of Events Date Event Responsible Party June 28, 2016 Sale Recommendations and Bond Resolution delivered to HRA/City.Springsted Dorsey & Whitney June 29, 2016 Request for Official Statement Information sent to HRA/City Staff.Springsted July 5, 2016 Finalize Bond structure and prepare Term Sheet.Springsted July 5, 2016 HRA/City Board/Council conducts Public Hearing and considers Bond Resolution authorizing the Bond sale. HRA/City Board/Council July 8, 2016 Information forwarded to Springsted for preparation of the Preliminary Official Statement. HRA/City Staff July 8, 2016 First draft of Bond documents distributed for review.Dorsey & Whitney July 20, 2016 First draft of Preliminary Official Statement sent out to HRA/City Staff, Underwriter and Dorsey & Whitney for review. Springsted July 26, 2016 Drafting session All Parties July 28, 2016 Second draft of Preliminary Official Statement and Bond documents sent out to Moody's, HRA/City Staff, Underwriter and Dorsey & Whitney for review. Springsted Week of August 1, 2016 Rating conference.Moody's HRA/City StaffAugust 3, 2016 Draft of Award Resolution provided to Springsted (to be included in the information sent to the rating agency.) Dorsey & Whitney SMTW T hFS SMTW T hFS SMTW T hFS 1234567 1234 12 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 456789 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30 31 SMTW T hFS SMTW T hFS SMTW T hFS 123456 123 1 7 8 9 1 01 11 21 3 4 5 6789 1 0 2345678 14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15 21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22 28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29 30 31 May 1, 2016 June 1, 2016 July 1, 2016 August 1, 2016 September 1, 2016 October 1, 2016 Springsted 0888.888 Schedule of Events Date Event Responsible Party Est. August 10, 2016 Receipt of rating.Moody's August 11, 2016 Print POS with rating on cover.Springsted TBD Form of Parameters Resolution delivered to the HRA/City.Dorsey & Whitney TBD after discussions with Underwriter HRA/City adopt parameters resolutiion HRA/City Board/Council TBD after discussions with Underwriter Pricing and execution of Bond Purchase Agreement for the Bonds by HRA/City.HRA/City Springsted TBD 7days after pricing Distribution of Final Official Statement.Springsted TBD Settlement of the Bonds; receipt of Bond proceeds.HRA/City Staff Dorsey & Whitney Springsted Springsted 0888.888