HomeMy WebLinkAbout17-052CITY OF LAKEVILLE
RESOLUTION NO. 17-52
RESOLUTION APPROVING FEASIBILTY REPORT, ORDERING IMPROVEMENTS AND
DECLARING INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS FOR 222nd STREET IMPROVEMENT PROJECT
WHEREAS, on April 17, 2017, the City Council approved a resolution accepting a petition from
Launch Properties, LLC on behalf of Hat Trick Investments, LLC requesting that the City
construct and finance the public improvements associated with the Launch Park First Addition
development project and be assessed for the entire cost of the improvements;
WHEREAS, The Internal Revenue Service has issued Treasury Reg. 1.150-2 (the
"Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, The City expects to incur certain expenditures that may be financed temporarily
from sources other than bonds, and later reimbursed from the proceeds of tax-exempt bonds;
and
WHEREAS, The City has determined to make this declaration of official intent ("Declaration")
to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement
regulations; and
WHEREAS, The total estimated general obligation bonds to be issued for this project are
$1,766,477.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Lakeville,
Minnesota:
1. The 222nd Street and Utility Improvement is necessary, cost-effective, and feasible as
detailed in the feasibility report.
2. The 222nd Street and Utility Improvement Project is hereby ordered as identified in the
Feasibility Report for Project 17-07, dated April 17, 2017.
3. Such improvement has no relation to the comprehensive municipal plan.
4. Staff is hereby authorized to prepare plans and specifications for the making of such
improvements.
5. The City reasonably expects to reimburse the expenditures made for the entire cost of the
project from the proceeds of bonds in an estimated maximum principal amount of
$1,766,477. All reimbursed expenditures will be capital expenditures, costs of issuance of
the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3)
of the Reimbursement Regulations.
6. This Declaration has been made no later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of
bonds, except for the following expenditures: a) costs of issuance of bonds; b) costs in an
amount not in excess of $100,000 or five percent of the proceeds of an issue; or c)
"preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate
issue price of the issue or issues that are reasonably expected by the City to finance the
project for which the preliminary expenditures were incurred. The term preliminary
expenditures" includes architectural, engineering, surveying, bond issuance, and similar
costs that are incurred prior to commencement of acquisition, construction or
rehabilitation of a project, other than land acquisition, site preparation, and similar costs
incident to commencement of construction.
7. This Declaration is an expression of the reasonable expectations of the City based on the
facts and circumstances known to the City as the date hereof. The anticipated original
expenditures for the Project and the principal amount of the bonds described in
paragraph 3 are consistent with the City's budgetary and financial circumstances. No
sources other than proceeds of bonds to be issued by the City are, or are reasonably
expected to be, reserved, allocated on a long term basis, or otherwise set aside pursuant to
the City's budget or financial policies to pay such Project expenditures.
8. This Declaration is intended to constitute a declaration of the official intent for the
purposes of the Reimbursement Regulations.
ADOPTED by the Lakeville City Council this 17`h day of April, 2017
WWI -
Douglas
D• P. • •Mayor
C
Charlene Friedges, City Pr