15-077CITY OF SHOREWOOD
RESOLUTION NO. 15 -077
RESOLUTION GIVING PRELIMINARY APPROVAL TO
ISSUANCE OF REFUNDING BONDS RELATED TO
CERTAIN PUBLIC SAFETY FACILITIES
BE IT RESOLVED By the City Council (the "Council ") of the City of Shorewood, Minnesota
( "Shorewood ") as follows:
Section 1. Recitals; The West Side Fire Project.
1.01. The Excelsior Fire District (the "District "), in conjunction with Shorewood and the
Shorewood Economic Development Authority (the "Authority "), financed a portion of the cost to
construct a fire facility located in Shorewood (the "West Fire Side Project ") through the issuance by the
Authority of its $3,865,000 Public Safety Fire Facility Lease Revenue Bonds, Series 2002A (City of
Shorewood, Minnesota Lease Obligation) (the "Series 2002A Bonds "), pursuant to a Trust Indenture, dated
as of September 1, 2002 (the "West Side Indenture "), between the Authority and U.S. Bank National
Association, as trustee (the "Trustee ").
1.02. The District, in conjunction with Shorewood and the Authority, financed additional costs of
the West Fire Side Project through the issuance by the Authority of its $1,195,000 Public Safety Fire Facility
Lease Revenue Bonds, Series 2003A (City of Shorewood, Minnesota Lease Obligation) (the
"Series 2003A Bonds "), pursuant to the West Side Indenture, as modified by a First Supplemental Trust
Indenture, dated as of April 15, 2003 (the "Supplemental Indenture ").
1.03. The District and the South Lake Minnetonka Police Department (the "Department ") lease
certain property to the Authority pursuant to the Ground Lease (West Side), dated as of September 1, 2002, as
amended by the First Amendment to Ground Lease (West Side), dated as of April 15, 2003 (together, the
"West Side Ground Lease "), and the Authority leases such property, together with the buildings, structures or
improvements now or hereafter located thereon, to Shorewood pursuant to a Lease Purchase Agreement
(West Side Fire Facilities), dated as of September 1, 2002, as amended by a First Amendment to Fire Facility
Lease- Purchase Agreement, dated as of April 15, 2003 (together, the "West Side Fire Facility Lease "),
between the Authority and Shorewood.
1.04. With the Authority's consent, Shorewood entered into a Sublease Purchase Agreement
(West Side Fire Facilities), dated as of September 1, 2002 (the "West Side Fire Sublease "), with the District,
under which the District undertakes Shorewood's obligations under the West Side Fire Facility Lease.
1.05. Pursuant to an Assignment and Security Agreement, dated as of September 1, 2002, as
amended by a First Supplemental Assignment and Security Agreement, dated as of April 15, 2003 (together,
the "West Side Assignment "), the Authority assigned to the Trustee all of the Authority's right, title and
interest in and to the West Side Ground Lease, the West Side Fire Facility Lease, the West Side Fire
Sublease, and the Lease Payments to be made by the District thereunder (other than certain rights to
indemnification and payment of expenses) as security for the Series 2002A Bonds and the Series 2003A
Bonds.
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1.06. At the request of the District and in order to achieve debt service savings, the Authority
refunded the Series 2002A Bonds and the Series 2003A Bonds through the issuance of its $4,130,000
Public Safety Fire Facility Lease Revenue Crossover Refunding Bonds, Series 2007A (City of
Shorewood, Minnesota Lease Obligation) (the "Series 2007A Bonds "), dated January 25, 2007.
Section 2. Recitals; The West Side Police Project.
2.01. The Department, in conjunction with the City and the Authority, financed a portion of the
cost to construct a police facility located in Shorewood (the "'West Side Police Projeef') through the
issuance by the Authority of its $4,025,000 Public Safety Police Facility Lease Revenue Bonds,
Series 2002B (City of Shorewood, Minnesota Lease Obligation) (the "Series 2002B Bonds "), all pursuant
to the West Side Indenture.
2.02. The Department, in conjunction with Shorewood and the Authority, financed additional
costs of the West Side Fire Project through issuance by the Authority of its $1,220,000 Public Safety Police
Facility Lease Revenue Bonds, Series 2003E (City of Shorewood, Minnesota Lease Obligation) (the
"Series 2003B Bonds "), pursuant to the West Side Indenture as modified by the Supplemental Indenture.
2.03. The Department and the Excelsior Fire District (the "District ") lease certain property to
the Authority pursuant to the Ground Lease (West Side), dated as of September 1, 2002, as amended by a
First Amendment to Ground Lease (West Side), dated as of April 15, 2003 (the "West Side Ground Lease "),
and the Authority leases such property, together with the buildings, structures or improvements now or
hereafter located thereon, to Shorewood pursuant to a Lease Purchase Agreement (West Side Police
Facilities), dated as of September 1, 2002, between the Authority and Shorewood, as amended by a First
Amendment to Lease - Purchase Agreement, dated as of April 15, 2003 (the "West Side Police Facility
Lease ").
2.04. With the Authority's consent, Shorewood entered into a Sublease Purchase Agreement
(West Side Police Facilities) with the Department, dated as of September 1, 2002 (the "West Side Police
Sublease "), under which the Department undertakes Shorewood's obligations under the West Side Police
Facility Lease.
2.05. Pursuant to an Assignment and Security Agreement, dated as of September 1, 2002, as
amended by a First Supplemental Assignment and Security Agreement ,dated as of April 15, 2003 (the "West
Side Assignment'), the Authority assigned to the Trustee all of the Authority's right, title and interest in and
to the West Side Ground Lease, the West Side Police Facility Lease, the West Side Police Sublease, and the
Lease Payments to be made by the Department thereunder (other than certain rights to indemnification and
payment of expenses) as security for the Series 2002B Bonds and the Series 2003B Bonds.
2.06. At the request of the Department and in order to achieve debt service savings, the
Authority refunded the Series 2002B Bonds and the Series 2003B Bonds through the issuance of its
$4,285,000 Public Safety Police Facility Lease Revenue Crossover Refunding Bonds, Series 2007B (City
of Shorewood, Minnesota Lease Obligation) (the "Series 2007B Bonds "), dated January 25, 2007.
Section 3. Refunding of Series 2007 Bonds Authorized.
3.01. In order to realize further debt service savings, the District and the Department have
proposed that the Authority issue one or more series of refunding bonds in order to refund the
Series 2007A Bonds and the Series 2007B Bonds. In addition, the District has proposed that the
Authority issue refunding bonds to refund its $1,585,000 Public Safety Fire Facility Lease Revenue
Crossover Refunding Bonds, Series 2007C (City of Deephaven, Minnesota Lease Obligation) (the "Series
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2007C Bonds "), which were issued to refinance the cost of a fire facility located in the City of Deephaven
( "Deephaven "), such facility being referred to as the "East Side Fire Project." The Series 2007A Bonds,
the Series 2007B Bonds, and the Series 2007C Bonds are referred to collectively herein as the "Series 2007
Bonds."
3.02. Shorewood authorizes and requests the Authority, the District, the Department and
Deephaven and their consultants to take all steps necessary to issue current refunding bonds to refund the
Series 2007 Bonds, subject only to the following terms and conditions:
(a) The Authority, in consultation
bonds on a negotiated or competitive basis, a:
District and the Department.
with its municipal advisor, may issue refunding
they determine to be in the best interest of the
(b) The Authority is authorized to accept bids or enter into a bond purchase
agreement for each series of bonds only if the refunding bonds meet a minimum net debt service
savings of three percent (3.0 %).
3.03. Shorewood staff and consultants are authorized and directed to take any actions and
provide any information or assistance required in connection issuance of any refunding bonds described
in this resolution, including without limitation providing information required for preparation of official
statements.
3.04. The Authority is authorized and requested to bring to this Council for final approval any
documents necessary to issue the refunding bonds described in this resolution, including without
limitation any amendments to the relevant indentures, leases, and subleases.
ADOPTED BY THE CITY COiJNCIL, OF THE CITY OF SHOREWOOD this 26th
day of October, 2015.
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