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CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS
MONDAY, SEPTEMBER 9, 2002 TIME: 6:00 P.M.
AGENDA
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
A. Roll Call
B. Review Agenda
President Love
Garfunkel
Liz6e .:...--
Zerby ~
Turgeon_"
2. APPROVAL OF MINUTES
A. EDA Minutes of August 26, 2002 (Att.-#2A Minutes)
3. NEW BUSINESS
A. Report on Offering of Financing for Facilities
1. Report by Financial Advisor, Paul Donna
2. Report by Bond Counsel, Dan Greensweig
3. Report by Executive Director, Craig Dawson, re: Direction by EFD Board and
SLMPD Coordinating Committee
B. Resolution for Approval of Terms of Financing for Public Safety Facilities Project
(Att.-#3B Executive Director's memorandum, Resolution)
4. OTHER BUSINESS
CITY OF SHOREWOOD
ECONOMIC DEVELOPMENT AUTHORITY MEETING
MONDAY, AUGUST 26, 2002
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
TIME: 8:00 P.M. or Immediately
following Regular Council Meeting
MINUTES
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
President Love called the meeting to order at 9:35 P.M.
DAFT
A.
Roll Call
Present:
President Love; Commissioners Garfunkel, Lizee,. Turgeon, and Zerby;. and Executive
Director Dawson; Assistant Treasurer Burton; and EDA Financial Consultant Paul Donna
Absent:
Assistant Executive Director Nielsen
B.
Review Agenda
President Love reviewed the Agenda and without objection from the Board, moved forward with the
meeting.
2. APPROVAL OF MINUTES
A. EDA Meeting Minutes of August 12, 2002
Turgeon moved, Lizee seconded, Approving the EDA Meeting Minutes of August 12, 2002, as
presented. Motion passed 5/0.
3. NEW BUSINESS
A. Approval of Resolution Regarding Agreements for the Public Safety Facilities
Zerby moved, Lizee seconded, Adopting RESOLUTION NO. 02-004, "A Resolution Approving
Agreements Relating to the Financing of Certain Public Safety Facilities." Motion passed 5/0.
B. Set Meeting for September 9, 2002 to Approve Financing Issue for Public Safety
Facilities
Without objection from the Board, President Love directed Staff to set the meeting date for September 9,
2002, to Approve Financing Issue for Public Safety Facilities.
4. OTHER BUSINESS
There was.no other business presented this evening.
5. ADJOURN
Zerby moved, Lizee seconded, Adjourning the EDA Meeting of August 26, 2002, at 9:38 P.M.
Motion passed 5/0.
#<<Pr
ECONOMIC DEVELOPMENT AUTHORITY MEETING
MONDAY, AUGUST 26, 2002
Page 2 of 2
RESPECTFULLYSUBMlTTED,
Sally Keefe,
Recording Secretary
Woody Love, President
Craig W. Dawson, Executive Director
~
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, Minnesota 55331-8926
952.474.3236 FAX: 952.474.0128
MEMORANDUM
TO:
FROM:
DATE:
. SUBJECT: ...
EDA Commissioners ot>
Craig W. Dawson, Executive Director .
September 5, 2002
Resolutions Approving Terms of Financing for Public Safety Facilities
Work regarding quotes for the $9,950,000 in lease-revenue financing for public safety facilities
project will be fmalized on September 9, 2002. Results will be compiled that day by the Financial
Advisor and presented first to the Board of the Excelsior Fire District and the Coordinating
Committee of the South Lake Minnetonka Police Department. Assuming that these governing
boards recommend give direction to approve the award and terms of financing, the EDA Board
would then need to adopt a Resolution to formalize this action.
Three resolutions will be prepared - one for City of DeephavenlEFD East Station, one for City of
Shorewood/EFD West Station, and one for City of Shorewood/SLMPD Station. A draft of the model
for these resolutions is.attached. More information regarding the blanks on the draft resolution will
be provided at the EFD/SLMPD and EDA meetings.
Additional financing for the project will be required. It will be scheduled for early in 2003.
RECOMMENDATION:
It is recommended that the EDA Board approve the final draft of the proposed Resolution
Approving the Terms of Financing for the South Lake Minnetonka Public Safety Facilities
Project.
ft-3B
RESOLUTION NO.
A RESOLUTION AWARDING THE SALE OF PUBLIC SAFETY FIREIPOLICE FACILITY
LEASE REVENUE BONDS, SERIES 2002_
(CITY OF , MINNESOTA LEASE OBLIGATION)
BE IT RESOLVED By the Shorewood Economic Development Authority (the
"Authority"), as follows:
Section 1.
Recitals.
1.01. The City of ---,-' Minnesota (the "City") is authorized by Minnesota Statutes,
Section 465.71, as amended, to.acquire.real and personal property. under lease-purchase agreements.
1.02. The Authority has agreed with the City that pursuant to a SubgroundlGround
Lease dated as of September 1, 2002 (the "SubgroundlGround Lease"), the Authority will acquire
certain property from the City, and the Authority will lease such property, together with the
buildings, structures or improvements now or hereafter located thereon, to the City pursuant to a
Lease-Purchase Agreement dated as of September 1,2002 (the "Lease'').
1.03. Pursuant to a Trust Indenture dated as of September 1, 2002 (the "Indenture"),
between the Authority and U.S. Bank National Association, as trustee (the "Trustee"), the Authority
will issue its Public Safety FirelPolice Facility Lease Revenue Bonds, Series 2002 (City of
, Minnesota Lease Obligation) (the "Bonds") in an aggregate principal amount of $_.
1.04. Under the Indenture, proceeds of the Bonds will be used to pay costs of acquisition,
construction and equipping of the Facilities described in the Lease.
1.05. Pursuant to an Assignment and Security Agreement dated as of September 1,2002
(the "Assignment''), the Authority will assign to the Trustee all of the Authority's right, title and
interest in and to the SubgroundlGround Lease, the Lease and the Lease Payments to be made by
the City thereunder (other than certain rights to indemnification and payment of expenses) as
security for the Bonds.
1.06. Forms of the SubgroundfSubgroundfGround Lease, the Lease, the Indenture,
the Assignment, the Official Statement for the Bonds and a Continuing Disclosure Agreement of
the City dated as of September 1, 2002, have been prepared and submitted to the Authority and
are on file with the Authority.
Section 2.
Sale of Bonds.
DJG-194423v2
CH285-17
2.01. The proposal of (the "Purchaser") to
purchase the Bonds is hereby found and determined to be a reasonable offer and is hereby accepted~
the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of
delivery~ for Bonds bearing interest as follows:
Year of
Maturity
Interest
Rate
Year of
Maturity
Interest
Rate
True interest cost:
%
2.02. The Treasurer is directed to retain the good faith check of the Purchaser~ pending
completion of the sale of the Bonds~ and to deliver the good faith check to the Trustee upon the
issuance of the Bonds. The Authority shall return the good faith checks of the unsuccessful
proposers forthwith.
2.03. The Authority will forthwith issue and sell the Bonds in the total principal amount of
$ ~ originally dated September l~ 2002~ in the denomination of $5~000 each or any integral
multiple thereof~ numbered No. R-l ~ upward~ bearing interest as above set fo~ and which mature
serially on February l~ in the years and amounts as follows (subject to redemption and prior
payment as set forth in the Indenture):
Year
Amount
Year
Amount
2.04. Execution. Authentication and Delivery. The Bonds~ substantially in the form
provided in the Indenture~ will be prepared under the direction of the Authority staff and executed
on behalf of the Authority by the signatures of the President and one other officer of the Authority~
provided that all signatures may be printed~ engraved or lithographed facsimiles of the originals.
Notwithstanding such execution~ a Bond will not be valid or obligatory for any purpose or entitled
to any security or benefit under this Resolution or the Indenture unless and until a certificate of
authentication on the Bond has been duly executed by the manual signature of an authorized
DJG-194423v2
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or agents to take, all affinnative action within its power that may be necessary to ensure that such
interest will not become subject to taxation under the Code and applicable Treasury Regulations, as
presently existing or as hereafter amended and made applicable to the Bonds.
6.02. In order to qualify the Bonds as "qualified tax-exempt obligations" within the
meaning of Section 265(b)(3) of the Code, the Authority makes the following factual statements and
representations:
(a) the Bonds are not "private activity bonds" as defined in Section 141 of the
Code;
(b) the Authority hereby designates the Bonds as "qualified tax-exempt
obligations"for purposes of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than any
private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the
Authority (and all subordinate entities of the City) during calendar year 1998 will not exceed
$10,000,000; and
(d) not more than $10,000,000 of obligations issued by the Authority during
calendar year 2002 have been designated for purposes of Section 265(b )(3) of the Code.
6.03. The Authority will use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designations made by this section.
Dated: September 9, 2002
President
ATTEST:
Executive Director
DJG-194423v2
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