06-100
CITY OF SHOREWOOD
RESOLUTION NO. 06-100
RESOLUTION GIVING PRELIMINARY APPROVAL TO
ISSUANCE OF REFUNDING BONDS RELATED TO
CERTAIN PUBLIC SAFETY FACILITIES
BE IT RESOLVED By the City Council ("Council") of the City of Shorewood,
Minnesota ("Shorewood") as follows:
Section 1.
Recitals: The West Side Fire Proiect.
1.01. The Excelsior Fire District ("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 the City of Shorewood (the "West
Fire Side Project"), through 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 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 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 Fire Facilities) between the Authority and Shorewood dated as of September 1, 2002,
as amended by a First Amendment to Fire Facility Lease-Purchase Agreement dated as of
April 15, 2003 (the "West Side Fire Facility Lease").
1.04. With the Authority's consent, Shorewood entered into a Sublease Purchase
Agreement (West Side Fire Facilities) with the District dated as of September 1,2002 (the
"West Side Fire Sublease"), 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 (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.
1.06. The outstanding principal amount of the Series 2002A Bonds is subject to
optional redemption on February 1, 2009 and any date thereafter; and the outstanding
principal amount of the Series 2003A Bonds is subject to optional redemption on
February 1,2010 and any date thereafter.
Section 2.
Recitals: The West Side Police Proiect.
2.01. The Department, in conjunction with Shorewood and the Authority,
financed a portion of the cost to construct a police facility located in the City of
Shorewood (the "West Side Police Project"), through 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 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").
2.02. The Department, in conjunction with Shorewood and the Authority, financed
additional costs of the West Side Police Project through issuance by the Authority of its
$1,220,000 Public Safety Police Facility Lease Revenue Bonds, Series 2003B (City of
Shorewood, Minnesota Lease Obligation) (the "Series 2003B Bonds"), pursuant to the
West Side Indenture as modified by a First Supplemental Trust Indenture dated as of April
15, 2003 (the "Supplemental Indenture").
2.03. The Department and the Excelsior Fire District ("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) between
the Authority and Shorewood dated as of September 1, 2002, 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
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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. The outstanding principal amount of the Series 2002B Bonds is subject to
optional redemption on February 1, 2009 and any date thereafter; and the outstanding
principal amount of the Series 2003B Bonds is subject to optional redemption on
February 1,2010 and any date thereafter.
Section 3.
Refunding Authorized.
3.01. In order to realize debt service savings, the District and the Department
have proposed that the Authority issue one or more series of advance refunding bonds in
order to refund all or a portion of the Series 2002A Bonds, Series 2002B Bonds, Series
2003A Bonds and Series 2003B Bonds. In addition, the District has proposed that the
Authority issue advance refunding bonds to refund its $2,060,000 Public Safety Fire
Facility Lease Revenue Bonds, Series 2002C (City of Shorewood, Minnesota Lease
Obligation) (the "Series 2002C Bonds"), which were issued to finance 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 2002ABonds, Series 2002B Bonds and Series
2002C Bonds are referred to together as the "Series 2002 Bonds"); and the Series 2003A
Bonds and Series 2003B Bonds are referred to together as the "Series 2003 Bonds").
3.02. The City authorizes and requests the Authority, the District, the
Department and Deephaven and their consultants to take all steps necessary to issue
advance refunding bonds to refund the Series 2002 Bonds and the Series 2003 Bonds,
subject only to the following terms and conditions:
(a) The Authority and Shorewood may determine in their joint
discretion whether to refund all the Series 2002 Bonds and Series 2003 Bonds
("Scenario 2"), or only the Series 2002 Bonds ("Scenario 1 "), based on
Shorewood's determination regarding the total amount of bonds expected to be
issued in calendar year 2007 and Shorewood's desire to issue bonds on a "bank
qualified basis" under Section 265(b)(3) of the Internal Revenue Code of 1986, as
amended.
(b) The Authority, in consultation with its financial advisor, may issue
refunding bonds on a negotiated or competitive basis, as they determine to be in
the best interest of the District and the Department.
(c) 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 the
following parameters:
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Minimum Net Debt Service Savings*
Scenario 1:
Fire Facilities (East and West)
Combined savings for
Series 2002A and 2002C
$299,557
Police Facilities
Savings for Series 2002B
$213,316
Scenario 2:
Fire Facilities (East and West)
Combined savings for
Series 2002A, 2003A
and 2002C
$328,573
Police Facilities
Combined savings for
Series 2002B
and Series 2003B
$242,672
*Debt service savings are net of any savings related to defeasance of a portion of
Series 2002C with unspent proceeds.
Approved by the City Council of the City of Shorewood, Minnesota this 27th day
of November, 2006.
CITu;eL:
Woody Love, Mayor
ATTEST:
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