The URL can be used to link to this page

Home My WebLink About[05] 2013 Refinance of Opportunity Matters Council Agenda Item MEETING DATE: February 7, 2013 AGENDA ITEM: Public Hearing – Resolution 2013-007 – Give Host Issuance Under Minnesota Statutes §469.152 through 469.165 (Opportunity Matters) SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: Council authorized the Commercial Development Revenue Note, Series 2001 in the amount of $605,000 for the construction of the Independence Center in Waite Park. The note is a conduit debt of the City’s meaning it is not a direct liability of the City of St. Joseph; rather, uses the City’s General Obligation (GO) backing for a lower borrowing rate. Conduit debt is issued for projects in the private sector that are deemed a public interest. Payment of the note is received from revenues generated by Independence Center. The City discloses the debt in the footnotes of the financial statements. BACKGROUND INFORMATION: In 2001 the Independence Center, Inc. identified the need to build a facility to host their operations. The building is located in Waite Park. Between 2001 and 2006 a few facilities opened in the St. Cloud Metro Area to serve their membership. Independence Center changed their name to Opportunity Matters a couple years ago. Opportunity Matters is expanding again. Instead of issuing another separate debt, they decided to refinance all their outstanding notes into one issue at the current lower rates. The City of Sartell agreed to host the debt. The enclosed resolution states St. Joseph agrees for Sartell to act within our city by the issuance of the notes to refinance the debts associated with the facilities of Opportunities Matters. The services provided in St. Joseph will continue as they have. BUDGET/FISCAL IMPACT: Removal of Outstanding Conduit Debt $391,529 at 12-31-11 ATTACHMENTS: RCA Public Hearing – Resolution 2013-007 Notice of Public Hearing Extract of Meeting Minutes Resolution 2013-007 Giving Host Approval to Sartell – Conduit Debt REQUESTED COUNCIL ACTION: Authorize Resolution 2013-007 giving host approval to the issuance of Series 2013 Health Care Facilities Revenue Refunding Note under Minnesota Statutes §469.152 through 469.165 (Opportunity Matters project) NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF HEALTH CARE FACILITIES REVENUE REFUNDING OBLIGATIONS TO REFINANCE PROJECTS BY OPPORTUNITY MATTERS Notice is hereby given that the City Council of the City of St. Joseph, Minnesota (the "City") will meet at the City Hall, 25 College Avenue North in the City, at 7:00 p.m. on Thursday, February 7, 2013 to consider giving host approval to the issuance by the City of Sartell, Minnesota ("Issuer") of a revenue obligation, in one or more series, under Minnesota Statutes, Sections 469.152 through 469.1651 (the "Act"), in order to finance the cost of a project located in the City. Opportunity Matters, Inc., f/k/a Opportunity Manor, Inc., a Minnesota nonprofit corporation and 501(c)(3) organization (collectively, the "Borrower"), propose to refinance (a) the outstanding principal amount of the City of Sartell, Minnesota $1,400,000 Health Care Facilities Revenue Note, Series 2001 (Opportunity Manor Project), the proceeds of which were used, in part, to refinance and renovate Borrower's group housing facilities for disabled persons located at 13-12th Avenue SE in the City (the "St. Joseph Facility") and 1311-13th Avenue SE, 861-17th Avenue North, 930 Cory Lane, 926 Cory Lane, 902 Gloria Drive, and 1708- 7th Street SE in the City of St. Cloud,Minnesota("St. Cloud")(the"St. Cloud Facilities",and together with the St. Joseph Facility, the "2001 Facilities"), (b) the outstanding principal amount of a taxable obligation issued January 24, 2003, to finance the construction of a group housing facility located at 808 NE 2nd Avenue in the City of Sartell, Minnesota (the "Sartell FNMA Facility"), (c) the outstanding principal amount of a taxable obligation issued March 1, 2004, to finance the construction of a group housing facility located at 1712 27th Street SE in St. Cloud(the"St. Cloud 1712 FNMA Facility"), (d)refinance the outstanding principal amount of a taxable obligation issued April 1, 2004, to finance the construction of group housing facility located at 2708 18th Avenue SE in St. Cloud (the "St. Cloud 2708 FNMA Facility", and together with the St. Cloud 1712 FNMA Facility, the "St. Cloud FNMA Facilities"), and (e) refinance the outstanding principal amount of a taxable obligation issued October 16,2006,to finance the construction of a group housing facility located at 601 Birch Street in the City (the "St. Joseph FNMA Facility", and together with the Sartell FNMA Facility and the St. Cloud FNMA Facilities, the "FNMA Facilities"). The 2001 Facilities and the FNMA Facilities(collectively,the"Project")are owned and operated by the Borrower. The maximum estimated principal amount of the Note to be issued to finance the Project is $1,250,000. The note or other obligation, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City and such obligation will not be a charge against the general credit or taxing powers of the City but will be payable from sums to be paid by the Borrower pursuant to a revenue agreement. At the time and place fixed for the Public Hearing, the City Council will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. Written comments will be considered if submitted at the above City office on or before the date of the hearing. [Publish no later than January 18,2013] 5099722v1 Extract of Minutes of a Meeting of the City Council of the City of St. Joseph, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Joseph, Minnesota, was duly held at the City Hall in said City on Thursday, February 7, 2013, at 7:00 P.M. The following members were present: and the following were absent: Member ___________ introduced the following resolution and moved its adoption: RESOLUTION NO. __________ RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF A SERIES 2013 HEALTH CARE FACILITIES REVENUE REFUNDING NOTE UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.1655 (OPPORTUNITY MATTERS PROJECT) The motion for the adoption of the foregoing resolution was duly seconded by member ______________, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 5148339v1 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF A SERIES 2013 HEALTH CARE FACILITIES REVENUE REFUNDING NOTE UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.1655 (OPPORTUNITY MATTERS PROJECT) BE IT RESOLVED, by the City Council (the “Council”) of the City of St. Cloud, Minnesota (the “City”) as follows: Section 1.General Recitals. The purpose of Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the “Act”), is, among other things, to promote the welfare of the State of Minnesota (the “State”) by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment. Section 2.Description of the Project. (a)Opportunity Matters, Inc. (the “Borrower”), a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), has proposed that the City of Sartell, Minnesota (the “Issuer”) issue a revenue note under the Act, in one or more series, in an aggregate amount not to exceed $1,250,000 (the “Note”) to (a) refinance the outstanding principal amount of the City of Sauk Rapids, Minnesota $1,400,000 Health Care Facilities Revenue Note, Series 2001 (Opportunity Manor Project), the proceeds of which were used, in part, to refinance and renovate Borrower’s group housing facilities for disabled persons located at: (i) 13-12th Avenue SE in the City (the “St. Joseph Facility”) and 930 Cory Lane and 926 Cory Lane, St. Cloud, Minnesota (the “St. Cloud Facilities” and together with the St. Joseph Facility, the “2001 Facilities”), (b) refinance the outstanding principal amount of a taxable obligation issued January 24, 2003, to finance the construction of a group housing facility located at 808 NE 2nd Avenue, Sartell, Minnesota (the “Sartell FNMA Facility”), (c) refinance the outstanding principal amount of a taxable obligation issued March 1, 2004, to finance the construction of a group housing facility located at 1712 27th Street SE, St. Cloud, Minnesota (the “St. Cloud 1712 FNMA Facility”), (d) refinance the outstanding principal amount of a taxable obligation issued April 1, 2004, to finance the construction of group housing facility located at 2708 18th Avenue SE, St. Cloud Minnesota (the “St. Cloud 2708 FNMA Facility”, and together with the St. Cloud 1712 FNMA Facility, the “St. Cloud FNMA Facilities”), and (e) refinance the outstanding principal amount of a taxable obligation issued October 16, 2006, to finance the construction of a group housing facility located at 601 Birch Street in the City (the “St. Joseph FNMA Facility”, and together with the Sartell FNMA Facility and the St. Cloud FNMA Facilities, the “FNMA Facilities”). The 2001 Facilities and the FNMA Facilities (collectively, the “Project”) are owned and operated by the Borrower. (b)The City has been advised that the Note or other obligations, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City, the City of St. Cloud, or the Issuer, except the Project and the revenues to be derived from the Project. Such Note or obligations will not be a charge against the general credit or taxing powers of the City, the City of St. Cloud, or the Issuer, but is payable from sums to be paid by the Borrower pursuant to a revenue agreement. 2 5148339v1 Section 3.Recital of Representations Made by the Borrower. (a)The Borrower has agreed to pay any and all costs incurred by the City in connection with the issuance of the Note, whether or not such issuance is carried to completion. (b)The Borrower has represented to the City that no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. Section 4.Public Hearing. (a)As required by the Act and Section 147(f) of the Code, a Notice of Public Hearing was published in the City’s official newspaper and newspaper of general circulation, for a public hearing on the proposed issuance of the Note and the proposal to undertake and finance the Project. (b)As required by the Act and Section 147(f) of the Code, the City Council has on this same date held a public hearing on the issuance of the Note and the proposal to undertake and finance the portion of the Project located within the jurisdictional limits of the City, at which all those appearing who desired to speak were heard and written comments were accepted. Section 5.Host Approval. The City Council hereby gives the host approval required under Section 147(f) of the Code and, pursuant to Minnesota Statutes §471.656, Subd. 2(2), the City Council hereby consents to the issuance of the Note. _____________________________ Mayor ATTEST: ____________________________ City Administrator-Clerk 3 5148339v1 STATE OF MINNESOTA COUNTY OF STEARNS CITY OF ST. JOSEPH I, the undersigned, being the duly qualified and acting City Administrator-Clerk of the City of St. Cloud, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to granting host approval to the issuance of a revenue note for a project in the City. WITNESS my hand this ____ day of February, 2013. _______________________________ City Administrator-Clerk 4 5148339v1