7.1 SR 08-05-2024 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA RESOLUTION NO. 24-47 RESOLUTION CONSENTING TO AND APPROVING THE ISSUANCE BY THE CITY OF BETHEL OF ITS CHARTER SCHOOL LEASE REVENUE OBLIGATIONS AND TAKING OTHER ACTIONS WITH RESPECT THERETO WHEREAS, the City of Elk River, Minnesota (the "City") is a statutory city and political subdivision duly organized and existing under the laws of the State of Minnesota; and WHEREAS, pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the "Act"), the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance revenue producing enterprises, whether or not operated for profit; and WHEREAS, Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the governing body of the city in which the property is located consents by resolution to the issuance of such obligations; and WHEREAS, Spectrum Building Company (the "Company"), a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), has requested that the City of Bethel, Minnesota (the "City of Bethel") issue its revenue bonds, in one or more series, as taxable or tax-exempt obligations (the "Bonds"), in a principal amount not to exceed $10,000,000, and loan the proceeds thereof to the Company to: (i) finance the acquisition, construction, renovation, improvement, and equipping of its existing public charter school campus located at 17823 and 17796 Industrial Circle NW in the City, including but not limited to an approximately 45,000 square foot addition to its existing facility and renovation of and improvements to the existing facility for use as a public charter school for students in grades 6-12 (the "Project"); (ii) finance capitalized interest during the construction of the Project, if necessary; (iii) fund any required reserves; and (iv) pay costs of issuance of the Bonds; and WHEREAS, the Project will be owned by the Company and leased to and operated by Spectrum High School, a Minnesota nonprofit corporation and public charter school (the "School"), pursuant to a lease agreement; and WHEREAS, Section 147(f) of the Code and regulations promulgated thereunder require that prior to the issuance of the Bonds, the City Council of the City (the "City Council") consent to the issuance of the Bonds by the City of Bethel after conducting a public hearing thereon preceded by publication of a notice of public hearing (in the form required by Section 147(f) of the Code and applicable regulations) in a newspaper of general circulation within the City at least seven (7) days prior to the public hearing date; and WHEREAS, a notice of public hearing was published at least seven (7) days before the regularly scheduled meeting of the City Council on the date hereof in the Star News, the official newspaper of and a newspaper of general circulation in the City, with respect to the required public hearing under Section 147(f) of the Code; and BE250-29-964435.v2 Page 106 of 159