7.1 SR 08-05-2024 - Laserfiche WebLink

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150 South Fifth Street, Suite 700 Minneapolis, MN 55402 (612) 337-9300 telephone �uY• (612) 337-9310 fax f www.kermedy-graven.com Affirmative Action, Equal Opportunity Employer C H A R T E R E D GINA A. FIORINI Attorney at Law Direct Dial (612) 337-9210 Email: gfiorini(a)kennedy-graven.com July 30, 2024 Cal Portner, City Administrator City of Elk River 13065 Orono Parkway Elk River, MN 55330 Re: Resolution providing host approval for a charter school project located in the City of Elk River Dear Mr. Portner, Spectrum Building Company (the `Borrower" or "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"), is proposing to assist Spectrum High School, a Minnesota nonprofit corporation, an organization described in Section 501(c)(3) of the Code, and a public charter school (the "School'), in financing the acquisition, construction, renovation, improvement, and equipping of its existing public charter school campus (the "Original Facility") located at 17823 and 17796 Industrial Circle NW in the City of Elk River, Minnesota (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"). The Project will be owned by the Borrower and leased to and operated by the School. To finance the Project, the Borrower and the School have requested that the City of Bethel, Minnesota (the "City of Bethel") issue one or more series of taxable or tax-exempt charter school lease revenue bonds (the "Series 2024 Bonds") in the approximate principal amount not to exceed $10,000,000 and loan the proceeds thereof to the Borrower. In 2017, the City of Bethel issued its Charter School Lease Revenue Bonds (Spectrum High School Project), Series 2017A and Taxable Series 2017B (collectively, the "Series 2017 Bonds") to: (i) refund certain obligations previously issued by Anoka County, Minnesota, and thereby refinance the Original Facility and another facility owned by the Borrower and leased to and operated by the School located at 11044 Industrial Circle NW in the City, and (11) finance the acquisition of certain land located in the City for use by the School and the renovation of and addition to the Original Facility. The Series 2024 Bonds will be issued as additional bonds on a parity basis with the Series 2017 Bonds under the documents relating to the Series 2017 Bonds. In order for the City of Bethel to issue the Series 2024 Bonds, the City must hold a public hearing and grant "host approval" for the issuance of the Series 2024 Bonds under Minnesota Statutes, Sections 469.152 through 469.1655, as amended, Minnesota Statutes, Section 471.656, as amended, and Section 147(f) the Code and related Treasury Regulations. Enclosed is a resolution for consideration by the City Council on August 5, 2024, following the public hearing, which will provide host approval for the Project and the issuance of the Series 2024 Bonds by the City of Bethel. BE250-29-964449.v2 Page 108 of 159