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HomeMy WebLinkAboutResolution No. 2007-155CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION N0.2007-155 RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE-PURCHASE AGREEMENT AND RELATED DOCUMENTS The City Council of the City of Columbia Heights, Minnesota (the "City"), does hereby ordain as follows: Section 1. Recitals. 1.01. The City is authorized by Minnesota Statutes, Section 465.71, as amended, to acquire real and personal property under alease-purchase agreement. 1.02. The City will lease the real property identified as on Exhibit A to the Lease (the "Sites") to rile Coiuii3bia Heights Econoimic Deveiopiner~t Authority (the "Aut horny") purstiai'it to a Ground Lease, dated as of September 1, 2007 (the "Ground Lease"). Simultaneously with the execution and delivery of the Ground Lease, the City and the Authority will enter into aLease- Purchase Agreement (the "Lease") providing for the City's lease and purchase of the Sites and the Facilities (hereinafter defined) from the Authority. 1.03. Pursuant to a Mortgage and Security Agreement and Trust Indenture, dated as of September L, 2007, between the Authority and U.S. Bank National Association, as Trustee (the "Indenture"), the Authority will issue its $5,040,000 Public Facility Lease Revenue Bonds (Municipal Liquor Stores Project), Series 20078 (the "Bonds"), to finance the construction and equipping of two municipal liquor stores on the Sites (the "Facilities"). 1 _~4_ The Lease requires the City to make Lease Pavments renresentin~ brincitaal and .. , interest on the Bonds during the teen of the Lease, subject to the right of the City at the end of any fiscal year to determine not to appropriate moneys for future Lease Payments. Upon payment of aii Lease Payments, the Ground Lease and the Lease will terminate, and the Sites and Facilities will be the property of the City. 1.05. Forms of the Lease and Ground Lease have been prepared and submitted to this Council anal are on file with the City Manager. Section 2. Findings. 4n the basis of information given the City to date, it is hereby found, determined and declared that: (a} It is desirable and in the best interests of the City to enter into the Ground Lease and the Lease. (b) The terms of the Ground Lease and the Lease are found to be advantageous to the City and the form and terms thereof are hereby appraved. 316692v1 AJP CL162-37 1 (c} The Sites described in the Lease constitute essential government property, and the City presently intends to appropriate all Lease Payments under the Lease for the term of the Lease; however, the obligations of the City under the Lease are not to be payable from nor charged upon any funds of the City other than the funds appropriated annually to the payment thereof, and the Lease shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except its interest in the Lease and in the Sites under the Lease. Section 3. Authorization of Documents. The Mayor and the City Manager are authorized and directed to execute and deliver the Ground Lease, the Lease and other documents necessary or desirable in connection with the Ground Lease and the Lease, substantially in the forms on file, but with all such changes therein as shall be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof. Copies of all of the transaction documents shall be delivered, filed and recorded as provided therein. The Mayor, the City Manager and other City officers are also authorized and directed to execute such other instruments as may be required to give effect to the transactions herein contemplated. section 4. Pay~~ieii~ of LGa~c Pay,i~er~~s. T~~e ~.~~y w~~~ pay ~o t~~c ~u«~ori~y, as ass~gne to the Trustee under the Indenture, promptly when due, all of the Lease Payments and other amounts required by the Lease. To provide moneys to snake such payments, the City will include in its annual budget, for each Fiscal Year during the term of the Lease, commencing with the Fiscal Year ending on December 31, 2008, moneys sufficient to pay and for the purpose of paying all Lease Payments, a reasonable estimate of Additional Lease Payments, and other amounts payable under the Lease, and will take all other actions necessary to provide moneys for the payment of the obligations of the City under the Lease from sources of the City lawfully available for the purpose. The agreement of the City in this Section is subject to the City's right to terminate the Lease at the end of any Fiscal Year, as set forth in the Lease. Section 5. Miscellaneous. 5.01. The officers of the City are authorized and directed to prepare and furnish to the Authority, and to the attorneys approving the Lease, certified copies of aii proceedings and records of the City relating to the power and authority of the City to enter into the Ground Lease and the Lease within their knowledge or as shown by the books and records in their custody and control., and such certified copies and certificates shall be deemed representations of the City as to the facts stated therein. 5.02. Capitalized terms used herein and defined in the Initial Lease or the Lease have the meanings given in the Initial Lease or the Lease. 316692v1 AJI'CL162-37 2 The foregoing resolution was introduced by Member Diehm and seconded by Member Kelzenberg. The following voted in favor of the resolution: Peterson, DieYun, Kelzenberg and Williams; The following voted against: Nawrocki; The following were absent: none. Adopted: August 27, 2007. ATTEST: r"~ ,,,~`` /' i`'~ ~ s,,~ ,~ r _`~. - -- -- City Manager 316692v1 AJP C[_162-37 3