HomeMy WebLinkAboutEDA RES 2017-15COLUMBIA HEIGHTS E'CONOMIC DEVE LOP MENT AUTHORITY
RESOLUTION NO. 201.7-15
A R+soLuTION CONSENTING TO THE REDEMPTION AND PREPAYMENT
OF 'THE AUTHORITY'S OUTSTANDING PUBLIC FACILITY LEASE
R. ,VENUE BONDS, SERIES 2007B, (MUNICIPAL LIQUOR STORES PROJECT)
BE IT RESOLVED By the Board of Commissioners of the Columbia Heights Economic
Development Authority (the -Authority"), as follows:
Section I . Recitals,
1.01, Pursuant to a Mortgage and Security Agreement and Trust Indenture, dated as of
September 1, 2007 (the "Indenture"), between the Authority and U.S. Bank National Association, as
trustee (the "Trustee"), the Authority issued its Public Facility Lease Revenue: Bonds, Series 2007B
(Municipal Liquor Stores Project) (the "Authority Bonds"), dated September 19, 2007„ in the original
aggregate principal annount of $5,040,000. The proceeds of the Authority Bonds were used to provide
financing for the construction of two new municipal liquor stores (the "Improvements") in the City of
Columbia Heights, Minnesota (the "City"). 'fhe Authority acquired a leasehold interest in the real
property on which the Improvements were constructed (the "Site") pursuant to a Ground Lease, dated as
of September 1, 2007 (the "Ground Lease"), between the City, as lessor, and the Authority, as lessee.
The Authority Bonds are secured by lease payments (the "Lease Payments") from the City to the
Authority pursuant to a Lease - Purchase Agreement, dated as of September 1, 2007 (the "Lease"),
between the Authority, as lessor, and the City, as lessee.
1.02. Section 8.1 of the Lease permits the City to purchase the Site and the Improvements at
any time, in accordance with Article V of the Lease. Pursuant to Section 5.5 of the Lease, the City may
purchase all or a portion of the Site and the Improvements by depositing funds to the Trustee for deposit
in the Bond Fund established under the Indenture and applied to the payment of principal of and interest
on the Authority Bonds.
1-01 Pursuant to a resolution to be considered by the City Council of the City on the date
hereof (the "City Resolution"), the City has determined to exercise its option to prepay the Authority
Bonds in order to acquire the Site and the Improvements. Section 8.2 of the Lease requires that the City
give notice to the Authority of its intention to exercise its option to prepay the Lease Payments and
acquire the Site and the Improvements at least forty-five (45) days in advance of the date of prepayment
and purchase. The City Finance Director gave such notice at the Authority's regular meeting On
February 6, 2017. In order to prepay the Lease Payments and acquire the Site and the Improvements
from the Authority, the City will issue its General Obligation Refunding Bonds, Series 2017A (the "City
Bonds"), in the aggregate principal amount of approximately $3,375,000, Proceeds of the City Bonds
will be used to redeem and prepay the outstanding Authority Bonds in an amount sufficient to prepay the
Lease Payments.
1.04. The Authority Bonds are currently outstanding in the aggregate principal amount Of
$3,700,➢00 and are callable on February 1, 2017, at a price of par plus accrued interest. Pursuant to the
City Resolution, the City will request that the Authority consent to and call the Authority Bonds for
redemption on August 1, 2017 (the "Redemption Date"), in accordance with Section 8,2 of the Lease,
500853v I Mr, ICL,162-53
Section 2. RgdgU rgri of I An i
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2.01. It is determined that it is in the best interests of the sound financial management of the
Authority and the City that the principal amount of the Authority Bonds coming due on February 1, 2018
and thereafter, comprising all of the Authority Bond subject to redemption, be prepaid and redeemed oil
the Redemption Date (or on file first date thereafter for which the registrar for the Authority Bonds (the
"Registrar") call provide proper notice to tile holders oftlie Authority Bonds), and the Authority Bonds
are hereby called for redemption on that date in the aggregate principal amount of $3,700,000, subject to
adoption by the City of the City Resolution,
102. The Registrar is authorized and directed to mail notice of call for redemption of' tile
Authority Bonds in the form attached hereto as EXHIBIT A to the registered owner of the Authority
Bonds to be redeemed at the address shown on the registration books kept by the Registrar,
103. Officials of the Authority are authorized and directed to take all actions and execute any
documents necessary to carry out redemption of the Authority Bonds, the satisfaction of related
documents, and the conveyance of fee title to the Site and the Improvements to the City as of the
Redemption Date,
Adopted by the Board of Commissioners of tile Columbia Heights Economic Development
Authority this 12"' day of June, 2017.
0
By _ I ak-�--
Its Pr (91 ntl
Attest:
By
Its Executive D rector
500853d MNICLI62-53 2
NOTICE OF CAIA, FOR REDEMPTION
S5,040,000
COLUMBIA HEIGHTS ECONO�MIC DEVELOPMENTAUTHORITY
PUBLIC FACILITY LEASE REVENUE BONDS
SERIES 20078
(MUNICIPAL LIQUOR STORES PROJECT)
NOTICE IS HEREBY (jIVEN that, by order of the Board of Commissioners of the Colurnbia
Heights Economic Development Authority (the "Authority"), there have been called for redemption and
prepayment on
August 1, 2.017
all outstanding bonds ofthe Authority designated as Public Facility Lease Revenue Bonds, Series 2007B
(Municipal Liquor Stores Project), dated September 19, 2007, having stated maturity dates of February I
in the years 2020 through 2030, both inclusive, totaling $3,700,000 in. principal amount, and with the
following CUSIP numbers:
Year of M , aturity
Amount
CU SIP
2020
$ 650,000
19768P ALO
2023
755,000
19768P API
2027
1,210,000
197681-1 AT3
2030
4085,000
1,976811 AW6
The bonds are being called at a price of par plus accrued interest to August 1, 2017, on which date all
interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are
requested to present their bonds for payment at the main office of U.S. Batik National Association, in the
City of Saint Paul, Minnesota, on or before August 1, 2017:
U.S. Bank National Association
Corporate Trust Services
I I I I~ it [more Avenue East
St. Paul, MN 55107
Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act
of 2003, the paying agent is required to withhold a specified percentage of the principal amount of the
redemption price payable to the holder of any bonds subject to redemption and prepayment on the
redemption date, unless the paying agent is provided with the Social Security Number or Federal
Employer Identification Number of the holder, properly certified. Submission of a fully executed
Request for Taxpayer Identification Number and Certification, Forin W-9 (Rev. December 2011), will
satisfy the requirements of this paragraph.
Dated: 20
A-1
500853vl MNIC1.162-53
BY ORDER OF THE BOARD OFCOMMISSIONFRS
O: F THE COLUMBIA HEIGHTS I-EVONOMIC
DEVI-"I,OPMEN'I'AU'f'I-IORI'I'Y
By . /s/ Walter R. Felist
. . ......... . .......... ....... ....
Executive Direclor
Columbia Heights Economic Development
Authority
A-2
5008530 MNI CLI 62-53