ADMINISTRATION - Joe Huss, Finance Director
Title
EXTEND THE LEASE AGREEMENT WITH FOGERTY ARENA FOR AQUATORE PARK AND AUTHORIZE THE EXECUTION OF DOCUMENTS RELATING TO THE FOGERTY ARENA “THE ICE HOUSE” REFUNDING PROJECT
Background
In 2008, the City approved an Amended Real Property Lease with Fogerty Arena, which, among other issues, extended the term of the lease to January 1, 2042. In conjunction with a refinancing of current debt, Fogerty and Village Bank, the underwriter of the refinancing debt issue, are requesting an extension of the lease term to January 1, 2055. City staff has conferred with legal counsel and it has been determined that the extension request is reasonable and necessary to the debt issuance.
Recommendation
Council adopt the following resolution approving the attached Amended Lease Agreement, and by such action approve the Amended Lease Agreement and extend the term of the lease to January 1, 2055.
Body
BE IT RESOLVED By the City Council (the “Council”) of the City of Blaine, Anoka and Ramsey Counties, Minnesota (the “City”) as follows:
Section 1. The Blaine Economic Development Authority (the “EDA”) has received from Fogerty Arena, “The Ice House”, a Minnesota nonprofit corporation (the “Borrower”), a proposal that the EDA issue its Recreational Facility Revenue Refunding Note (Fogerty Arena “The Ice House” Project), Series 2020 in a principal amount not to exceed $4,000,000 (the “Note”), pursuant to Minnesota Statutes, Chapter 469.152 to 469.1655 (the “Act”) to (i) assist in financing improvements to the Borrower’s facilities located at 9250 Lincoln Street NE in the City (the “Facilities”), including without limitation, replacement or renovation of the compressor system for the ice arena; and (ii) refund the outstanding balance of the City’s Recreational Facility Revenue Note, Series 2012 (Fogerty Arena, “The Ice House” Project); (iii) pay a portion of the interest on the note, if necessary; and (iv) pay a portion of the costs of issuing the note, if necessary (collectively the “Project”). The Facilities will be owned and operated by the Borrower on land owned by and leased from the City.
Section 2. By a resolution adopted on February 3, 2020, the City Council gave preliminary approval to the Project and the issuance of the Note.
Section 3. The Borrower proposes to secure payment of amounts due under the Loan Agreement and Note by granting to the Lender a mortgage and security interest in the property described therein pursuant to a Leasehold Mortgage, Security Agreement and Fixture Financing Statement (the “Mortgage”) to be executed by the Borrower in favor of the Lender, subject to receiving the consent of the City as owner of the land on which the Project is located. A draft of the Mortgage has been submitted to the City Council.
Section 4. Pursuant to a Third Amendment to Real Property Lease Agreement (the “Lease Amendment”) to be executed by the Borrower and the City (the “County”), the City will extend the term of the lease previously entered into with the Borrower and the County. A draft of the Lease Amendment has been submitted to the City Council.
Section 5. Authorization to Execute Agreements. The forms of the proposed Mortgage and the Lease Amendment are hereby approved in substantially the forms heretofore presented to the City Council, together with such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by Bond Counsel prior to the execution of the documents, and the Mayor and City Manager of the City are authorized to execute the Lease Amendment and a consent to the Mortgage in the name of and on behalf of the City and such other documents as Bond Counsel consider appropriate in connection with the issuance of the Note. In the event of the absence or disability of the Mayor or the City Manager such officers of the City as, in the opinion of the City Attorney, may act on their behalf, shall without further act or authorization of the City Council do all things and execute all instruments and documents required to be done or executed by such absent or disabled officers. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof.
PASSED by the City Council of the City of Blaine this 16th day of March, 2020.