PUBLIC HEARING - Joe Huss, Finance Director
Title
AUTHORIZING THE ISSUANCE NOT TO EXCEED $4,000,000 OF A RECREATIONAL FACILITY REVENUE REFUNDING NOTE, SERIES 2020 (FOGERTY ARENA, “THE ICE HOUSE” PROJECT) BY THE BLAINE ECONOMIC DEVELOPMENT AUTHORITY
Background
Fogerty Arena will be making some improvements to its facility in 2020 including the replacement or renovation of the arena’s compressor system. Fogerty representatives are requesting the issuance of a recreational facility note to finance the project. In addition to financing the improvement, Fogerty would also refund existing debt and they are requesting that a portion of the proceeds of the note be used for this purpose. The note will be issued through the Blaine Economic Development Authority (EDA) pursuant to Minnesota Statutes, Sections 469.152 to 469.1655, as amended. Authorization to issue the debt will be addressed under a separate EDA action to take place at an EDA meeting. The Project will be owned and operated by the Fogerty and the notes are repayable solely from sums collected by Fogerty pursuant to a revenue agreement.
The EDA would issue what is commonly known as a Conduit Debt note. The note or other obligations will not constitute a charge, lien or encumbrance upon any property of the City or the EDA, except the Facilities, and such note or obligations will not be a charge against the EDA or City’s general credit or taxing powers.
Recommendation
Upon conclusion of the public hearing, approve the following resolution
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. The City has been advised that the Note or other obligations, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City or the EDA, except the Project and the revenues to be derived from the Project pledged by the Borrower. Such Note or other obligations will not be a charge against the general credit or taxing powers of the City or the EDA but are payable from sums to be paid by the Borrower pursuant to a revenue agreement.
Section 3. As required by the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), the Council has on this same date held a public hearing on the issuance of the Note and the proposal to undertake and refinance the Project located within the jurisdictional limits of the City.
Section 4. The City hereby finds, determines and declares that the issuance of the Note by the EDA is necessary and in the best interests of the City and, as required by Section 147(f) of the Code, the Council, as the elected legislative body of the City, hereby authorizes issuance of the Note by the EDA to finance the Project.
PASSED by the City Council of the City of Blaine this 3rd day of February, 2020.