PUBLIC HEARING - Joe Huss, Finance Director
Title
AUTHORIZING THE ISSUANCE OF A $4,800,000 RECREATIONAL FACILITY REVENUE NOTE, SERIES 2019 (NSC DOME PROJECT) BY THE BLAINE ECONOMIC DEVELOPMENT AUTHORITY
Background
The National Sports Center (NSC) has received zoning approval and a conditional use permit to construct an approximately 117,000 square-foot sports dome on the NSC campus. Earlier in the evening, the Blaine Economic Development Authority (EDA) approved the issuance of up to $4.8 million in a Revenue Note to fund the facility. The note will be issued pursuant to Minnesota Statutes, Sections 469.152 to 469.1655, as amended. The EDA approval action is contingent upon the City conducting a public hearing and authorizing the EDA to issue the debt. The Project will be owned and operated by the NSC and the notes are repayable solely from sums collected by the NSC 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 except the Project, and such note or obligations will not be a charge against the 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 The National Sports Center Foundation, a Minnesota nonprofit corporation (the “Borrower”), a proposal that the EDA issue its Recreational Facility Revenue Note (NSC Dome Project), Series 2019 in a principal amount not to exceed $4,800,000 (the “Note”), pursuant to Minnesota Statutes, Chapter 469.152 to 469.1655 (the “Act”) to assist in financing the acquisition, construction and equipping of an approximately 117,000 square foot sports dome and related facilities and improvements to be located at 1700 105th Avenue NE in the City (the “Project”) be owned and operated by the Borrower.
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. 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 held a public hearing on the issuance of the Note and the proposal to undertake 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 21st day of October, 2019.