ITEM: 9.1 PUBLIC HEARING - Joe Huss, Finance
Title
AUTHORIZING THE ISSUANCE OF A REVENUE NOTE OR OTHER OBLIGATION NOT TO EXCEED $5,000,000 ON BEHALF OF FOGERTY ARENA TO FINANCE A CURLING FACILITY
Background
Representatives from Fogerty Arena have presented a proposal to construct and equip a 28,000 square-foot indoor curling facility adjacent to the existing Fogerty Arena. The proposal includes a request for the City to provide assistance with the issuance of a revenue note or other obligation in an amount not to exceed $5,000,000 pursuant to Minnesota Statutes, Sections 469.152 to 469.1651, as amended. The Project will be owned and operated by Fogerty Arena. In addition to the curling facility, proceeds will be used to finance improvements to the existing indoor ice facility, including the installation of a new chilling system and the refinancing of certain outstanding debt including the Recreational Facility Revenue Refunding Note, Series 2009, issued by the Blaine EDA.
The City would issue what are commonly known as Conduit Debt bonds. The bonds would be issued pursuant to IRS regulations and State of Minnesota statutes, chapter 469. The note or other obligations if and when issued 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, but will be payable by Fogerty pursuant to a revenue agreement.
Recommendation
By motion, approve attached resolution
Body
See Attached Resolution