HomeMy WebLinkAbout6.o. Reimbursement Intent Resolution for Flint HillsAGENDA ITEM: Reimbursement Intent Resolution for
Flint Hills
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director
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ATTACHMENTS: Resolution
APPROVED BY: a
RECOMMENDED ACTION: Motion to adopt a Resolution Declaring An Official
Reimbursement Intent With Respect To The Proposed Issuance Of Revenue Bonds In An
Amount Not To Exceed $50,000,000, At The Request Of Flint Hills Resources, LP.
4 ROSEMOUNT
CITY COUNCIL
City Council Meeting Date: March 21, 2006
EXECUTIVE SUMMARY
ISSUE
The issue before the City Council is the request by Flint Hills to pass a resolution allowing them to be
reimbursed for payments made for their proposed project before the actual financing with private activity
tax- exempt bonds would occur.
BACKGROUND
Council is asked to consider a resolution allowing Flint Hills to be reimbursed from bonds for payments
made within the past 60 days as well as future payments made poor to the sale of bonds for their proposed
project. This is a common practice that the City follows as well There are many preliminary costs that
will be incurred by Flint Hills and by passing the resolution at this time they will be allowed to reimburse
themselves from the future bond proceeds for the expenses incurred after the resolution is approved and
those paid up to 60 days prior to passage and before the funds from bonds are received Flint Hills has
completed the City's application and submitted a check for the apphcation fee. The apphcation has been
reviewed by staff, as well as by a representative of Springsted, out financial consultants, and a
representative of Biggs Morgan, our bond counsel. The information in the application appears to
comply with the City's Tax Exempt Financing Policy and Flint Hills is ready to begin incurring significant
costs that they wish to be reimbursed through bonds.
At a future tune the Council may be asked to consider setting a public heating to consider issuing tax
exempt bonds for the Flint Hills project. At this time, only approving the reimbursement resolution has
been requested.
Approving this resolunon does not obligate the City to approve the tax exempt financing for this project.
SUMMARY
Staff is recommending that the City Council approve the attached reimbursement resolution.
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2006
RESOLUTION DECLARING AN OFFICIAL REIMBURSEMENT INTENT WITH
RESPECT TO THE PROPOSED ISSUANCE OF REVENUE BONDS IN
AN AMOUNT NOT TO EXCEED $50,000,000,
AT THE REQUEST OF FLINT HILLS RESOURCES, LP
WHEREAS, the City of Rosemount (the "Issuer a municipal corporation organized and existing
under the Constitution and laws of the State of Minnesota, is authorized and empowered by
Minnesota Statutes, Sections 469.152 to 469.165, as amended (the "Act to undertake projects
described in the Act, to lease a project to a contracting party, and to issue revenue bonds to defray
all or a portion of the cost of acquiring, constructing, improving and equipping the project, as
further provided in the Act; and
WHEREAS, a proposal has been made to the Issuer by Fhnt Hills Resources, LP, a Delaware
limited partnership (referred to herein as the "Borrower'), requesting that the Issuer issue its
revenue bonds to provide financing for a project, consisting primarily of a sohd waste disposal
project, pursuant to the Act (referred to as the "Project and
WHEREAS, the Project will be undertaken at the existing facility of the Borrower located within
the municipal boundaries of the Issuer; and
WHEREAS, the revenue bonds to be issued for the Project (the "Bonds are expected to be in a
principal amount not to exceed $50,000,000, which Bonds are to be repaid solely and only through
payments to be made by the Borrower pursuant to a lease agreement to be entered into between the
Issuer and the Borrower, and
WHEREAS, the Bonds shall be limited obligations of the Issuer, and shall not constitute nor give
rise to a pecumary liability of the Issuer or a charge against its general credit or taxing powers, and
the principal of, interest and premium, if any, on the Bonds shall be payable solely out of the
revenues derived from the loan agreement.
BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota as follows:
1 To the extent that the Borrower, in anticipation of the issuance of the Bonds, expends funds
which constitute costs of the Project, as defined in the Act, and are chargeable to capital account, for
federal income tax purposes, the Borrower shall be entitled to be reimbursed therefor out of the
proceeds of the Bonds, when, as and if issued, and this resolution shall constitute an official
declaration of reimbursement intent with respect thereto, all as further set forth below
(a) It is desirable in the estnnanon of the Borrower that, in connection with the Project, capital
expenditures be incurred prior to the issuance of the Bonds and the Borrower reasonably expects to
reimburse such capital expenditures from proceeds of the Bonds
(b) The Bonds are expected to be issued in an aggregate principal amount not to exceed
$50,000,000.
(c) (d) In connection with the Project, authority is hereby specifically conferred on any
officer or employee of the Issuer, including the City Adnurustrator and the Finance Director, to
make such further declarations of official reimbursement intent as may he necessary or desirable and
as may be consistent with then existing budgetary and financial circumstances of the Borrower.
2. This adoption of this resolution shall not be deemed to establish a legal obligation on the
part of the Issuer or the City Council to issue revenue bonds for the Project nor does it constitute an
approval or waiver by the City- of Rosemount of any land use, planning, permitting or other
municipal approvals required for the Project
3. Officers of the Issuer are hereby authorized to take such further action as may be necessary
to carry out the intent and purpose of this Resolution.
4. Any prior resolutions or orders adopted by the City Council, or parts thereof, m conflict
herewith are, to the extent of such conflict, hereby repealed, and this Resolution shall be in full force
and effect immediately upon its adoption
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ADOPTED 2006.
ATTEST:
James D Verbrugge, Deputy City Clerk
Morton by: Seconded by:
Voted m favor:
Voted Against.
Members Absent:
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Wi1Lam H Droste, Mayor
STATE OF MINNESOTA
COUNTY OF ROSEMOUNT
WITNESS My hand officially as said Deputy City Clerk this day of 2006.
)ss.
I, the undersigned, being the duly qualified and acting Deputy City Clerk of the City of Rosemount
(the "Issuer do hereby certify that attached hereto is a compared, true and correct copy of a
resolution duly adopted by the City Council of the Issuer at a regular meeung thereof duly called and
held on March 21, 2006, as the same relates to the proposed issuance of revenue bonds of the Issuer
pursuant to Minnesota Statutes, Sections 469.152 to 469.165, as amended, at the request of Fhnt
Hills Resources, LP, a Delaware hmited partnership, that said meeting was duly and pubhcly held in
accordance with all apphcable requirements of law, and that the information set forth in the attached
Extract of Minutes with respect thereto is true, complete and correct.
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James D. Verbrugge, Deputy City Clerk
City of Rosemount
Dakota County, Mmnesota