00-0025R
RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF REVENUE NOTES BY THE CITY OF BRAINERD UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165, AS AMENDED, TO FINANCE PROPERTY FOR THE BENEFIT OF LUTHERAN SOCIAL SERVICE OF MINNESOTA.
BY COUNCILOR HOGG:

WHEREAS, under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152-469.165, as amended (the act), each municipality and redevelopment agency of the state of Minnesota (as defined in the act), including the vity of Brainerd, Minnesota (the city of Brainerd), is authorized to issue revenue obligations to finance capital equipment and improvements to land and buildings for the benefit of a revenue-producing enterprise to be owned by a contracting party (as defined in the act); and

WHEREAS, under Section 469.155, subdivision 9, of the act, the city of Brainerd is authorized to enter into and perform contracts and agreements with other municipalities as the governing bodies of the city and as the other municipalities may deem proper and feasible for or concerning the financing of a project under the act, including an agreement whereby one municipality issues its revenue obligations in behalf of one or more other municipalities; and

WHEREAS, the city of Brainerd, has proposed to issue one or more revenue notes (the notes) and loan the proceeds derived from the sale of the notes to Lutheran Social Service of Minnesota, a nonprofit organization (the borrower), to finance the acquisition of computer equipment and motor vehicles, and the acquisition and construction of improvements to existing buildings (the project), to be located at the existing facilities of the borrower in numerous municipalities in the state of Minnesota; and

WHEREAS, a portion of the project will be located in the city of Brainerd and at the existing facilities of the Borrower in the city of Duluth, Minnesota (the city);

NOW, THEREFORE, BE IT RESOLVED THAT:

(a) The portion of the project to be located in the city (as described in the notice of public hearing published prior to the date of consideration of this resolution) is hereby approved by the city and the issuance of the notes by the city of Brainerd for such purpose (in the amount described in the notice of public hearing) and in an aggregate principal not to exceed $1,800,000 is hereby approved;

(b) No obligations will be issued by the city to finance any portion of the project and the notes to be issued by the city of Brainerd to finance the project shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the city; and the notes, when, as, and if issued, shall recite in substance that the notes, including the interest thereon, are payable solely from the revenues received from the project and the property pledged to the payment thereof; and the notes shall not constitute an obligation of the city and shall not be secured by any taxing power of the city;

(c) The borrower shall pay any and all costs incurred by the city in connection with the portion of the project located in the city, whether or not the project is approved, the notes are issued, or the project is carried to completion.



STATEMENT OF PURPOSE: This resolution approves the issuance of tax exempt revenue notes by the City of Brainerd to finance the acquisition of computer equipment and motor vehicles, and the acquisition and construction of improvements to existing buildings by Lutheran Social Services of Minnesota at a number of locations in the state of Minnesota. Approval of the issuance of these notes by the Duluth City Council is required because a portion of the proceeds will be spent at the Bethany Crisis Shelter located in the city of Duluth at 9239 Idaho Street. This facility will be getting a new van for transportation of residents.