BY COUNCILOR STEWART:
BE IT RESOLVED, by the city council of the city of Duluth, Minnesota (the city), as follows:
(a) The Duluth economic development authority (DEDA) has issued its $2,720,000 lease revenue bonds, Series 1995A (the Series 1995A bonds), of which $1,640,000 in principal amount is outstanding on the date hereof. The proceeds of the Series 1995A bonds were used to develop community center facilities, including meeting rooms, community police offices, storage space and athletic facilities, consisting of a gymnasium, swimming pool and changing facilities and related improvements for parking and park/open space within the city’s portion of the former Washington Junior High School (the project);
(b) It is hereby found, determined, and declared to be necessary, and in the best interests of the city and its residents, for debt service savings, and the city hereby requests that DEDA issue its approximately $1,345,000 lease revenue refunding bonds, Series 2007A (the bonds), to provide funds to prepay and redeem the outstanding Series 1995A bonds, to establish a reserve fund and to pay the costs of issuance of the bonds. The principal of and interest on the bonds shall be payable from lease rentals from the city’s lease of the project sufficient to provide for the prompt and full payment of the bonds and interest accruing thereon’
(c) The city hereby requests DEDA to utilize and hereby approves the terms and conditions of the bonds and the sale thereof as set forth in the official terms of offering on file with the city clerk as Public Document No. ______. Each and all of the terms and provisions set forth in the official terms of offering are adopted and confirmed as the terms and conditions of the bonds and the sale thereof, and the city shall meet at the time and place fixed therein to consider the amendment to lease and related documents needed to sell the bonds;
(d) City staff, the financial advisor and bond counsel shall work with DEDA to arrange for the sale of the bonds;
(e) The terms and conditions of the amendment to lease and the bonds shall be approved in a subsequent resolution of this city council.
STATEMENT OF PURPOSE: The purpose of this resolution is to request DEDA to issue refunding bonds for the Washington School Community Center project and approves the official terms of offering.