HomeMy WebLinkAboutResolution - HRA 2017-01 - Redemption of Series 2007A Public Facility Lease Revenue Bonds - 02/14/2017CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
H.R.A. RESOLUTION NO. 2017-01
RESOLUTION RELATED TO PUBLIC FACILITY LEASE REVENUE BONDS,
SERIES 2007 A; APPROVING THE REDEMPTION THEREOF
WHEREAS, the Authority has issued its Public Facility Lease Revenue Bonds, Series
2007 A, dated, as originally issued, as of June 1, 2007 (the "Bonds"), in the original principal
amount of $1,630,000, of which $1,065,000 in aggregate principal amount is currently
outstanding.
WHEREAS, the proceeds of the Bonds were applied as described in a Trust Indenture
dated as of June 1, 2007 (the "Indenture"), between the Authority and Wells Fargo Bank,
National Association, as trustee (the "Trustee"), to finance the construction of an ice rink
addition to the Eden Prairie Community Center (the "Project"). The Project was leased to the
City of Eden Prairie, Minnesota (the "City"), with an option to purchase, pursuant to a Lease-
Purchase Agreement dated as of June 1, 2007 (the "Lease"), between the Authority and the City.
WHEREAS, the Lease provides that the City may prepay the purchase price of the
Project on any date on or after January 1, 2016 (the "Prepayment Option"), for a purchase price
equal to, calculated as of the date the Bonds are to be redeemed, the aggregate unpaid principal
amount, plus interest accrued and due (the "Purchase Price").
WHEREAS, the City has given notice, pursuant to a resolution of the City Council of the
City adopted February 14, 2017, of its election to prepay the Purchase Price of the Project on or
before April 3, 2017 (the "Redemption Date").
WHEREAS, the City has requested that the Authority call the Bonds for redemption on
the Redemption Date.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota (the
"Authority"), as follows:
Section 1. The Authority hereby waives the 60-day prepayment notice requirement under
the Lease and elects to exercise its option to redeem all outstanding Bonds pursuant to Section
3.01 of the Indenture on the Redemption Date, on which date the outstanding Bonds maturing
January 1 in the years 2018 through 2028 shall be redeemed.
Section 2. The Secretary is hereby authorized and directed to deliver to the Trustee a
Notice of Election to Redeem in the form set forth as Exhibit A hereto, and to cause the Trustee
to mail to the registered owners of the Bonds, not less than thirty days nor more than sixty days
before the Redemption Date, a Notice of Redemption substantially in the form set forth as
Exhibit B hereto. No further action shall be required of the Authority to complete the
prepayment, redemption and defeasance of the Bonds.
Section 3. Upon redemption of the Bonds on the Redemption Date, one or more
authorized representatives of the Authority shall execute and deliver to the City, at the expense
of the City, a quit claim deed to the Project, and any other documents or instruments necessary to
convey to the City all of the Authority's rights, title and interest in the Project.
ADOPTED by the Housing and Redevelopment Authority in and for the City of Eden
Prairie, Minnesota this 14th day of February, 2017.
ATTEST:
-2-
CERTIFICATION
I, Rick Getschow, Executive Director of the Housing and Redevelopment Authority in and for
the City of Eden Prairie, County of Hennepin, Minnesota, hereby certify that the foregoin~ is a
true and correct copy of H.R.A. Resolution No. 2017-01 passed by the Authority on the 14t day
of February, 2017.
Executive Director
-3-
Wells Fargo Bank, National Association
625 Marquette Ave. -11th Floor
MAC N93 11-115
Minneapolis, Minnesota 55479
Attn. Corporate Trust Department
Re: Notice of Election to Redeem
EXHIBIT A
February 15, 2017
$1,630,000 Public Facility Lease Revenue Bonds, Series 2007 A (the "Bonds")
Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota
To whom it may concern:
The Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota (the
"Authority"), hereby gives notice pursuant to Section 3.02 of the Trust Indenture dated as of June 1, 2007,
between the Authority and Wells Fargo Bank National Association, as trustee, of its election to exercise
an option to redeem the Bonds pursuant to the Indenture on April 3, 2017, on which date all outstanding
Bonds shall be redeemed at a redemption price equal to par plus accrued interest.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF EDEN PRAIRIE,
MINNESOTA
By~~~~~~~~~~~~~~~~
Chair
By~~~~~~~~~~~~~~~~
Executive Director
-4-
EXHIBIT B
NOTICE OF REDEMPTION
$1,630,000 Public Facility Lease Revenue Bonds, Series 2007 A
Dated June 1, 2007
Housing and Redevelopment Authority in and for the City of Eden Prairie, Minnesota
NOTICE IS HEREBY GIVEN THAT all bonds of the above issue which mature on January 1 in
the following years and amounts:
Interest CU SIP Interest CU SIP
Year Amount Rate Number* Year Amount Rate Number*
2018 $80,000 4.50% 27952EA3* 2024 200,000 4.50 27952EGO*
2020 170,000 4.50 27952EC9* 2026 210,000 4.50 27952EJ4*
2022 185,000 4.50 27952EE5* 2028 220,000 4.50 27952EL9*
* Indicates full call
(the "Redeemed Bonds") are called for redemption and prepayment on April 3, 2017 (the "Redemption
Date"). The Bonds will be redeemed at a price of 100% of their principal amount plus accrued interest to
the date of redemption. Holders of such Bonds should present them for payment on or before said date,
on which date they will cease to bear interest.
A form W-9, Payer's Request for Taxpayer Identification Number, must be completed and returned with
the called bond or 31 % of the bond redemption proceeds will be withheld. Payment of bonds to be
redeemed will be made on and after the Redemption Date, by submitting said bond along with the
completed form W-9 to Wells Fargo Bank, National Association, at the following addresses:
By Mail or Air Courier Service:
Wells Fargo Bank Minnesota, N.A.
Corporate Trust Operations
MAC N9303-121
6th & Marquette
Mpls, MN 55479
By Registered or Certified Mail:
Wells Fargo Bank Minnesota, N.A
Corporate Trust Operations
P.O. Box 1517
Minneapolis, MN 55480-1517
In Person, By Hand:
Wells Fargo Bank Minnesota, N.A.
Northstar East Building
608 2nd A venue South, l21h floor
Minneapolis, MN 55479
If you request payment of principal and/or interest via wire transfer, please be advised there is a wire
transfer fee which will be deducted from your payment.
On the Redemption Date, and upon the satisfaction of any condition to redemption, the Redeemed Bonds
shall cease to bear interest.
The Trustee shall not be responsible for the selection of or use of the CUSIP number, nor is any
representation made as to its correctness indicated in this Notice of Redemption. It is included solely for
the convenience of the Holders.
-5-
Capitalized terms used herein have the meanings given them in the Trust Indenture dated as of June 1,
2007, as amended, between the Issuer and Wells Fargo Bank, National Association.
Dated: _____ , 2017 (a date not less than 30 days prior to the Redemption Date).
WELLS FARGO BANK,
NATIONAL ASSOCIATION, as Trustee
By ~----------------~
-6-