HomeMy WebLinkAboutResolution - 2017-27 - Community Center Bonds Prepayment of Lease & Redemption of Bonds for HRA - 02/14/2017 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2017-27
RESOLUTION AUTHORIZING PREPAYMENT OF LEASE AND REDEMPTION OF
OUTSTANDING BONDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF EDEN PRAIRIE
WHEREAS, the Housing and Redevelopment Authority in and for the City of Eden
Prairie, Minnesota (the "Authority"), has issued its Public Facility Lease Revenue Bonds, Series
2007A, 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, 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, Section 10.1 of 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").
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden
Prairie, Minnesota(the "City"), as follows:
Section 1. The City hereby elects to exercise its Prepayment Option under the Lease and
an authorized representative of the City has heretofore or will give notice to the Authority and
Trustee of such election. Any action heretofore taken by City staff with respect to such notice
and exercise of the Prepayment Option is hereby ratified. Staff action necessary to redeem the
bonds is hereby approved.
Section 2. On or before April 3, 2017 (the "Redemption Date"), on which date the
outstanding Bonds maturing January I in the years 2018 through 2028 shall be redeemed, the
City will pay to the Trustee, on behalf of the Authority, the Purchase Price.
Section 3. The City hereby requests the Authority call for the redemption of the Bonds
on the Redemption Date pursuant to the terms of the Indenture.
ADOPTED by the Eden Prairie City Council on February 14, 2017.
N c yr u ayor
ATTEST: SEAL
Ka Teen Porta, City Clerk