Title
RESOLUTION CONSENTING TO THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS BY THE CITY OF RICE LAKE, MINNESOTA
Body
CITY PROPOSAL.
BE IT RESOLVED by the City Council (the “City Council”) of the City of Duluth, Minnesota (the “City”), as follows:
Section 1. Definitions. For purposes of this resolution, capitalized terms have the meanings assigned below:
A. “Bond Counsel” means the law firm of Fryberger, Buchanan, Smith & Frederick, P.A.
B. “Borrower” means Stella Maris Academy, of Duluth, Minnesota.
C. “City” means the City of Duluth, Minnesota.
D. “City Council” means the governing body of the City.
E. “Issuer” means the City of Rice Lake, Minnesota.
F. “Note” means the Issuer’s tax-exempt 501(c)(3) Educational Facilities Revenue Refunding Note, Series 2025, in the maximum aggregate principal amount of $4,100,000.
G. “Prior Note” means the Borrower’s $4,000,000 Promissory Note dated December 1, 2022, delivered to Lender as evidence of the original financing of the Project.
H. “Project” the Borrower’s “Phase I” of the acquisition, demolition, facility preparation, construction, renovation, rehabilitation, and equipping of the high school facilities, located at 4321 Allendale Avenue, in the City, which included, among other things, six new classrooms, a teachers’ workroom, a student workroom, new bathrooms, a student locker room, commons areas, and other various improvements on each of the four floors of the east wing of the building, all originally financed by the Prior Note.
Section 2. General Recitals.
A. We have been informed that the Borrower has requested that the Issuer issue the Note to refund the Prior Note.
B. Bond Counsel has informed the City that Minnesota Statutes, Section 471.656, requires that the City Council consent by resolution to the issuing of the Note by the Issuer.
Section 3. Consent to Issuance by Issuer. The City Council hereby consents to the issuance by the Issuer of the Note to refund the Prior Note.
Statement of Purpose.
STATEMENT OF PURPOSE: This Resolution consents to the issuance and sale by the City of Rice Lake, Minnesota, of a not-to-exceed $4,100,000 Educational Facilities Revenue Refunding Note, Series 2025 (the “Obligation”). The actions consent in this Resolution are required by the laws of the State of Minnesota for the valid issuance of the Obligation and the tax exemption of interest on the Obligation. The proceeds of the Obligation will be used, in part, to refinance debt incurred for a “Project” as described in the resolution.