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2005-01 _-c "'. e RESOLUTION NO. 2005-01 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165 AND REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT FOR APPROVAL BE IT RESOLVED, by the governing body (the "Board") of the Economic Development Authority of the City of Chanhassen, Minnesota (the "Issuer"), as follows: Section 1. . Section 2. e a. Description of the Proiect. Chapel Hill Academy (the "Borrower") located at 306 West 78th Street in Chanhassen, Minnesota, a Minnesota nonprofit corporation and organization described in Section 501 (c )(3) of the Internal Revenue Code of 1986, as amended (the "Code") has proposed issuance of revenue obligations, in one or more series, in an amount not to exceed $1,400,000 (the "Note") for the purpose of refinancing the outstanding principal amount of the Chapel Hill Academy, City of Chanhassen, Minnesota, First Mortgage Bonds, 1999 Series, dated June 1, 1999, issued by the Borrower in the original principal amount of $1,620,000 for the purpose of acquiring a kindergarten through eighth grade school facility, including a cafeteria and gymnasium, located on approximately 4.8 acres of land at 306 West 78th Street in Chanhassen, Minnesota (the "Project") and paying costs associated with the financing. b. The Project will be owned and operated by the Borrower. Recital of Representations Made bv the Borrower. a. The Issuer has been advised by representatives of the Borrower that: (i) conventional financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced; (ii) on the basis of information submitted to the Borrower and their discussions with representatives of area financial institutions and potential buyers of tax-exempt bonds, the Note could be issued and sold upon favorable rates and terms to finance the Project; and (iii) the Project would not be undertaken in their present form but for the availability of financing under the Act. b. The Borrower has agreed to pay any and all costs incurred by the Issuer in connection with the issuance of the Note, whether or not such issuance is carried to completion. c. The Borrower has represented to the Issuer that no public official of the Issuer has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. -. . . . . e e Section 3. Section 4. Public Hearing. a. A Notice of Public Hearing was published in the Chanhassen Villager, the Issuer's official newspaper and a newspaper of general circulation, calling a public hearing on the proposed issuance of the Note and the proposal to undertake and finance the Project. b. The Issuer has, on December 12, 2005, held a public hearing on the issuance of the Note and the proposal to undertake and finance the Project, at which all those appearing who desired to speak were heard and written comments were accepted. Findings. It is hereby found, determined, and declared as follows: a. The welfare of the State and the Issuer requires the provision of necessary educational facilities so that such facilities are available to residents of the State and the Issuer at reasonable cost. b. The Issuer desires to facilitate the selective development of the community and help to provide the range of services and employment opportunities required by the population. The Project will assist the Issuer in achieving those objectives; help to stabilize market valuation of the Issuer; help maintain a positive relationship between assessed valuation and debt; and enhance the image and reputation of the community. c. On the basis of information made available to this Board by the Borrower it appears, and this Board hereby finds, that: (1) the Project constitutes properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2 of Section 469.153 of Minnesota Statutes; (2) the Project furthers the purposes stated in Section 469.152 of Minnesota Statutes; (3) the Project would not be undertaken but for the availability of financing under the Act and the willingness of the Issuer to furnish such financing; and (4) the effect of the Project, if undertaken, will be to: (i) encourage the development of economically sound industry and commerce, (ii) assist in the prevention of the emergence of blighted and marginal land, (iii) help prevent chronic unemployment, (iv) provide the range of service and employment opportunities required by the population, (v) help prevent the movement of talented and educated persons out of the State and to areas within the State where their services may not be as effectively used, and (vi) promote more intensive development and appropriate use of land within the Issuer, eventually to increase the tax base of the community. d. The Issuer acknowledges, finds, determines and declares that the provision of necessary education facilities so that such facilities and services are available to residents of the State at a reasonable cost is a public purpose. 2 ~.. 't.. . e e Section 5. Approval. a. The Project and the issuance of the Note are hereby given preliminary approval by the Issuer. b. The President or the Executive Director, or their designee, is authorized and directed to submit the proposal for the Project to the Department of Employment and Economic Development of the State ("DEED") requesting approval, and other officers, employees and agents of the Issuer are hereby authorized to provide DEED with such information as it may require. Section 6. Limited Obligation. The Note, when and if issued for the Project, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Issuer. (There will, however, be a charge, lien or encumbrance on the Project, which is not an asset of the Issuer.) The Note, when and if issued, shall recite in substance that the Note and the interest thereon, are payable solely from revenues received from the Project and property pledged for payment thereof, and shall not constitute a debt of the Issuer. Adopted: December 12, 2005 -L-. A. M: IDOCSI/6/641000000\ROL IlfW 4052. DOC 3