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Item 4.1 Establish Development District 2Request for EDA Board of Commissioners Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Administration Executive Director Flaherty July 22, 2024 PRESENTER(s) REVIEWED BY: ITEM #: Administration Bond Counsel, Taft 4.1 – Development District STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. X Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: It is recommended that the Board of Commissioners adopt a resolution establishing an economic development district. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes, will be held on July 22, 2024. BACKGROUND/JUSTIFICATION: The Otsego Economic Development Authority (the “EDA”) is proposing to issue lease revenue bonds pursuant to Minnesota Statutes 469.090 through 469.1082 (the “EDA Act”) to finance a new fire and emergency services building (the “Facility”) on land located in the City of Otsego (the “City”). To do so, the EDA must establish the Economic Development District No. 2 (“District No. 2”) pursuant to Minnesota Statutes 469.101, Subdivision 1, for the area on which the Facility is to be built. The establishment of District No. 2 will provide the EDA with the ability to exercise its full powers under the EDA Act within the District. To establish the District, the EDA must hold a public hearing, scheduled by Resolution 2024-02 on June 24, 2024, and noticed in the Star News and upon the City’s website. After completion of the public hearing, the EDA will consider adoption of a resolution, that it is proper and desirable to establish and develop Economic Development District No. 2. A memorandum from Taft accompanies the proposed resolution within this packet. Representatives from Northland Securities and Taft will be present at the meeting. SUPPORTING DOCUMENTS ATTACHED: •Memorandum from Bond Counsel •Resolution 2024-03 Item 4.1 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Resolution 2024-03Establishing Economic Development District No. 2. BUDGET INFORMATION FUNDING: BUDGETED: N/A N/A Taft Stettinius & Hollister LLP / Taftlaw.com / The Modern Law Firm 2200 IDS Center, 80 South 8th Street Minneapolis, MN 55402-2210 Tel: 612.977.8400 | Fax: 612.977.8650 taftlaw.com Memorandum TO: Adam Flaherty; City Administrator & Finance Director, Otsego, MN FROM: Mary L. Ippel and Maren Magill, Taft Stettinius & Hollister LLP DATE: July 12, 2024 RE: Establishment of Economic Development District No. 2 The Otsego Economic Development Authority (the “EDA”) is authorized pursuant to Minnesota Statutes 469.090 through 469.1082 (the “Act”) to exercise certain powers to provide for industrial and economic development and redevelopment within the City. In order to exercise its full powers under the Act, the EDA must first establish the Economic Development District No. 2 (the "District”) pursuant to Minnesota Statutes 469.101, Subdivision 1. Pursuant to Minnesota Statutes 469.101, Subdivision 1, the EDA caused notice of a public hearing on the establishment of the District to be published in the City newspaper at least ten (10) days prior to the date of the hearing, July 22, 2024. At the close of the public hearing, to establish the District, the EDA must find, pursuant to a resolution (the “Resolution”), that it is proper and desirable to establish and develop the District within the City. A form of this Resolution has been provided to the members of the EDA for their review. The Act does not require the EDA to provide an explanation for its finding that the establishment of the District is proper and desirable. The action by the EDA on July 22, 2024 is only to establish the District. Pursuant to the Act, the EDA is authorized to operate and maintain public facilities within the District. The EDA is considering the issuance of lease revenue bonds (the “Bonds”) at a later date to finance a new fire and emergency services building to be located in the District. If the EDA and City decide to move forward with the issuance of the Bonds, the EDA and City will undertake additional actions in the future to issue the Bonds. 13239200v1 1 EXTRACT OF MINUTES OF A MEETING OF THE OF THE BOARD OF COMMISSIONERS OF THE OTSEGO ECONOMIC DEVELOPMENT AUTHORITY HELD: July 22, 2024 Pursuant to due call and notice thereof, a regular or special meeting of the Board of Commissioners of the Otsego Economic Development Authority, Wright County, Minnesota, was held at the Otsego Prairie Center on July 22, 2024, at 5:30 p.m., for the purpose, in part, of establishing Economic Development District No. 2. The following members of the Board of Commissioners were present: and the following were absent: Commissioner __________ introduced the following resolution and moved its adoption: RESOLUTION 2024-03 ESTABLISHING ECONOMIC DEVELOPMENT DISTRICT NO. 2 A. WHEREAS, it has been proposed that the Board of Commissioners (the "Board") of the Otsego Economic Development Authority (the "EDA") establish Economic Development District No. 2 pursuant to and in accordance with Minnesota Statutes, Sections 469.090 through 469.1082, inclusive, as amended; and B. WHEREAS, the EDA has performed all actions required by law to be performed prior to the establishment of Economic Development District No. 2, including, but not limited to, the holding of a public hearing upon published notice as required by Minnesota Statutes, Sections 469.101, Subdivision 1; and NOW, THEREFORE, BE IT RESOLVED, by the Board as follows: 1. Economic Development District No. 2. There is hereby established in the City of Otsego (the "City") Economic Development District No. 2 (the "Economic Development District"), the initial boundaries of which are fixed and determined as described in Exhibit A. 2. Findings. Economic Development District No. 2 is proper and desirable to establish and develop within the City. The motion for adoption of the foregoing resolution was duly seconded by commissioner _________________ and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: and the following voted against same: whereupon said resolution was declared duly adopted. 13239200v1 2 Adopted this 22nd day of July, 2024 by the Board of Commissioners of the Otsego Economic Development Authority. _________________________ President Attest: ________________________ Its: Secretary 13239200v1 3 STATE OF MINNESOTA COUNTY OF WRIGHT I, the undersigned, being the duly qualified and acting Secretary of the Otsego Economic Development Authority, Minnesota, DO HEREBY CERTIFY that the attached resolution is a true and correct copy of an extract of minutes of a meeting of the Board of Commissioners of the Otsego Economic Development Authority, as such minutes relate to the establishment of Economic Development District No. 2. WITNESS my hand this 22nd day of July, 2024. _______________________________________ Its: Secretary A-1 EXHIBIT A DESCRIPTION OF THE BOUNDARIES OF ECONOMIC DEVELOPMENT DISTRICT NO. 2 The property to be included in Economic Development District No. 2 is identified by the following tax parcel identification number: 118-326-000040, and the following legal description: Outlot D, Ashwood, Wright County, Minnesota, according to the recorded plat thereof.