Item 4.3 EDA Calling a Public Hearing on the Proposed Development District
Request for
EDA Board of Commissioners
Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration Executive Director Flaherty June 24, 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Administration Bond Counsel, Taft 4.3 – Public Hearing
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 scheduling a public hearing.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No Yes, to be held by the EDA 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, and at least ten days before the hearing, the EDA must publish notice of the hearing
in the City newspaper.
At the public hearing, the EDA must find that it is proper and desirable to establish and develop District No. 2 within the
City. At this meeting, the EDA is calling for a public hearing. A form of the notice of public hearing is attached as Exhibit A
to the resolution calling for public hearing.
SUPPORTING DOCUMENTS ATTACHED:
• Memorandum from Bond Counsel
• Resolution 2024-02
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2024-02 Calling for a Public Hearing on the Proposed Establishment of Economic
Development District No. 2 on July 22, 2024, at 5:30PM to be held at the Otsego Prairie Center.
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: June 19, 2024
RE: Authority to Issue Lease Revenue Bonds
The Otsego Economic Development Authority (the “EDA”) is proposing to issue lease
revenue bonds (the “Bonds”) pursuant to Minnesota Statutes 469.090 through 469.1082, and
specifically Section 469.103 thereof (the “Act”) in order to finance a new fire and emergency
services building (the “Facility”) on land (the “Property”) located in the City of Otsego (the “City”)
and owned by the City.
In order to do so, the EDA must first establish the Economic Development District No. 2
(“District No. 2”) pursuant to Minnesota Statutes 469.101, Subdivision 1, which will contain the
Property. The establishment of District No. 2 will provide the EDA with the ability to exercise its
full powers under the Act within the District. To establish the District, the EDA must hold a public
hearing, and at least ten days before the hearing, the EDA must publish notice of the hearing in the
City newspaper.
Following the public hearing, as authorized by the Act, and specifically Section 469.101
thereof, pursuant to a Ground Lease (the “Ground Lease”) the EDA will acquire a leasehold
interest in the Property from the City. The EDA will then lease such Property, together with the
buildings, structures or improvements to be built thereon, to the City pursuant to a Lease-Purchase
Agreement (the “Lease”). The City is authorized by Minnesota Statutes, Section 465.71, as
amended, to acquire real and personal property under lease-purchase agreements.
Proceeds of the Bonds will be loaned by the EDA to the City and applied to finance the
construction and equipping of the Facility. Under the Lease, the City will pay lease payments (the
“Lease Payments”) equal to the debt service on the Bonds in order to eventually acquire the
Facility. When the Bonds are paid in full (either at maturity or at prepayment), the City will own
the Facility outright and the EDA’s leasehold rights under the Ground Lease will terminate. The
City will have the right under the Lease, each year during the term of the Lease, to
“nonappropriate” funds needed for the Lease Payments and to terminate the Lease. If that occurs,
the City will relinquish all rights to the Facility, but will continue to retain its ownership in the
land (subject to the EDA’s leasehold interest in the property).
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EXTRACT OF MINUTES OF A MEETING
OF THE BOARD OF COMMISSIONERS OF THE
OTSEGO ECONOMIC DEVELOPMENT AUTHORITY
HELD: June 24, 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 June 24, 2024, at 5:30 p.m., for the purpose, in part, of
calling a public hearing on the proposed establishment of Economic Development District No. 2.
The following commissioners were present:
and the following were absent:
Commissioner _______________ introduced the following resolution and moved its
adoption:
RESOLUTION 2024-02 CALLING FOR A PUBLIC HEARING ON THE PROPOSED
ESTABLISHMENT OF ECONOMIC DEVELOPMENT DISTRICT NO. 2
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Otsego
Economic Development Authority (the "EDA"), as follows:
1. Public Hearing. This Board shall meet on July 22, 2024, at approximately 5:30
p.m., to hold a public hearing on the proposed establishment of Economic Development District
No. 2, all pursuant to and in accordance with Minnesota Statutes, Sections 469.090 through
469.1082, inclusive, as amended.
2. Notice of Hearing; Filing of Program. The secretary of the EDA is hereby
authorized to cause a notice of the hearing, substantially in the form attached hereto as Exhibit A,
to be published as required by Minnesota Statutes, Sections 469.101, Subdivision 1.
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.
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Adopted this 24th day of June, 2024 by the Board of Commissioners of the Otsego
Economic Development Authority.
________________________
President
Attest: _____________________
Secretary
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STATE OF MINNESOTA
COUNTY OF OTSEGO
I, the undersigned, being the duly qualified and acting Secretary of the Otsego Economic
Development Authority, 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 calling of a public hearing on
the establishment of an economic development district.
WITNESS my hand this _____ day of ___________, 2024.
_______________________________________
Secretary
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EXHIBIT A
OTSEGO ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF WRIGHT
STATE OF MINNESOTA
NOTICE OF PUBLIC HEARING
ON ESTABLISHMENT OF ECONOMIC DEVELOPMENT DISTRICT NO. 2
NOTICE IS HEREBY GIVEN that the Board of Commissioners (the "Board") of the
Otsego Economic Development Authority (the "EDA"), Wright County, Minnesota, will hold a
public hearing on July 22, 2024, at 5:30 p.m., at the Otsego Prairie Center, 8899 Nashua
Avenue NE, in the City of Otsego, relating to the proposed establishment of Economic
Development District No. 2, pursuant to Minnesota Statutes, Section 469.090 through 469.1082,
inclusive, as amended.
The property proposed 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.
All interested persons may appear at the hearing and present their view orally or in
writing.
BY ORDER OF THE BOARD OF
COMMISSIONERS OF THE OTSEGO
ECONOMIC DEVELOPMENT
AUTHORITY
/S/Jessica Stockamp
President