07-57Extract of Minutes of a Meeting of the
City Council of the
City of Otsego, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the
City of Otsego, Minnesota, was duly held at the City Hall in said City on Monday, the 27th day of
August, 2007, at 6:30 o'clock P.M.
The following members were present: Mayor Larry Fournier; Councilmembers: Vern
Heidner, Jessica Stockamp, Mark Thorsted and Tom Darkenwald.
and the following were absent: None
adoption:
Member Mayor Larry Fournier introduced the following resolution and moved its
RESOLUTION NO. 2007- 57
RESOLUTION CALLING FOR A PUBLIC HEARING ON
THE ISSUANCE OF LEASE REVENUE BONDS AND
AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING
(KALEIDOSCOPE CHARTER SCHOOL PROJECT)
The motion for the adoption of the foregoing resolution was duly seconded by member
Mark Thorsted, and after full discussion thereof and upon vote being taken thereon, the following
voted in favor thereof. Mayor Larry Fournier, Councilmembers: Vern Heidner, Jessica Stockamp,
Mark Thorsted and Tom Darkenwald.
and the following voted against the same: NONE
whereupon said resolution was declared duly passed and adopted.
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RESOLUTION CALLING FOR A PUBLIC HEARING ON
THE ISSUANCE OF LEASE REVENUE BONDS AND
AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING
(KALEIDOSCOPE CHARTER SCHOOL PROJECT)
(a) WHEREAS, Minnesota Statutes, Sections 469.152 through 469.1651, relating
to municipal industrial development (the "Act"), gives municipalities the power to issue revenue
obligations for the purpose of providing necessary educational facilities; and
(b) WHEREAS, the City of Otsego, Minnesota ("Otsego"), has received from KCS
Building Company, a Minnesota nonprofit corporation and 501(c)(3) organization (the "Borrower"), a
proposal that City of Falcon Heights, Minnesota ("Falcon Heights") undertake a program to assist in
financing, among other things, a Project described in Exhibit A which is located in Otsego, through the
issuance of a revenue bond or obligation (in one or more series) (the 'Bonds") pursuant to the Act; and
(c) WHEREAS, Otsego has been advised that a public hearing and City Council
approval of the financing of the Project is required under the Act and Section 147(f) of the Internal
Revenue Code because the project to be financed by the Bonds is located in Otsego:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego,
Minnesota, as follows:
1. A public hearing on the proposal of the Borrower will be held at the time and
place set forth in the Notice of Public Hearing attached hereto as Exhibit A.
2. The City Clerk is hereby authorized and directed to cause notice of the hearing
to be given one publication in the official newspaper of Otsego and a newspaper of general circulation
available in Otsego, not less than 14 days nor more than 30 days prior to the date fixed for the hearing,
substantially in the form of the attached Notice of Public Hearing.
Adopted by the City Council of the City of Otsego, Minnesota, this 27th day of August, 2007.
ATTEST:
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STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
I, the undersigned, being the duly qualified and acting City Clerk of the City of Otsego,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and complete
transcript of the minutes of a meeting of the City Council of said City duly called and held on the date
therein indicated, insofar as such minutes relate to calling for a public hearing on the issuance of a
revenue obligation.
WITNESS my hand this 27th day of August, 2007.
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EXHIBIT A
NOTICE OF PUBLIC HEARING
ON A PROPOSAL FOR THE ISSUANCE OF REVENUE BONDS FOR THE
KALEIDOSCOPE CHARTER SCHOOL
Notice is hereby given that the City Council of the City of Otsego, Minnesota (the "City")
will meet at the City Hall, 8899 Nashua Avenue NE, in the City, at 6:30 p.m. on Monday,
September 24th, 2007 to consider giving host approval to the issuance by the City of Falcon
heights, Minnesota ("Falcon Heights") of revenue bonds or other obligations, in one or more
series, under Minnesota Statutes, Sections 469.152 through 469.1651 (the "Act"), in order to
finance the cost of a project located in the City.
The "Project" consists the acquisition, construction and equipping of an approximately
40,000 square public elementary schoolhouse located on Kollard Avenue west of County Road
19 in the City. The Project will be owned by KCS Building Company, a Minnesota nonprofit
corporation having federal income tax-exempt 501(c)(3) status (the 'Borrower") and leased to
and operated by Kaleidoscope Charter School, a Minnesota non-profit corporation having federal
income tax-exempt 501(c)(3) status as a public (charter) school.
The maximum estimated principal amount of the Bonds to be issued by Falcon Heights to
finance the Project is $9,000,000.
The Bonds if and when issued will not constitute a charge, lien or encumbrance upon any
property of the City, except the Project, and such obligations will not be a charge against the
general credit or taxing powers of the City but will be payable from sums to be paid by the
Borrower pursuant to a revenue agreement.
At the time and place fixed for the Public Hearing, the City Council will give all persons
who appear at the hearing an opportunity to express their views with respect to the proposal.
Written comments will be considered if submitted at the above City office on or before the date
of the hearing.
Published: Star News 09-05-07
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