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HomeMy WebLinkAboutRes__4020_Learning_Cricle_PH RESOLUTION NO. 4020 RESOLUTION RELATING TO A PROJECT ON BEHALF OF LEARNING CIRCLE MONTESSORI ELEMENTARY SCHOOL, INC., A MONTANA NONPROFIT CORPORATION, AND THE ISSUANCE OF A REVENUE NOTE TO FINANCE THE COSTS OF ACQUIRING A BUILDING TO BE USED AS A PRIVATE ELEMENTARY SCHOOL UNDER MONTANA CODE ANNOTATED, TITLE 90, CHAPTER 5, PART 1, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO AND CALLING A PUBLIC HEARING THEREON BE IT RESOLVED by the City Commission (the “Commission”) of City of Bozeman, Montana (the “City”), as follows: Section 1. Recitals. 1.01. Pursuant to Montana Code Annotated, Title 90, Chapter 5, Part 1, as amended (the “Act”), the City is authorized to enter into agreements upon terms the Commission considers advantageous and not in conflict with the provisions of the Act to issue revenue bonds or notes of the City and sell such bonds or notes at public or private sale in such manner and at such times as may be determined to be most advantageous; and to loan the proceeds of its revenue bonds or notes for the purpose of defraying the cost of acquiring or improving real and personal properties suitable for use for, among other things, commercial, manufacturing, agricultural, or industrial enterprises; recreation or tourist facilities; local, state, and federal governmental facilities; multifamily housing, hospitals, long-term care facilities, community-based facilities for individuals who are persons with developmental disabilities as defined in 53-20-102, M.C.A., or medical facilities; higher education facilities; electric energy generation facilities; family services provider facilities; the production of energy using an alternative renewable energy source as defined in 15-6-225, M.C.A.; and any combination of these projects. Such revenue bonds or notes may be secured by a pledge of the revenues to be derived by the City from a loan agreement with the borrower, by a mortgage on the project and by such other security devices as the City may deem advantageous. Under the provisions of the Act, any bonds or notes so issued by the City shall be special, limited obligations of the City and shall not constitute or give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. 1.02. It has been proposed that the City, pursuant to the Act, issue its revenue note in an aggregate principal amount not to exceed $400,000 (the “Note”), the proceeds of which will be loaned by the City to Learning Circle Montessori Elementary School, Inc., a Montana nonprofit corporation (hereinafter, the “Borrower”), to finance all or a portion of the costs of acquiring by the Borrower an existing 4,875 square foot building located at 3001 West Villard Street, Bozeman, Montana, for use as a private elementary school (the “Project”), and to pay certain costs and expenses incidental to the issuance and sale of the Note. The maximum aggregate principal amount of the proposed note issue is $400,000. The Project will be owned and operated by the Borrower. Section 2. Preliminary Findings. Based on representations made by representatives of the Borrower to the City, the Commission hereby makes the following preliminary findings, determinations and declarations, subject to final findings, determinations and declarations following the public hearing called pursuant to Section 4 hereof: (a) The Project, as proposed, will be suitable for use as an educational facility eligible for financing under the Act. (b) The City is authorized by the Act to issue its revenue note to defray the costs of making a loan to the Borrower, the proceeds of which will be used to finance part or all of the costs of the acquisition, development, and equipping of the Project and paying the costs and expenses incident to the issuance and sale of the Note, and to enter into an agreement (the “Loan Agreement”) with the Borrower requiring loan repayments from the Borrower in amounts and at times sufficient to pay the principal of and interest on the Note when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In preliminarily authorizing the acquisition, development, and equipping of the Project and the issuance of the Note, the City’s purpose is, and the Commission believes the effect thereof, will be to promote the public welfare of the City and its residents by promoting the growth and development of value added industry using locally produced commodities, providing employment opportunities for its residents, and aiding in economic development in furtherance of the purposes and policies of the Act. (d) The undertaking of the Project and the issuance of the Note to finance all or a portion of the costs thereof are in the public interest. Section 3. Preliminary Approval. This Commission hereby gives preliminary approval to the Project and the issuance of the Note in an aggregate principal amount not to exceed $400,000 to finance all or a portion of the costs thereof, subject to final approval following the public hearing provided for in Section 4, and subject to final determination by the Commission that the financing of the Project and the issuance of the Note are in the best interest of the City. Section 4. Public Hearing. Section 90-5-104 of the Act requires that, prior to the issuance of the Note a public hearing duly noticed shall be held by the City on the proposed Project and the issuance of the Note to finance the costs thereof. Pursuant to such authority, a public hearing on the proposed Project and the issuance of the Note to finance the costs thereof shall be called and held by the Commission on Tuesday, May 29, 2007, at 6:00 p.m., MT, in the Community Room, Third Floor, Gallatin County Courthouse, located at 311 West Main Street, Bozeman, Montana. Section 5. Notice of Hearing. The Clerk of the Commission is hereby authorized and directed to cause notice of the public hearing to be published in the official newspaper of the City, once a week for three consecutive weeks before the date of the hearing, as required by 2 Section 90-5-104(1) of the Act. The notice shall be published in substantially the form attached hereto as Exhibit A (which is hereby incorporated herein and made a part hereof). Section 6. Costs. The Borrower will pay, or upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Note, whether or not the Project is carried to completion and whether or not the Note are issued. PASSED AND APPROVED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, on this 7th day of May, 2007. Jeff Krauss, Mayor Attest: Brit Fontenot, City Clerk APPROVED AS TO FORM: Paul Luwe, City Attorney 3 A-1 EXHIBIT A NOTICE OF PUBLIC HEARING ON PROPOSED ISSUANCE BY THE CITY OF BOZEMAN, MONTANA, OF ITS REVENUE NOTE, AT THE REQUEST OF LEARNING CIRCLE MONTESSORI ELEMENTARY SCHOOL, INC. NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City Commission of the City of Bozeman, Montana (the “Issuer”), on a proposal that the Issuer issue its Revenue Note (Learning Circle Montessori Elementary School, Inc. Project), in a principal amount not to exceed $400,000 (the “Note”), at the request of Learning Circle Montessori Elementary School, Inc., a Montana nonprofit corporation (the “Borrower”). The hearing will be held in the Community Room, Third Floor, Gallatin County Courthouse, located at 311 West Main Street, Bozeman, Montana on Tuesday, May 29, 2007, at 6:00 o’clock p.m. Under the proposal, the Note will be issued to provide financing for a Project consisting of the acquisition by the Borrower of the existing 4,875 square foot building located at 3001 West Villard Street, Bozeman, Montana, for use as a private elementary school (the “Project”). The Project is to be owned and operated by the Borrower. The Issuer will loan the proceeds of the Note to the Borrower and the Borrower will agree to repay the loan at times and in amounts sufficient to provide for payment in full of the Note when due. At said time and place the City Commission shall give all parties who appear an opportunity to express their views with respect to the proposal to undertake and finance the Project and to issue the Note. The Note will be secured by a pledge of the revenues to be derived by the City from a loan agreement with the Borrower and by such other security devices, if any, as may be deemed advantageous. The Note will be a special, limited obligations of the City, and the Note and interest thereon will be payable solely from the revenues pledged to the payment thereof. No holder of the Note will ever have the right to compel any exercise of the taxing power of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City except money payable by the Borrower to the City and pledged to the payment of the Note. Dated: May__, 2007. BY ORDER OF THE BOARD OF CITY COMMISSIONERS Brit Fontenot, City Clerk PUBLISH: May 8, 2007 May 15, 2007 and May 22, 2007 A-2 CERTIFICATE AS TO RESOLUTION I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of a Resolution entitled: “RESOLUTION RELATING TO A PROJECT ON BEHALF OF LEARNING CIRCLE MONTESSORI ELEMENTARY SCHOOL, INC., A MONTANA NONPROFIT CORPORATION, AND THE ISSUANCE OF A REVENUE NOTE TO FINANCE THE COSTS OF ACQUIRING A BUILDING TO BE USED AS A PRIVATE ELEMENTARY SCHOOL UNDER MONTANA CODE ANNOTATED, TITLE 90, CHAPTER 5, PART 1, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO AND CALLING A PUBLIC HEARING THEREON” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on May 7, 2007, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof _____________________________________ ______________________________________________________; voted against the same: ________________________________________________; abstained from voting thereon: ________________; or were absent: __________________. WITNESS my hand and seal officially this ____ day of May, 2007. (SEAL) Brit Fontenot, City Clerk