Item 3.7 Consenting to the Issuance of Conduit Refunding Revenue Bonds
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty October 13, 2025
PRESENTER(s) REVIEWED BY: ITEM #:
Consent Bond Counsel, Taft Law 3.7 – Conduit Bonds
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
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:
City staff recommend the City Council adopt a resolution consenting to a conduit bond refunding.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
In December 2017, the City of Otsego authorized the issuance and sale of Conduit Refunding Revenue Bonds, Series
2017A and 2017B to Evans Park, Inc., a support corporation of Guardian Angels. The issuance provided a refinancing
of project financing for various Guardian Angels facilities in Albertville and Elk River and was issued at the same time
financing was obtained by Evans Park, Inc. for the construction of the Riverview Landing facility in Otsego.
Evans Park, Inc. is in the process of issuing additional financing for the construction of Phase 2 of the Guardian Angels
Engel Haus facility located in Albertville. Aligned with that, they are evaluating refunding the 2017A which was issued
under the City of Otsego. The 2017B issue, also under the City of Otsego will be redeemed (paid in full) with cash
resources by Evans Park, Inc.
The proposed refunding issuance and new issuance are between Evans Park, Inc. and the City of Becker. Therefore the
City of Otsego has been requested to provide consent to the refunding issuance.
The issuance of such bonds does not constitute a financial obligation of the City and does not affect the City’s bond
rating and debt limit. All costs for issuance of the bonds are the obligation of the applicant.
The City’s bond counsel at Taft Law have reviewed the resolution on the City’s behalf and provided consent for the
City Council to consider approval of the resolution.
The Administrative Subcommittee reviewed this request at the October 8, 2025, meeting, and recommended City
Council consideration of adoption.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2025-48
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2025-48 Consenting to the Issuance of Refunding Revenue Bonds by Evans Park, Inc.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
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CERTIFICATE
CITY OF OTSEGO
I, the undersigned being a duly qualified and acting officer of the City of Otsego,
Minnesota, hereby attest and certify that:
1. As such officer, I have the legal custody of the original record from which the
attached resolution was transcribed.
2. I have carefully compared the attached resolution with the original record of the
meeting at which the resolution was acted upon.
3. I find the attached resolution to be a true, correct and complete copy of the
original:
RESOLUTION CONSENTING TO THE ISSUANCE OF REFUNDING
REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, BY
THE CITY OF BECKER, FOR THE REFUNDING OF OUTSTANDING
REVENUE BONDS ISSUED BY THE CITY OF OTSEGO
4. I further certify that the affirmative vote on said resolution was _______ ayes,
_______ nays, and _______ absent/abstention.
5. Said meeting was duly held, pursuant to call and notice thereof, as required by
law, and a quorum was present.
WITNESS my hand officially as such officer this 13th day of October, 2025.
City Clerk
4932-8839-5625\3
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2025-48
RESOLUTION CONSENTING TO THE ISSUANCE OF REFUNDING
REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C,
BY THE CITY OF BECKER, FOR THE REFUNDING OF
OUTSTANDING REVENUE BONDS ISSUED BY THE CITY OF
OTSEGO
BE IT RESOLVED by the City Council of the City of Otsego, Minnesota (the “City”), as
follows:
1. Authority and Bond Refunding. Pursuant to Minnesota Statutes, Chapter 462C,
as amended (the “Act”), the City issued its Refunding Revenue Bonds (Evans Park, Inc. Project),
Series 2017A, in the original aggregate principal amount of $10,010,000 (the “Refunded
Bonds”), and loaned the proceeds thereof (the “Loan”) to Evans Park, Inc., a Minnesota
nonprofit corporation (the “Borrower”), all with the consents of the cities of Albertville and Elk
River, Minnesota, to provide refinancing for Engel Haus, an independent, assisted living and
memory care facility for rental to seniors that includes 63 units, located at 5101 Kassel Avenue
NE in the City of Albertville (the “Facilities”).
The Borrower has proposed that the Series 2017 Otsego Bonds be refunded in full in
order to provide refinancing for the Facilities.
The Borrower has further proposed that refunding revenue bonds (the “Refunding
Bonds”) be issued therefor by the City of Becker (the “Issuer”), to refund the Refunded Bonds,
all in accordance with the Act, including Section 462C.14, Subd. 3, thereof, and Minnesota
Statutes, Section 471.59 (sometimes referred to as the “Refunding”), subject to the consent of the
City, confirming the necessity of the joint action proposed to be taken.
2. Findings. It is hereby found, determined and declared that:
(a) The Refunding will further the purposes and policies of the Act and
promote the public welfare of the City and its residents.
(b) There is no litigation pending or, to the knowledge of the City, threatened
against the City relating to the Facilities, the Refunded Bonds or the Refunding, or
questioning the organization, powers or authority of the City to authorize the issuance of
the Refunding Bonds by the Issuer.
(c) Under the provisions of the Act, the Refunding Bonds shall not be payable
from or charged upon any funds other than amounts pledged thereto, including amounts
to be payable by the Borrower pursuant to a loan agreement or similar agreement with the
Issuer; the City will not be subject to any liability thereon; no owner of the Refunding
Bonds shall ever have the right to compel the exercise of the taxing power of the City to
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pay the Refunding Bonds or the interest thereon, nor to enforce payment thereof against
any property of the City; neither the Bonds nor any document executed or approved in
connection with the issuance thereof shall constitute a pecuniary liability, general or
moral obligation, charge, lien or encumbrance, legal or equitable, upon any property of
the City; and the Bonds shall not constitute or give rise to a charge against the general
credit or taxing powers of the City.
3. Approval of Refunding . Approval is hereby given to the issuance of the portion
of the Refunding Bonds necessary to pay the Refunded Bonds outstanding in the aggregate
principal amount of $8,070,000.
None of the Bonds shall constitute a charge, lien or encumbrance, legal or equitable,
upon any property of the City, or a pledge of or charge against the City’s general credit or taxing
powers.
All costs of the City relating to the issuance of the Refunding Bonds, whether or not the
Refunding Bonds are successfully issued, shall be paid or reimbursed by the Borrower.
The Borrower and other parties are hereby authorized to undertake preparation of such
documents as may be necessary or desirable in connection with the issuance of the Refunding
Bonds and the redemption of the Refunded Bonds, including such notices, loan agreements, trust
indentures, and further legal and disclosure documents as the Borrower may determine to be
necessary or desirable.
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Adopted by the City Council of the City of Otsego this 13th day of October, 2025.
Mayor
ATTEST:
City Clerk