HomeMy WebLinkAboutVIII-07 Authorize Signature - Declaration for State Bond Proceed Restrictions (City Hall Project)
City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Justin Fortney, City Planner
Date: November 4, 2024
Item: Declaration – State Bond Proceed Restrictions - City Hall Project
COUNCIL ACTION REQUESTED
Council is requested to authorize signature of the attached document declaring that the use of General
Obligation Bond Proceeds on the City Hall building subjects the building to certain restrictions and
encumbrances.
BACKGROUND INFORMATION
Building projects funded with General Obligation Bond Proceeds are restricted as follows. Please see the
attached Declaration for specifics.
A. City Hall cannot be sold, mortgaged, encumbered or otherwise disposed of without the approval
of the Commissioner of MMB (Minnesota Management and Budget).
B. City Hall is subject to all the terms, conditions, provisions, and limitations contained in the
General Obligation Bond Proceeds Grant Agreement.
C. The Declaration will be effective for 125% of the useful life (37.5 years) of the Restricted
Property or until the Restricted Property is sold with the written approval of the Commissioner
of MMB.
While some work is occurring in the Police Department building, it is not being funded with GO Bond
Proceeds and doesn’t require restriction.
Most of the project is complete. The scaffolding is being moved to the center cupola for roofing and
other metalwork replacement and rehabilitation similar to the completed corner sections. The
remaining work will begin in the spring and last the 2025 construction season.
ATTACHMENTS
- Declaration
VIII-07
Generic GO Bond Proceeds 1 Ver – 10/26/2020
Grant Agreement for Construction Grants
DECLARATION
The undersigned has the following interest in the real property located in the County of
Dakota, State of Minnesota that is legally described in Exhibit A (the “Owner’s Property”):
(Check the appropriate box.)
X a fee simple title,
a lease, or
an easement;
And a portion of the Owner’s Property contains facilities that are being improved using General
Obligation Bond Proceeds, the portion of which is legally described on Exhibit B (the “Restricted
Property”), therefore, the undersigned does hereby declare that such interest in the Restricted
Property is hereby made subject to the following restrictions and encumbrances:
A. The Restricted Property is bond financed property within the meaning of Minn. Stat.
§ 16A.695, is subject to the encumbrance created and requirements imposed by such
statute, and cannot be sold, mortgaged, encumbered or otherwise disposed of without
the approval of the Commissioner of Minnesota Management and Budget, which
approval must be evidenced by a written statement signed by said commissioner and
attached to the deed, mortgage, encumbrance or instrument used to sell or otherwise
dispose of the Restricted Property; and
B. The Restricted Property is subject to all of the terms, conditions, provisions, and
limitations contained in that certain General Obligation Bond Proceeds Grant
Agreement – Construction Grant for the Hastings City Hall Repair Project between the
City of Hastings, a Minnesota municipal corporation and the Minnesota Department of
Employment and Economic Development, dated _________, 2024.
VIII-07
Generic GO Bond Proceeds 2 Ver – 10/26/2020
Grant Agreement for Construction Grants
The Restricted Property shall remain subject to this State of Minnesota General Obligation Bond
Financed Declaration for 125% of the useful life of the Restricted Property or until the Restricted
Property is sold with the written approval of the Commissioner of Minnesota Management and
Budget, at which time it shall be released therefrom by way of a written release in recordable form
signed by both the Commissioner of the Minnesota Department of Employment and Economic
Development and the Commissioner of Minnesota Management and Budget, and such written
release is recorded in the real estate records relating to the Restricted Property. This Declaration
may not be terminated, amended, or in any way modified without the specific written consent of
the Commissioner of Minnesota Management and Budget.
[The remainder of this page is initially left blank.]
VIII-07
Generic GO Bond Proceeds 3 Ver – 10/26/2020
Grant Agreement for Construction Grants
IN WITNESS WHEREOF, the parties hereto have caused this document to be executed as
of the day and year first above written.
CITY:
CITY OF HASTINGS
By:
Mary Fasbender
Its Mayor
By:
Kelly Murtaugh
Its City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
On this ___ day of ______________________, 2024, before me a Notary Public within and
for said County, personally appeared Mary Fasbender and Kelly Murtaugh, to me personally
known, who being each by me duly sworn, each did say that they are respectively the Mayor and
City Clerk of the City of Hastings, the municipality named in the foregoing instrument, and that
said instrument was signed on behalf of said municipality by authority of its City Council and said
Mayor and City Clerk acknowledged said instrument to be the free act and deed of said
municipality.
Notary Public
This instrument drafted by:
City of Hastings
Community Development Department
101 4th St. E.
Hastings, MN 55033
VIII-07
Generic GO Bond Proceeds 4 Ver – 10/26/2020
Grant Agreement for Construction Grants
Exhibit A to Declaration
LEGAL DESCRIPTION OF OWNER’S PROPERTY
Real property located in the City of Hastings, Dakota County, Minnesota, legally described as
follows:
Block 20, Town of Hastings, Dakota County Minnesota, according to the recorded plat
thereof.
PID: 19-32150-20-010
Abstract Property
VIII-07
Generic GO Bond Proceeds 5 Ver – 10/26/2020
Grant Agreement for Construction Grants
Exhibit B to Declaration
LEGAL DESCRIPTION OF RESTRICTED PROPERTY
Real property located in the City of Hastings, Dakota County, Minnesota, legally described as
follows:
The south 185 feet of the west 193 feet of Block 20, Town of Hastings, Dakota County
Minnesota, according to the recorded plat thereof.
VIII-07