DEPARTMENT: Central Operations Administration
FILE TYPE: Regular Action
TITLE
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Scheduling Of Public Hearing On Issuance Of Revenue Obligations By City Of Lilydale To Finance Project By 360 Communities
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RESOLUTION
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NOW, THEREFORE, BE IT RESOLVED, That by the Board of Commissioners of Dakota County, Minnesota, as follows:
Section 1. Definitions. The capitalized terms used in this resolution have the meanings assigned below:
Acts: Minnesota Statutes, Sections 469.152 through 469.165, as amended, and Minnesota Statutes, Section 471.656, as amended.
Bond Counsel: the law firm of Fryberger, Buchanan, Smith & Frederick, P.A.
Borrower: 360 Communities, a Minnesota nonprofit corporation.
County: Dakota County, Minnesota.
Code: the Internal Revenue Code of 1986, as amended.
Governing Body: the Board of Commissioners of the County.
Issuer: City of Lilydale, Minnesota, the issuer of the Obligations.
Obligations: the Issuer’s proposed tax-exempt 501(c)(3) Facilities Revenue Note (360 Communities Project), Series 2026, in the maximum aggregate principal amount of $8,000,000.
Project: the demolition of an existing facility, and construction and equipping of an approximately 28,550 square-foot new facility suitable for the Borrower’s Qualified Services and Activities, to be located at 4345 Nicols Road, in the City of Eagan, Minnesota.
Qualified Services and Activities: providing social services, including, but not limited to, assistance to the poor, distressed, or underprivileged, in revenue-producing facilities, and such other charitable services and activities as are undertaken by organizations described in Section 501(c)(3) of the Code.
Section 2. Recitals. The Governing Body makes the following statements of fact:
2.01 Representatives of the Borrower have represented to the County that:
(a) the Borrower is a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Code;
(b) the Borrower is engaged in Qualified Services and Activities, which the Project supports;
(c) the Borrower desires to undertake the Project;
(d) the Borrower desires to finance the Project, fund required reserves and capitalized interest, if any, and pay costs of issuance associated with the financing, all through the issuance by the Issuer of the Obligations in an amount not to exceed $8,000,000; and
(e) the economic feasibility of the Project will be greatly enhanced through the issuance of the Obligations for the Financing Purposes in an amount not exceeding $8,000,000.
2.02 Bond Counsel has informed the County as follows:
(a) the Acts provide the legal authority for the issuance of the Obligations;
(b) Sections 469.152 through 469.1655 of the Acts authorize a municipality to issue revenue obligations to finance a project consisting of any properties, real or personal, used or useful in connection with a revenue producing enterprise;
(c) in order for interest on the Obligations to be exempt from federal income taxation, the tax-exempt bond rules of the Code require that each jurisdiction in which at least a portion of the Project is located must hold a public hearing on the Project and approve the issuance of the Obligations; and
(d) in order for the Obligations to be legally issued by the Issuer, Section 471.656 of the Acts requires, among other things, that the County consent to the issuance of the Obligations by the Issuer.
Section 3. Public Hearing.
3.01 The County agrees to hold a public hearing on the Project and the issuance of the Obligations by the Issuer. 3.02
3.02 Bond Counsel, at the direction of the County Manager, is authorized and directed to publish the notice substantially in the form attached hereto as Exhibit A (the “Notice”) in the official newspaper of the County and a newspaper of general circulation in the County not less than 10 days nor more than 30 days prior to the date set for the public hearing.
Section 4. County Costs. The Borrower has agreed that it will pay the administrative fees of the County and pay, or upon demand reimburse the County for payment of, any and all costs incurred by the County in connection with the issuance of the Obligations, whether or not the Project is carried to completion, or the Obligations are issued; and
BE IT FURTHER RESOLVED, That the public hearing be held on Tuesday, August 4, 2026, at 9:00 a.m. Dakota County Administration Center Boardroom, Hastings, Minnesota.
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BACKGROUND
Dakota County has been asked to serve as the host by 360 Communities for their Lewis House project in Eagan. Internal Revenue Service rules require tax-exempt financing for a 501c3 organization be approved by the host, which is the location in which the project resides. For this project, it would be either the City of Eagan or Dakota County. A letter from the project bond counsel is attached as background on this process.
Dakota County served as a host for the St. Francis Healthcare and Senior Living Facility in Farmington in 2024.
RECOMMENDATION
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The Deputy County Manager recommends that a public hearing be set for Tuesday, August 4, 2026, at 9:00 a.m., in the Boardroom, Dakota County Administration Center in Hastings for the purpose of serving as a host for the 360 Communities Lewis House project as required by Internal Revenue Service rules.
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FINANCIAL AND STAFFING IMPACTS
Dakota County incurs no financial liability, obligations or costs by serving as the host for this project.
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Bond Counsel Letter
CONTACT
Department Head: David McKnight
Author: David McKnight