DEPARTMENT: Central Operations Administration
FILE TYPE: Regular Action
TITLE
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Public Hearing To Consider Giving Host Approval To Issuance By City Of Lilydale Of Revenue Obligations For 360 Communities Project
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RESOLUTION
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WHEREAS, 360 Communities has asked Dakota County to serve as the host for their Lewis House project in Eagan; and
WHEREAS, funding for the project includes the issuance of revenue obligations by the City of Lilydale, Minnesota in an amount not to exceed $8,000,000; and
WHEREAS, Dakota County will not be responsible for the repayment of any of the principal or interest costs for the project.
NOW, THEREFORE, BE IT RESOLVED, by the governing body of Dakota County, Minnesota, as follows:
Section 1. Definitions. The capitalized terms used in this resolution have the meanings assigned below:
Acts: collectively, Minnesota Statutes, Sections 469.152 through 469.165, and Sections 471.59 and 471.656, each as amended.
Authorized Officers: the Chairperson and County Manager of the County.
Bond Counsel: the law firm of Fryberger, Buchanan, Smith & Frederick, P.A.
Borrower: 360 Communities, a Minnesota nonprofit corporation.
Code: the Internal Revenue Code of 1986, as amended.
Cooperation Agreement: means the Cooperation Agreement between the County and the Issuer relating to the exercise of joint powers pursuant to Sections 471.59 and 471.656 of the Acts.
County: Dakota County, Minnesota.
Governing Body: the Board of Commissioners of the County.
Issuer: the City of Lilydale, Minnesota, as the issuer of the Obligations.
Obligations: the Issuer’s tax-exempt, not-to-exceed $8,000,000 501(c)(3) Facilities Revenue Note (360 Communities Project), Series 2026.
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, engaged directly or through one or more of its affiliated organizations in providing Qualified Services and Activities;
(b) the Borrower desires to finance the Project through the issuance by the Issuer of tax-exempt revenue obligations in an amount not to exceed $8,000,000.
2.02 Bond Counsel has advised the County as follows:
(a) the Acts provide the legal authority for the issuance of the Obligations;
(b) 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 a portion of the Project is located must hold a public hearing 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 that the County consent to the issuance of the Obligations by the Issuer as described in the Cooperation Agreement.
Section 3. Limitations. The Obligations, when, as and if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the County or the Issuer, and the Obligations, when, as and if issued, shall recite in substance that the Obligations, including interest thereon, are payable solely from the revenues received from the Borrower and the property pledged to the payment thereof, and shall not constitute a debt of the County or the Issuer within the meaning of any constitutional or statutory limitation.
Section 4. Public Hearing.
a. A Notice of Public Hearing was published in the Hastings Journal on July 23, 2026, the County’s official newspaper and a newspaper of general circulation, calling a public hearing on the proposed issuance of the Obligations and the proposal to finance the Project.
b. The Governing Body has, on August 4, 2026, held a public hearing on the proposal to approve the Project, and the financing therefor by the issuance of the Obligations by the Issuer, at which all those appearing who desired to speak were heard and written comments were accepted, if submitted.
Section 5. Approvals; Authorizations.
a. The proposal of the Borrower to undertake and finance the Project is approved. The issuance of the Obligations by the Issuer for the Project is approved. The Cooperation Agreement is approved.
b. The Authorized Officers are authorized and directed to execute and deliver the Cooperation Agreement and any other documents or certificates requested by Bond Counsel as necessary for the issuance of the Obligations.
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BACKGROUND
Dakota County has been asked by 360 Communities to serve as the host for the Lewis House project that is being planned in Eagan. Internal Revenue Service rules require tax-exempt financing for a 501c3 organization to be approved by the host, which is the location in which the project resides. For this project, the host would be either Dakota County or the City of Eagan.
The project will be partially funded by the issuance of tax-exempt obligations by the City of Lilydale, Minnesota in an amount not to exceed $8,000,000. Dakota County’s role in the process is to hold a public hearing to receive comment from interested parties (Attachment: Notice of Public Hearing). Once a public hearing is held, the County Board shall consider approving a resolution providing host approval on the issuance of tax-exempt obligations. The resolution includes the approval of a cooperation agreement between Dakota County and the City of Lilydale that defines roles and responsibilities (Attachment: Cooperation Agreement).
Representatives from 360 Communities and their bond counsel will be in attendance at the meeting to answer any questions the County Board may have on this project.
RECOMMENDATION
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The Deputy County Manager recommends that the County Board hold the public hearing and consider any comments made by the public. Once the public hearing is closed, staff recommends that the County Board approve the resolution providing host approval to the issuance of tax-exempt obligations by the City of Lilydale, Minnesota. The resolution includes the approval of a Cooperation Agreement with the City of Lilydale.
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FINANCIAL AND STAFFING IMPACTS
Dakota County will not be charged or liable for any bond or interest costs associated with this project. The staff time associated with serving as the host for the project funding was minimal and the costs for advertising the public hearing were incurred by the bond issuer.
PREVIOUS BOARD ACTION
26-306; 07/07/26
ATTACHMENTS
Attachment: Notice of Public Hearing
Attachment: Cooperation Agreement
Attachment: Presentation Slides
CONTACT
Department Director: David McKnight
Author: David McKnight