7A Request from Presbyterian Homes for Conduit Financing

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� �.�N HYLLS nfrEMORa1vDUM DATE: August 21, 2Q08 TO: Honarable Mayor and City Council Ron Moorse, City Administrator FROM: Sue Iverson, Finance Director ��1�` SUBJECT: Requesi from Presbyter�an Homes for Conduii Financing Background: MHC has been engaged by PHM&S Office Building LLC (single me�nber LLC of Presbyterian Hozz�es Management and Service, Inc.) to arrange a tax-exempt financing of its scheduled office expansion main office building and a refinancing of its outstanding mortgage. At ihe July 14, 2008 work session, Steve Fenlon, MHC, presented the proposal to the City Council. The Council directed staff to negotiate the tei-ms for the fee paid to the City of Arden Hills for the use of its bank qualification. On July 28, 2008, the City Council agreed to act as Issuer for Presbyterian Homes for an issuer's fee equal '/2 of 1.00% of the par amount of the Series 2008 note plus all costs incurred by the City for the issuance of the note. Discussion: Attached to this memo are t�e loan agreement, forrm of note, pledge agreement, resolution, and DEED ap�lication to complete this transaction. A public hearing wi11 be held at the Council meeting as required by Minnesota Stat�tes, Chapter 469.152 to 469.1651 and Section 147(� of the Internal Revenue Code of 1986 as amended. Staff Recommendation: Staff recammends Council adopt Resolution 2008-042, a Resolution approving the issuance and sale of a Cammercial Facilities Revenue Note, Se�ies 2008 and authorizing the execution of documents relating thereto (PHM&S Building Project).