Laserfiche WebLink
470 US Bank Plaza <br />200 South Sixth Street <br />Minneapolis MN 55402 <br />F� <br />CHARTERED <br />{612) 33']-9300 telephone <br />{612} 337-9310 fax <br />http:/lwww, kennedy-graven. com <br />MEMORANDUM <br />TO: Patrick Klaers <br />Jill Huimacher <br />Sue Tverson <br />FROM: Stephen Bubul <br />DATE: Jizne 22, 2011 <br />RE: Housing Revenue Bonds for Presbyterian Homes of Arden Hills, Inc. <br />As you know, the City entered into a Cantrac� for Private Deve�opment with Presbyterian <br />Homes of Arden Hills, inc. (the "Developer") dated Decer�ber 20, 2010 (the "Contract"), <br />undex which tiae City ag�reed to provide certa�in tax incrennent finax�.cing assistance in <br />connection with redevelopment of Developer's senior housing campus in the City. <br />The Developer intends to finance that r�development, in pa�t, through housing revenue <br />bonds, which are also sometir�es referred to as "conduit bonds." These bonds are issued <br />by �lie City, and the proceeds are loaned to the private entxty, which has sole <br />responsibilrty to repay the loan (and the bonds). When the City issues such bonds, it <br />typically collects an administrativ� fee, as described in the City's Private Acti�ity Bond <br />Policies. <br />I�n ihe Contraci, tkie City and Developer agreed on a fee schedule for all the conduit bonds <br />issued for redevelopment of Developer's facility in the City (referred to as the "Housing <br />Revenue Bonc�s"}. This fee schedule (which varies somewhat from Private Activity <br />Sond Policies) is as follows: <br />1% af the f�rst $5,000,000 in principal amount o�Housing Revenue Bonds; <br />.5% o�the �e� $15,000,000 in original principal azxxouxit; and <br />.25% of the principal amount in excess of $20,000,000. <br />