7A, Presbyterian Homes Conduit Debt

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� EN H�LLS MEMORANDUM DATE: August 29, 20ll TO: Honorable Mayor and City Councilmernbexs Pairick Klaers, City Adrninistrator FROM: Sue �verson, Directar af Finance and Administrative Services SUBJECT. Presbyterian Homes Conduit Debt Back�round The City held a Public Hearing on 7uly 25, 2011, and adopted a resolution approving a housing progratn, granting preliminary approval to the issuance of housing revenue bonds to finance the project, and authorized certain other actions to be taken by the Mayor, Administrator, and ihe City's bond counsel. Presbyterian Homes is now requestir�g the City Council io consider a resolutian auti�orizing the issuance of twa bonc� issues, Series 20� 1A for $10,00�,000 and Series 2012A for $10,000,000. Because we can only issue $10,000,000 of bank qualified debt per calendar year, they are issuing $1p,000,000 in 2011 and $10,000,00Q in early 2012. They are using another "host" city to issue the remaining $14,�00,000 in a similar manner. The City of Arden Hills will receive the entire �'ee as if we issued the $34,000,000. The City's Bond Counsel has provided the attached letter an.d will be present at the meeting to answer any additional questions the Council may have. Council Ac�ion Re uested A motion to adapt Resolution 2011-042, a resolution authorizing the issuance and sale of Seniar Housing Revenue Notes {Presbyterian Hornes of Ard.e� Hil�s, Inc. Praject), Series 201 l A and Series 2012A, in the original aggregate principal amount not to e�ceed $20,000,000; approving the form of and a�thorizing t�e e�ecution and delivery of the nofes, loan agreements, and certain related documents; and providing for the security, rights, and remedies with respect ta the notes. City GvunciI Meeting 11Metro-inetlardenhi11s1AdminlCouncillAgendas & Packet Information1201115-29-i 1 Regu]arlPacket InformationlPres Homes Conduit Debit.doc Page 1 af 1