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� � �f&ces in <br />. <br />" � IVlinncapolis <br />5aint Paul <br />5G Cloud <br />'C H A R T E.R E D <br />Wednasday; August 24, 20.11 <br />Patrick Kiaers <br />Administrator <br />Ci�y of P,rden HilIs <br />1245 Highway 96 West <br />Arde�t Hills, Minnesata SS112-5'143 <br />470 Li.S. Sank Plaza <br />2Q0 5ouch Sixth Saeet <br />Minneapolis, ME+1554D2 <br />(G12J 337-930D tdephone <br />(�iz) 33�-��ya � <br />�vww kennedp-graven.com <br />�rmarivelkceion, Equ�] C3ppormnity Emplayer <br />Re: Pr�sbyteriari Homes ofArden Hills, inc. Project <br />� <br />The City of Aard�n Hills, (the "City"} �nfer� .into a Cantract..for Private Devslapment; dat�d <br />December Z�, 20 TO {the "Development Con�ract"}; with Presbyterian Homes flf Arden Hills, Inc., a <br />Minnesata nonpro�t carporation (the "BpiipWEi"}, vvit� respect to the proposed developmant by the <br />Borrowcr o� a seniar housing faciliiy compz�sing independenfi liv�ng units, assisted iiving units, and <br />memory-eare unit� (a comhined total nf apprax�€xnately 166 dwe�liz�g units} to be lacated. at 3120 and 3220 <br />La1ce Johanna 8oule�ard iri the City (tl�e "Projec�'). Th� Project wiil replace an existing senior hausing <br />facility of the Borrower located at the sarne address: Pitrsuant �o tl�,e ter�ns of Article V�[ af t�ze <br />D�velapmeni Can#ract, the Ciiy agreed to issue housizxg revenue bonds under the Municipai Honsing Act, <br />Minnesota 5.tatutss, Clxapter 4�i2C, as amended.�the "Housing Ac�"}, to make a loan to the Borrower to <br />itnance the consix2tction and equipping oifhe Praject a.�d related aosts. <br />At the request ofthe Bozrower, the City Council ofthe City held a public hearing an the praposecl <br />issuance of housing revenue bonds fo finance .the P-rojec:t and, followin.g #he p.ublic hearing, adapted <br />Resolution No,. 2U11-039 whiah; (i} apprflved a housing �ragra3n pre�iarec� in accordance. vvifh the <br />requiremenfs of the Housing Act; (ii) .granteii preliminary:apgroval ta the issuance af housing revenue. <br />bon.ds to finance tire Project; and (iii} authorized certasn o�her actions ta he taken by the 1Viay�nr, the <br />Adrninis�ator, and K�nnedy & Graven, Chartered, as hond counsel to the City. <br />The Borrnwer is naw aequesting that the City Council consider a resolution (tlie "Final <br />ResoIution'� authorizing the iss�ance of: (i) a Senior Housi�g Revenue Note (Presbyterian Homes a� <br />Arden Hzils, Inc. Project), Seriea 2011A (the "Series 2D11A Note"), .iun the original aggregate prineipal <br />arnount oi $10,000,000; and (ii) a Senior Housing Revenue Nate (Pxesb�erian Homes of Arden Hilis, <br />Ittc. PI'pJ�Gt}, 8eries 2(il.2A (tlae "Series 2fl12A Nate"), ia the origi�tial aggregate principal atnount of <br />$i0;OQ0;U00. The Final Resolution a�so approves certain documents referred;to therein which authorize a. <br />loan o£ .ihe prc►ceeds clerived frorri Y,Iie saIe of the Seriss 201"lA Note and the Series 2412,� l�l'ote. <br />(collectively, tlie `�Totes"� to the Borrower and wl�ich provide securiity for �e .Notes. The proceeds <br />aerivect from such iaans are proposed to be applied by the Bqrrower ta the fxrtancing of the Project. <br />`The Borrowsr has proposed that the Bonds be issued as "qualifi�cl ta�c-exe�npt obligat�ons" as <br />cleftned in $ec�ion 265{b}(3}. of th� Internal Revenue Coda of 19.86, as amended (tl�e "Code"�, and the <br />Final Res�latiazi designates ihe Nates as qual�fied tax-exerni�t obliga�ions. The Boriravver �ias agreed that <br />the adminislra�i�e fee payable by the Borrower pursuai�t tn SeCtion 7.1{b) of the Development Contract <br />will be paid by tha Borrower to �te Ci#y with respect ta ail tax-exempt obligati4ns issued to finanos the <br />Pro�act regardless of the actual issuer oi s�ah ohIigations. In �xchange for such fee payment, the City has <br />s <br />-1- <br />