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NEW BUSINESS 9B MEMORANDUM DATE: March 31, 2014 TO:Honorable Mayor and City Council Members Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Calling for a Public Hearing to Grant Host Approval for Presbyterian Homes Revenue Refunding Notes Background It has been proposed that the City of Spring Park $28,000,000 Housing and Health Care Revenue Note, Series 2010 be refunded by the issuance of three separate notes in the approximate amount of $9,300,000 each by three cities; Spring Park, St. Bonafacius, and Chanhassen for a total of $27,900,000. (Please reference the letter attached from Catherine Courtney from Briggs and Morgan, P.A. attached). Host approval is required for the refunding notes as they still include facilities in the City of Arden Hills, so it is necessary for the Issuers to request host approval by the City Council of Arden Hills. Discussion According to our Bond Counsel, John Utley, Kennedy & Graven, Chartered; the notes cannot be issued as tax-exempt obligations unless a notice of public hearing is published in a newspaper of general circulation in the City, the City Council conducts a public hearing consistent with the terms of the public notice regarding approval of the notes, and following the public hearing the City Council approves the issuance of the notes. (See attached letter from John Utley). Presbyterian Homes has submitted an application to the City with respect to the requested host approval and has submitted a non-refundable application fee in the amount of $500 according to our City procedure for application for Private Activity Revenue Bond Financing. (See copy Attached). At this time, the applicant is requesting the Council to set a Public Hearing date of Presbyterian Homes will be present to answer any questions the City Council may have. 12 Page of