04-28-14-R - Laserfiche WebLink

Home Browse Search

PUBLIC HEARINGS 7B MEMORANDUM DATE: April 28, 2014 TO:Honorable Mayor and City Council Members Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Public Hearing to Grant Host Approval for Presbyterian Homes Revenue Refunding Notes and Amended Joint Powers Agreement 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 and an amended and restated joint powers agreement. Discussion According to our Bond Counsel, John Utley, Kennedy & Graven, Chartered; the notes cannot be issued as tax-exempt obligations until the City Council conducts a public hearing regarding approval of the notes, and following the public hearing the City Council approves the issuance of the notes and the amended and restated Joint Powers Agreement. (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. At the March 31, 2014, City Council meeting, the City Council passed a resolution calling for a Public Hearing on April 28, 2014. be present to answer any questions the City Council may have or the public may have at the Public Hearing related to this matter. 12 Page of