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Page 1 of 2 <br /> <br />PUBLIC HEARING – 7B <br /> MEMORANDUM <br /> <br />DATE: June 8, 2015 <br /> <br />TO: Honorable Mayor and City Council Members <br /> Patrick Klaers, City Administrator <br /> <br />FROM: Sue Iverson, Director of Finance and Administrative Services <br /> <br />SUBJECT: Public Hearing for Presbyterian Homes Request for Conduit <br />Debt Financing <br /> <br />Action Requested <br /> <br />Approval of Resolution 2015-034, approving a housing program relating to a senior <br />rental housing development to be located in the City of Arden Hills; granting preliminary <br />approval to the issuance of revenue obligations by the City to finance the senior rental <br />housing development, and approving and authorizing certain related actions. <br /> <br />Background <br /> <br />The City has issued Conduit Debt for Presbyterian Homes in the past and is now looking <br />to proceed with Phase 2 of their development, the Johanna Shores Brownstones. On May <br />11, 2015 the City passed a resolution calling for a Public Hearing to be held on June 8, <br />2015. <br /> <br />Discussion <br /> <br />Presbyterian Homes of Arden Hills, Inc. has submitted an application to the City with <br />respect to the requested host approval and has submitted a non-refundable application fee <br />in the amount of $500 according to our City procedure for application for Private Activity <br />Revenue Bond Financing. This issuance is done in accordance with the original <br />development agreement dated December 20, 2010, and the fees established in that <br />agreement in Section 7.1. The fees collected on this conduit debt issuance will be <br />$25,000. <br /> <br />In the attached letter from the City’s Bond Counsel, John Utley, the project is <br />summarized and outlines the process needed to proceed with this request. Following the <br />public hearing, the Council will be asked to approve the attached resolution. A summary <br />of the housing program is also included. <br />