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. . . ARDEN HILLS CITY COUNCIL - SEPTEMBER 10, 2001 2 would issue the bonds without recourse. He noted there was no legal or financial obligation to repay the bonds on part of the city. Mayor Probst stated the city has done this at least twice, would incur no obligation to the community and has no affect on its bond rating. Mr. Lynch concurred. He stated since the city was bank qualified it had to account for these bonds when considering its debt. Mr. Fenlon stated the city must only pass the test once and only in the year, the bonds were sold. He noted the test is whether the city reasonably expects to issue 10 million dollars in bonds, which would include these bonds. He added ifthere was a later emergency bond issue, it would not affect the test. He stated after the year the bonds were sold, the city would never go through that test again. Councilmember Rem asked if this bond was bond strictly for remodeling in Arden Hills and not for additional acquisitions. Mr. Fenlon responded in the affirmative. He stated it was only for capital improvements in the Arden Hills facility. Councilmember Larson stated the resolution references a joint powers agreement. He asked when the city would see a draft of the joint powers agreement. Ms. Jenny Grain, Bond Counsel, responded she would distribute it any time the Council desires it. She stated the City of Arden Hills and the City of Bloomington would be parties to the joint powers agreement. She noted under state law, to issue bonds for housing projects a city is authorized to do it in its jurisdiction or where there is ajoint powers agreement in effect. An unidentified resident of Shorewood Drive, stated his property abuts the eastern side of the Presbyterian Homes facility. He noted this past August 7th he was served a summons. He added Presbyterian Homes wanted to merge parcels of land. He stated that five days later he received a letter from Presbyterian Homes CFO Mark Meyer. He noted in that letter, Presbyterian Homes claimed they wanted to assure the residents there was no major remodeling or construction. He added that in a later meeting they said it again. He stated the neighbors were concerned about an increase in capacity. He noted they did not challenge the merger of the land. He added his concern that Presbyterian Homes was asking for money in Arden Hills. He asked if it was absolutely guaranteed that Presbyterian Homes would perform certain predetermined stipulations. Mayor Probst stated he did not believe the residents needed to be concerned. Mr. Mark Meyer stated the improvements in this financing have already been completed. He noted the improvements were paid for from operating costs and this was the refinancing. He added the summons related to a financing in 1995. He stated this related to replacing a chiller and doing some cosmetic changes. Mr. Fenlon stated 10% of this bond issue refers to Arden Hills. He noted of that $430,000 of it was for heating and ventilation. He added the remaining $90,000 related to repair type work. He stated the company had to comply with the public notice.