CCP 08-14-1995 - Laserfiche WebLink

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I I CITY OF ARDEN HILLS . MEMORANDUM I I DATE: August 11, 1995 TO: Mayor and City Council I FROM: Brian Fritsinger, City Administrat@ I SUBJECT: Presbyterian Homes - Resolution 95-56 I At its July 10, 1995 Council meeting the Arden Hills City Council scheduled a public hearing for August 14, 1995 to consider the issuance of Health Care Revenue Bonds. This hearing was scheduled at the request of Presbyterian Homes. I The proposed amount of the bond is $2,250,000. The issuance of the Bond would accomplish I several things: 1. Refinance existing outstanding bonds of$619,000. I . 2. Refinance existing line of credit of approximately $500,000. , Improve cash flow of organization by reducing the existing interest rate on debt J. from 8.3% and 9% to 6.5%. I 4. Finance additional site improvements/renovations. As explained at the July 10 meeting, the City in late 1991 and early 1992 approved action which I permitted the refinancing of an existing Revenue Bond for Presbyterian Homes. The funds obtained from this new issuance will be used exclusively in Arden Hills. I The City is not obligated to pay any of the expenses for the issuance of the Bond. The Bond is backed only by the revenue of the project, and the Ci~ would not be responsible for any outstanding debts should a future default occur, Should the Council adopt Resolution 95-56 it is I anticipated that a resolution for final approval will be placed on the August 28, 1995 Council meeting. I Recommendation Staff recommends the adoption of Resolution No, 95-56 giving approval to a municipal housing I program to provide financing and refinancing for a combination health care and senior housing development and giving preliminary approval to the issuance by the City of revenue bonds therefore on behalf of the Presbyterian Homes of Minnesota, Inc. or an affiliate thereof. I I. I