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<br />. <br /> <br />. <br /> <br />. <br /> <br />ARDEN HILLS CITY COUNCIL - JUNE 28,1999 <br /> <br />2 <br /> <br />issuance is not only for Arden Hills facilities, but also for facilities located in Little Canada, <br />Spring Park, Bloomington, Minnesota; and Ankeny, Iowa. <br /> <br />The revenue bonds being proposed are authorized by State of Minnesota Statutes 462, which <br />deals with municipal housing programs, and 469, which deals with industrial development <br />bonds. Under this progranl, the cities are used as a conduit for the financing mechanism used for <br />the improvements. This relates back to the State's intention that local governments help where <br />they can with various nursing home and health care facilities, which are needed for citizens <br />throughout the State. <br /> <br />The City of Arden Hills will be asked to give final approval of the Bond Sale. This will most <br />likely take place in late August. As part of this approval, the City will be executing a variety of <br />documents including a loan agreement and Joint Powers Agreement, for the facility in Iowa. <br /> <br />The bond is not a general obligation of the City of Arden Hills, or any of the other cities listed. <br />The bonds are issued, based on the revenues of the project, and are payable trom sums to be paid <br />by the developer, pursuant to a revenue agreement. <br /> <br />Mr. Fritsinger advised that the City Council was asked to adopt Resolution #99-19, resolution <br />reciting a proposal for a Housing Finance Program to finance an elderly housing development <br />project, giving preliminary approval to the project and the issuance of Revenue Bonds pursuant <br />to Minnesota Law, and ratifying the preparation of a Housing Finance Program (Presbyterian <br />Homes Obligated Group Project). <br /> <br />Mayor Probst requested confirmation that this bonding would have no effect on the City of <br />Arden Hills' bond indebtedness. Mr. Fritsinger confirmed that this was correct. <br /> <br />Mayor Probst closed the public hearing at 7:35 p.m., as no one wished to address the City <br />Council. <br /> <br />Councilmember Larson noted the staff report had indicated that previously issued bonds were <br />used exclusively at Arden Hills facilities. He asked why, in this case, the Presbyterian Homes <br />did not ask the City for bonds related only to the improvements in Arden Hills and make requests <br />to the other cities for the improvements within their areas. Mr. Fritsinger explained that, due to <br />the size of the refinancing and the issues involved, Presbyterian Homes needed to look at each <br />community to determine how this may affect other bonds that are planned to be issued in those <br />communities. <br /> <br />Mr. Post added that Presbyterian Homes approached the other cities to see if there would be any <br />conflict with other bond issuances planned for this year. There is an upper limit of bank <br />qualified debt of $1 0,000,000 each year. This proposal would have far exceeded this limit. <br />Since the City of Arden Hills was not planning any issuance of debt this year, the City was the <br />logical candidate to issue the bonds. <br /> <br />MOTION: <br /> <br />Councilmember Malone moved and Councilmember Larson seconded a motion to <br />adopt Resolution #99-19, resolution reciting a proposal for a Housing Finance <br />