CCP 06-28-1999 - Laserfiche WebLink

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. j k e . . CITY OF ARDEN HILLS MEMORANDUM DATE: June 25, 1999 Mayor and City Council ru Brian Fritsinger, City Administrato~ Presbyterian Homes Bond Sale TO: FROM: SUBJECT: Back!!round At its May 24, 1999 meeting, the Arden Hills City Council scheduled a public hearing for June 28,1999, to consider the issuance of Health Care Revenue Bonds. This hearing was scheduled at the request of Presbyterian Homes. What is the amount of the bonds bein!!: considered? The total amount of the bonds being proposed is not expected to exceed $30,000,000. Where will these bond proceeds be utilized? The project to be financed by the bonds consists of the refinancing, acquisition, construction or renovation of facilities at several locations. These include facilities in Arden Hills, Little Canada, Spring Park, Bloomington, MN; and Ankeny, IA. Has the City previously been involved in the issuance of bonds on behalf of Presbyterian Homes? The City has, on several occasions, issued bonds on behalf of Presbyterian Homes. The City, in 1991, 1992 and 1995, approved action that permitted the refinancing of an existing Revenue Bond for Presbyterian Homes. These funds were used exclusively at the Arden Hills facility. Is the City obli!!ated to use tax dollars to payoff the bonds. should Presbyterian Homes default? The bond is not a general obligation of the City of Arden Hills, or any of the other cities listed. The bonds are issued, based on the revenues of the project, and are payable from sums to be paid by the developer, pursuant to a revenue agreement. What are the remainin!!: considerations bv the City? The City will be asked to give final approval of the Bond Sale. This will most likely take place in late August. As part of this approval, the City will be executing a variety of documents, including a loan agreement and Joint Powers Agreement.