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<br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br /> <br />...At. <br /> <br />CITY OF ARDEN HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />September 24, 1999 <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />Terranee R. Post, Interim City Administrator~~ <br />'O~ <br />Presbyterian Homes Bond Sale <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br />Request <br />Specifically, the City of Arden Hills will issue and sell a total of$25,766,000 <br />($18,605,000 Health Care and Housing Revenue Refunding Bonds Series 1999A and <br />$7,161,000 Variable Rate Demand Health Care and Housing Revenue Bonds Series <br />1999B) in bonds and loan the proceeds to Presbyterian Homes in order to provide <br />financing with respect to costs of the refinancing, acquisition, construction or renovation <br />by Presbyterian Homes of Arden Hills, Inc, for housing and/or health care facilities. <br /> <br />Backl!:round <br />The City has, on several occasions, worked with Presbyterian Homes to help facilitate the <br />issuance of Revenue Bonds, In 1991, 1992 and 1995, the City approved action that allowed the <br />organization to refinance its outstanding Revenue Bonds, <br /> <br />Arden Hills is being asked to be the host city in terms of the bond issuance by Presbyterian <br />Homes for several reasons, They include; (I) ease and reduced costs of one larger issuance <br />rather then several smaller ones; (2) Arden Hills is not planning any other 1999 debt issuance; <br />and (3) even though the size of the proposed issuance exceeds the $10,000,000 "bank qualified" <br />limit and will not be "bank qualified", it may preserve "bank qualified" debt issuance <br />opportunities in the other communities, <br /> <br />At its May 24, 1999 meeting, the Arden Hills City Council scheduled a public hearing, which <br />was held on June 28, 1999, to consider the issuance of these Health Care Revenue Bonds, Even <br />though the other communities are not issuing revenue bonds for the projects identified, they were <br />required to hold similar public hearings on the bond issuance, United States tax code requires <br />each host city of facilities where the proceeds will be used to approve the bond issuance, <br /> <br />Use of Bond Proceeds <br />The project to be financed by the bonds consists of the refinancing, acquisition, <br />construction or renovation of facilities at several locations, These facilities are located in <br />Arden Hills, Little Canada, Spring Park, Bloomington (all in Minnesota), and Ankeny, <br />Iowa. <br />