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<br />ARDEN HILLS CITY COUNCIL - AUGUST] 3,2001 <br /> <br />- rd~ f:./T' <br />~..' .;,,~ ~'-\..:r~ g <br /> <br />2 <br /> <br />UNFINISHED AND NEW BUSINESS <br /> <br />. <br /> <br />A. Briggs & Morgan, Presbyterian Homes Bond Issue <br /> <br />Mr. Lynch explained that he was contacted by Briggs and Morgan in anticipation of an attempt <br />to have the City of Arden Hills be the issuing city for a bond issue for Presbyterian Homes. He <br />stated the bonds would be used for capital improvements for their Arden Hills facility and their <br />Bloomington facility. <br /> <br />Mr. Mark Meyer, of Presbyterian Homes, stated they had contemplated a five million-dollar <br />bond issue. He noted most of that amount was spent here in Arden Hills. He added another $1.5 <br />million would pay themselves back for the cooperative unit in Bloomington. He stated they are <br />attempting to restore their cash position. He noted the last $2 million would be for future <br />improvements. He added the banks had qualified the bond. <br /> <br />Mr. Lynch stated the bank qualification was because the city has historically issued less than $10 <br />million in debt annually. He noted this does count against the city's ability to issue debt for that <br />year. He added the city had not issued that much in a single year. <br /> <br />Ms. Jenny Grain, of Briggs & Morgan, stated the only concern would be if the expectation would <br />be that the city would be going to issue more than $10 million in bonds in one year. <br /> <br />Mr. Lynch stated this would be risk free and cost free. He noted Presbyterian Homes would <br />agree to pay the legal and bond counsel costs. He added it did not affect the city's debt rating or <br />credit. He stated it was not backed by the full faith and credit of the City of Arden Hill. He <br />noted they would still need to hold a public hearing, and follow the normal procedures so there <br />would be a time commitment. <br /> <br />. <br /> <br />Councilmember Grant asked about the advantages for Presbyterian Homes. Mr. Meyer <br />responded this allows the bonds to be issued on a tax-exempt basis, so they had a lower interest <br />rate. <br /> <br />Councilmember Rem stated they did this in 1999 so there should be documentation and <br />explanations available. <br /> <br />Ms. Grain stated they should have a bond transcript. <br /> <br />Mr. Meyer stated they did a $25 million bond issue in 1999. He noted there had been two such <br />issues since he had been with the company. <br /> <br />Mr. Lynch stated the city was already a bank-qualified community. He noted this matter was <br />brought before the Council to determine if the Council was interested enough to set the public <br />hearing to decide this issue. <br /> <br />. <br />