4C, Call for Public Hearing for Host Approval for City of Bloomington Senior Housing Refunding Revenue Bonds

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Boulevard in the City. The remaining principal of the Series 2001 Notes in the amount of approximately $3,000,000 will be refunded. Of the remaining principal amount, approximately $250,000 relates to the McKnight Care Center. Presbyterian Homes is refunding the debt on the McKnight Care Center in order to be able to finance the proposed renovations to its Arden Hills campus. Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated pursuant to Section 147(f) of the Code (the "Regulations"), require that tax-exempt private activity bonds must be approved by each governmental unit having jurisdiction over the area in which any facility financed with such tax-exempt bonds is located. The Code and Regulations provide that the tax-exempt bonds may be approved by an applicable elected representative of the governmental unit after a public hearing following reasonable public notice. On November 29, '2010, it is proposed that the City Council Will conduct a public hearing 'regarding the issuance of the Bonds by Bloomington and consider the :attached resolution 'providing host approval for the Bonds: and consent to Bloomington refunding various bond issues financed by Arden..Iiills: In :addition,: the City of Little Canada will be issuing bonds for the benefit of PHSIMayli LLQ, the sole member of which is Presbyterian Hothes.:.H.Otising-and Assisted Living, Inc,. to refinance the portion of the Series 1999A Bonds that financed the Mayfield :Project in Little Canada.: The City will also be requested to consent to the City of:Little Canada issuing bonds to refinance bonds originally issued by the city, No public. hearing is required for this consent. Tf host approval is granted by the City Council of the City, and Bloomington agre to issue the Bonds, the Bond:. will be issued as a revenue -obligation of Bloomington. The Bonds will not be an obligation of the City. The principal of and interest on the Bonds will be payable solely 'from revenues derived from the senior housing facilities refinanced and financed with the procopds of the Bonds. The Bonds will not constitute a general or moral obligotion. ofthe City and will not be secured by the full faith and credit ottaxing powers of the City:. in the event. the Project encounters :financial difficulties, no assets or revenues of the City will be available to pay the principal of or interest on the Bonds. The issuance of the Bonds Will not adversely impact the ability of the .City to issue bank qualified bonds in calendar year 2010. Please contact me if you have any questions regarding the Bonds or this financing. KENNEDY G CHARTERED