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Home My WebLink About76-060, _ : STATE OF MiNNESOTA _ COUNTY OF RAMSEY _ : C I TY _OF ARDEN W;I� LLS - 'Resolution No.76-60 _ , '� . �� RESOLUTION REC�TING A PROPOSAL FOR A �� -� MEDICAL-NURSING CARE DEVELOPMENT PROJECT AND - GIVING PRELTMINARY APPROVAL TO THE PROJECT PURSUANT TO MINNESOTA STATUTES AND AUTHORIZING THE SUBMTSSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT T0 THE COMMISSIONER OF ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA AND : AUTHORIZING THE PREPARA^1ION OF NECESSARY� ` DOCUMENTS AND RELATED MATTERS IN CONNECTION WITH SAID PROJECT : WHEREAS, �� , _ _ (a) The request of The Presbyterian Homes of � Minnesota Inc. a Minnesota non r , , p ofit corporation (here- � after "Homes") for assistance in financing i'cs expansion pro.gram i (hereafter "Project") warrants the support of the City of.Arden ` Hi11s, because (i) the reduction of costs to the Hoines, at no cost to the City, will allow the reduction of inedical and , nursing care costs in the facility and to area residents;: : ' (ii) the City has an interest in delivery of health care ser- � vices to area residents at'as 1ow a cost as possible; (iii) � the proposed outpatient facilities wi11 be oi' special bene- : fit to area residents; (iv) additional job opportunities will. be generated by the Project; (v) the Homes has been grantedthe necessary certificate of need by required authorities; (vi) : financing of other health care projects in the Twin'City area has long been accommodated by'municipalities in the met�o= �-� ,.politan area, one example being f�he financing of-the new � Unit.� d Hospital � s and Children T s Hospital facilities in Saint • Paul'; (vii) the Project is undertaken by a nonprofit corpor- � ation and (viii) poxtions of the:Project are supported by ; contributions by Bush Foundation and others. (b ) The ` purpose of Chapter �47�t, Minnesota Statutes, known as the Minnesota Municipal Industrial Develop- ��,� ment Act (hereinafter called "Act") as found and determined by the legislature is to promote the welfare of the state by the ! -active attraction, encouragement and development of economically � sound development proposals. . . . . . _ .. . . - _. . _ . . . . .. - _ . . . .. . � :., d � � - .. . � � .. � .. . . .. . . � �.. . (c) The City Council has received fr��m Homes a proposal, which proposal is outlined in a letter, <� copy o#' : which is attached hereto as Exhibit A,that the City ,�.ssist:in , the financing of the Project through the issuance of a Revenue Bond,which may be in the form of a note�pursuant.to the Act. �, ,(. � 1 �(d) The City of Arden Hills desires to facili- '� \�: tate the selective development of the community and to help -� it provide the range of services and employment opportunities required by its population and said Projec� will assist the City in aehieving that objective. . (e) The Homes is:currently engaged in opera�ing a nursing home facility for the elderly. The Project to be finariced by the proposed Revenue Bond is a nursing home:and outpatient facility for the elderly and consists of the acqui,- sition of land and existing facilities, the remodelin.g thereof and construction of additio.ns thereto, and will result in the employment of approx3mately 175 additi'ona.l persons to work 'within the facilities. - i (f) The City has been advised by represent�.- , tives of the Homes that (i) Homes has its own financial equity capital sufficient to meet the standard financing requirements . for equity capital, (ii�:that conventional, cominercial financ- IE ing to pay the capita1 cost of under�aking the Projec'c is available only at such costs of borrowing that the economic. feasibility of undertaking the Project would be reduced, but Homes has also advised this Council that with the aid of � municipal financing, and its resulting low borrow�ng cost, tYie � Proj ect i,s` economically enhanced. (g) Juran & Moody, Tnc., Investment Bankers, Saint Paul, Minnesota, has advised that on the basis of in- formation submit'ced to them, their discussions with repre-- sentatives of the Homes, and discussions with financial insti- tutions�interested zn buying the Revenue Bond, such bond could ' i,n their opinion be issued and sold upon #'avorable rates and terms in the amount required. -- - -� NOW, THEREFORE, BE TT RESOLVED by the City Council, • of the Ci.ty of Arden Hi11s, ,Minneso'ca, as follows : ; : � l. The'Council hereby gives preliminary approval to the proposal of the Homes that the City undertake to assist � in financing the Project pursuant to Chapter 47�4, Minnesota � Statutes, consisting of the acquisition, canstruction and �_, in.stallation of facilities within the City pursuant to HomesT ` specifications suitable f'or the operations described above, -2- a to be financed by the City pursuant to a loan agreement secured by a mortgage on al1 of:the Hom�st property comgrising the proj�ct anc� adjacent to i�, upon such terrris and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due; �he _ principal of and interest on the proposed Revenue Bond of the Ci'�y in the total principal amount of approximately �4,000,000 '� �` to be issued to finance in part the acquisition, construction \ :and installation of-said Project, and the City hereby under-� takes preliminarily to issue its Revenue Bond in accordance: with_such terms and conditions. 2. On the basis of information available to this Council it:appears, and the Council hereby finds, that said Project constitutes property used or useful in connectian ; with one or more revenue producing enterprises engaged in � any business within the.meaning of Subdivision.l(a) of Sec- tion 474.D2 of the Minnesota Statutes, that the availability .: of the financing urider the Act and willingness of the City �a furnish such financing wi11 be of substantial benefit ta 'che - Homes in completing the Project, and that the effect of the f Project, if undertaken, will be to effect substantial:cost � savings in the delivery of heal�h care and nursing services - ta the`elderly, wi11 encourage economically sound deveiopment, ' will help to provzde the range of services, including medical � nursing home and outpatient services for the elderly, and � employmen� opportunities required by the population of Arden i Hi11s, and will help to prevent the rnovement of talented and educated persons out o�' the state and to areas within the state where their services may nat be as effectively used. i - : i3. Said Pro j ect is hereby given prelimi,nar� ap-- �I proval by the City.subject to the approval.of the Pro�ject by the Cammissioner of Economic DeVelopment and subject to final � _ appraval by th�.s Council and �he Homes of the Bond to be issued � and as to the ultima�e detai,ls of_financing the Project. I _ , , 4. In accordance with Subdivision 7 of Section ` � 474.O1, Minnesota Statutes, the Mayor of the Ci.ty is h�ret��t� � authorized and directed to submit the proposal for the above i' `descri.bed Project to the Commissioner oi Economi.c Development � ' requesting his approval, and other officers,`employees and � agents of the City are hereby authorized to provide the Com- ' missioner with such preliminary information as he may require. Homes has agreed and it i.s hereby determined,that any and al1 `cost incurred by the City in connection with the Project, whether or not the Project is carried to completion and �{, whether or not approved by the Commissioner,, will be paid by the Homes. : . i _3� , 5. Briggs and Morgan, Profess�anal Associa�ian, the City's bond counsel, is au�horized in consultation with : the City's Fiscal Consultant and.Attorney and any other neces- i sary parties to assist in the preparation and review of' � necessary docume�ts relating to the Project, and to consult with the Homes ar�d the purch�aser of the Rev�nue Bond as ta ��; the maturities, interest rates and other terms and provisions . of the bond and the covenants and other provisions of the '�. � ,`�,__ necessary documents and to"submit such docu.ments to the Council- ` for final approval. I : 6. Nothing in this resolution or in iche documents prepared pursuant hereto shall authorize tre expenditure of any municipal funds on the Project other t'r_an �he revenues ' thereof or the proceeds of the Revenue Bon� or other funds -granted:to the City for this purpose. T'ne bond shall not can- stitute a charge, lien or encumbrance,_1eg�,l cr equitable, upon any property or funds of the City exce�t the Project and the revenue pledged to the payment thereof nor`sha11 the City be subject to any liability thereon. The �ondholder shall : never have the r3ght to compel any exercise of the taxing I `power of the City to pay the bond or:the irterest thereon, nor ta enforce payment thereof again.st any.property of the : City except 'che Proj ec�. The bond shall recite in substance that the bond, including interest thereon, is �ayable solely G from the revenue pledged to the payment thereof. No bond � issued hereunder shall constitute a debt oi �h� City within ' - the meaning of any consitutional or statutery Iimi�ation. 7. Zn anticipation of the'approval by the Com- �, missioner of Economic Development and the issuance of the Revenue Bond to finance a portion of the Projec�, and in order that completion af the;Project wi11 ro� be unduly de- layed when approved, the Homes is hereby autnorized 'co make such expenditures and advances toward paymen� of that portion '� :of the costs of the Project to be financed from the proceeds : � of-the Revenue Bond as the Homes considers necessary, in- cluding the use of interim, short-term financ�ng, subject to - reimbursement from the proceeds of the Revenue Bond wh�n_.__,�_� delivered bu� otherwise without liability on the'part of :the j City. ' ( , , ,_, f _ i -4- f � , � Adopted by the CitS Council of the City of Arden Hi11s, i`Zinnesota this �;th �lay of November , 1976. . r f _ +�} ! �{ . � �� Attest : ��. ��•Cv..c�`�;,��1° City Clerk �� , � - STATE OF MINNESOTA COUNTY OF RAMSEY ; �:� , CITY OF ARDEN HILLS \ /i' ,__. , I, the undersigned, being the duly qualified and acting�.Clerk of the City of Arden Hills, M�nnesota, DO HERE-. , : BY CERTIFY that T have compared,the attached and f'oregoing ;- extract of minutes:with the original thereof on file in my� � office, and that the same is a full, true'and com�le�e � ' transcript of the minutes of a meeting of:�he City Council � of said City duly called and held on the dat� therein ,I : �� indicated, insofar as such minutes relate to a resolution giving preliminary approval to a commercia� development project. : WITNESS my hand and the seal of:said City Uhis , 9fih day of November , 1976• ; '�� - i : _ , < � City Clerk : (SEAL) � '� : � i I _6- �, : , : . � , ,