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HomeMy WebLinkAbout95-056 . . . - . CITY OF ARDEN HILLS RAMSEY COUNTY RESOLUTION NO. 95-56 A RESOLUTION GIVING APPROVAL TO A MUNICIPAL HOUSING PROGRAM TO PROVIDE FINANCING AND REFINANCING FOR A COMBINATION HEALTH CARE AND SENIOR HOUSING DEVELOPMENT AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE BY THE CITY OF REVENUE BONDS THEREFORE ON BEHALF OF THE PRESBYTERIAN HOMES OF MINNESOTA, INC. OR AN AFFILIATE THEREOF WHEREAS, by the provisions of Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City of Arden Hills (the "City"), is authorized to develop housing programs, including programs for combination health care and senior housing developments, and to issue and sell revenue bonds to finance and refinance such developments, which revenue bonds shall be payable solely from the revenues to be derived in respect of such developments; and WHEREAS, the City has prepared pursuant to the Act a Housing Program, which Housing Program sets forth the information required by Section 462.03, Subd. la, and Section 462C.05, Subd. 6, of the Act, and, in accordance with the applicable provisions of the Act, has submitted the Program for review to the Metropolitan Council; and WHEREAS, The Presbyterian Homes of Minnesota, Inc. a Minnesota nonprofit corporation, or an affiliate thereof (referred to herein in the alternative as the "Corporation"), has proposed pursuant to such Program to refinance, rehabilitate, renovate and acquire and construct improvements to its existing health care and housing facilities in the City, located at 3220 Lake Johanna Boulevard and 3120 Lake Johanna Boulevard, (conunonly known, respectively, as "McKnight Care Center," "Lake View Assisted Living," and "Sutton Place"), and to provide financing therefor through the issuance by the City of its revenue bonds under the Act; and WHEREAS, a more detailed description ofthe facilities to be financed and refinanced under the Program is set forth in the Program and is hereby incorporated herein by reference and made a part hereof (as so described, the "Facilities"); and WHEREAS, under the Program, it is proposed that the City issue its revenue bonds (the "Bonds") pursuant to the Act in such aggregate principal amount as may be necessary to finance costs ofthe refinancing, rehabilitation, renovation and improvement ofthe Facilities, including amounts, if necessary, to fund necessary reserves and for payment, in part, of the costs of issuing the Bonds, subject to agreement by the Corporation to pay promptly when due all principal of, premium, if any, and interest on the Bonds: . . . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota: I. The Housing Program referred to above is hereby approved and adopted by the City and the issuance of the Bonds of the City, in an aggregate principal amount of not to exceed $2,250,000, is hereby preliminarily approved for the purpose of providing financing and refinancing with respect to the Facilities. The Bonds shall not be issued until the City, the Corporation and the purchaser of the Bonds have agreed upon the details of the Bonds and the provisions for their payment. The principal of, premium, if any, and interest on the Bonds, when, as and if issued, shall be payable solely from the revenues to be derived fTOm the Facilities, including loan repayments to be made by the Corporation with respect thereto, and the property pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2. Submission of the Housing Program to the Metropolitan Council, which submission was made prior to publication of the notice of public hearing on the Program and the issuance of the Bonds, is hereby ratified, confirmed and approved. 3. Pursuant to Subdivision 1, Section 462C.07, of the Act, in the making ofa loan to the Corporation with respect to the Program and in the issuance of the Bonds by the City, the City may exercise, within its corporate limits, any of the powers the Minnesota Housing Finance Ageny may exercise under chapter 462A, Minnesota Statutes, without limitation under the provisions of Chapter 475, Minnesota Statutes. 4. The Corporation is hereby authorized to enter into such contracts for the rehabilitation, renovation and improvement of the Facilities as it may reasonably determine to be necessary or desirable, without advertisement for bids as may be required for municipal facilities generally, provided, however, that the City shall not be liable on any of such contracts, and provided further, that the Corporation has agreed to and shall pay any and all costs incurred by the City in connection with the Program and the Facilities whether or not the Bonds are issued. 5. The Bonds are hereby designated as "qualified tax-exempt obligations" within the meaning of Section 265 (b) (3) of the rnternal Revenue code of 1986, as amended. The Bonds are to be issued on behalf of an organization described in Section 50 1 (c) (3) of the Code and are to be issued as "qualified 501 (c) (3) bonds" under Section 145 of the Code. The City, together with all subordinate entities thereof, does not reasonably expect to issue tax-exempt obligations, including the Bonds (other than private activity bonds not constituting "qualified 501 (c) (3) bonds"), which, when added together with all such obligation heretofore issued by the City, or such subordinate entities, in calendar year 1995, will be an aggregate amount exceeding $10,000,000 in calendar year 1995. . . . PASSED AND ADOPTED BY THE CITY COUN IL OF THE CITY OF ARDEN HILLS THIS 14TH DAY OF AUGUST, 1995. /~.. , ,<," ," ,'- ATTEST: ,/" ," ,.."'. .., -,// BRIAN Ffii~G~I6~fy ADMINrSTRATOR