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HomeMy WebLinkAbout1C, Presbyterian Homes ~ ~HILLS Request for Council Action Prepared By: Ron Moorse . Council Meeting Date: July 21, 2008 Presbyterian Homes Request for Tax Exempt Financing Budgeted Amount: NA Actual Amount: NA Funding Source: NA Recommendation: Consider the issuance of tax exempt bonds. Supporting Documents: 1. Memorandum dated July 17, 2008 from City Administrator Ron Moorse ~ DEN HILLS MEMORANDUM DATE: July 17, 2008 TO: Mayor and City Council Ron Moorse, City Administrator , tA-; Presbyterian Homes Request for Tax Exempt Financing FROM: SUBJECT: BACKGROUND/DISCUSSION Presbyterian Homes is requesting the City issue tax exempt bonds to provide lower interest financing for a set ofprojects. Steve Fenlon, ofMHC, has been engaged by Presbyterian Homes to arrange the financing. Mr. Fenlon has not provided information regarding the details of the bond issue. He will attend the work session. Stacie K vilvang, the City's financial consultant, has recommended that the City collect a fee for this transaction equal to one percent of the par value of the bonds, and that the applicant pay all expenses incurred by the City in relation to the transaction. (The City's expenses relate to the review of the bond issue documents by the City's bond counsel.) There had been an unresolved agreement between the City and Presbyterian Homes related to the lift station that serves Presbyterian Homes. The agreement has now been worked out, and Presbyterian Homes has signed the agreement. The agreement is attached. \\Metro-inet\ardenhills\Admin\City Administrator\General documents\RCA's\Pres Homes tax ex financing 7-17-08.doc "1 > "1 C ::\D~JCtHl:ltlltS Hnd .',"", ~.L 4,. 54 64 ry l ~ 8~ <::)':I:f'.-i:'\.Jl:I:)':I~~:N' -:J,:I:.-I:ljl,;S '1;:).I~.:I?:S.I':)"\r(:r:I~:.':I:l.:I:i\.:N'.'-.:.I":Il:IJ.N?oI:.:.IB.,S. -()'.:I? --.l\_.:I~...I:):I:~~N' - -:.I:':I::J:::I::,J-.l~:S:,_ . :I::N<:':;'. 1-. - '::.. ,:: :)i~:l.l)l,,- (l:f~<- -Sj~.l.<J.l~