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Home My WebLink About4F, Resolution 2009-011 Health Care and Housing Refunding Bonds ~ ~HILLS Request for Council Action ~ Prepared By: Sue Iverson, Finance Director Council Meeting Date: May 11, 2009 Motion to approve Resolution 2009-011, a resolution calling for a public hearing on the issuance of Health Care and Housing Refunding Bonds (EagelCrest Project) by the City of Roseville). Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Recommendation: 1. Motion to approve Resolution 2009-011, a resolutio~ calling for a public hearing on the issuance of Health Care and Housing Refunding Bonds (EagleCrest Project) by the City of Roseville. Supportin!! Documents: 1. See the attached memo from Sue Iverson dated May 8, 2009. 2. Resolution 2009-011. ~ ~HlLLS MEMORANDUM DATE: May 8, 2009 TO: Honorable Mayor and City Council Ron Moorse, City Administrator FROM: Sue Iverson, Finance Director ~ J SUBJECT: Public Hearing on Health Care and Housing Revenue Refunding Bonds Background: The City of Roseville has agreed to issue conduit debt for Presbyterian Homes on a refunding of Roseville's outstanding Senior Housing Refunding Revenue Bonds (EagleCrest Project), Series 2007. Because part of the project is located in Arden Hills, a public hearing and City Council approval of the financing is required under Section 146(f) of the Internal Revenue code. Discussion: Attached is a resolution calling for a public hearing on Monday; June 8; 2009, to consider giving host approval to the issuance of revenue bonds by the City of Roseville under Minnesota Statutes, Sections 469.1651 and Minnesota Statutes, Chapter 462C in order to finance the cost of the project located in the City of Arden Hills. All costs will be paid by Presbyterian Homes that are incurred by Arden Hills for this issuance. Steve Bubul, our bond counsel has reviewed and made any necessary changes to this paperwork on our behalf. Actual host city approval will not be acted upon until June 8, 2009 after the public hearing. Staff will bring forward an action item for City Council approval at that time. Staff Recommendation: Staff recommends Council approve Resolution 2009-011, a resolution calling for a public hearing on the issuance of Health Care and Housing Revenue Refunding Bonds (EagleCrest Project) by the City of Roseville. EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Arden Hills, Minnesota, was duly held at the City Hall in said City on Monday, May 11, 2009, commencing at 7:00 P.M. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION NO. 2009-011 RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ISSUANCE OF HEALTH CARE AND HOUSING REVENUE REFUNDING BONDS (EAGLECREST PROJECT) WHEREAS, Minnesota Statutes, Chapter 462C (the "Housing Program Act"), confers upon cities, the power to issue revenue bonds to finance multifamily housing developments; and WHEREAS, Minnesota Statutes, Sections 469.152 through 469.1651, relating to municipal industrial development (the "Industrial Development Act"), gives municipalities the power to issue revenue bonds for the purpose of the encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; and WHEREAS, EagleCrest Senior Housing, LLC, a Minnesota limited liability company (the "Borrower"), has proposed that the City of Roseville, Minnesota ("Roseville") undertake a program to finance a project (as defined below), a portion of which is located in the City of Arden Hills, Minnesota (the "City") through the issuance of approximately $23,500,000 of revenue bonds or other obligations (which may be issued in one or more series) (the "Bonds") pursuant to the Housing Program Act and the Industrial Development Act; and WHEREAS, the "Project" to be financed by the Bonds includes refinancing taxable outstanding debt of the Borrower used to finance improvements to facilities owned or operated by the Borrower which are located in the City and refunding Roseville's outstanding Senior Housing Refunding Revenue Bonds (EagleCrest Project), Series 2007; and 2343675v3 WHEREAS, the City has been advised that, although the City will not issue the Bonds, a public hearing and City Council approval of the financing of the Project is required under Section 147(f) of the Internal Revenue Code because a portion of facilities to be financed or refinanced by the Revenue Note are located in the City; and WHEREAS, the City acknowledges and understands that the Borrower shall reimburse the City for all costs incurred, including reasonable attorney fees, with respect to approval of the Project and the issuance of the Bonds by Roseville; NOW, THEREFORE, BE IT RESOLVED by the City Council (the "Council") of the City of Arden Hills, Minnesota, as follows: 1. A public hearing on the proposal of the Borrower will be held at the time and place set forth in the Notice of Hearing hereto attached as Exhibit A. The general nature of the Project and an estimate of the aggregate principal amount of the Bonds or other obligations to be issued to finance the Project are described in the Notice of Hearing. 2. The Borrower shall cause notice of the hearing to be given one publication in the official newspaper and newspaper of general circulation available in the City, not less than 14 days nor more than 30 days prior to the date fixed for the hearing, substantially in the form of the attached Notice of Hearing. The motion for the adoption of the foregoing resolution was duly seconded by member and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: And the following voted against the same: Whereupon the resolution was declared duly passed and adopted. 2343675v3 2 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF ARDEN HILLS I, the undersigned, being the duly qualified and acting Administrator of the Arden Hills, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to a resolution adopted on the date therein indicated calling a public hearing on the issuance of a revenue bonds for a project to be undertaken by EagleCrest Senior Housing, LLC, a portion of which is located in the City. WITNESS my hand this day of May, 2009. Ron Moorse, City Administrator 2343675v3 3 EXHIBIT A NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF REVENUE OBLIGATIONS TO FINANCE A PROJECT BY EAGLECREST SENIOR HOUSING, LLC Notice is hereby given that the City Council of the City of Arden Hills, Minnesota (the "City"), will meet in the City Council Chambers at the Arden Hills City Hall, in the City, at 7:00 p.m. on Monday, June 8, 2009, to consider giving host approval to the issuance by the City of Roseville, Minnesota (the "Issuer") of revenue bonds (the "Bonds"), in one or more series, under Minnesota Statutes, Sections 469.152 through 469.1651 and Minnesota Statutes, Chapter 462C (the "Acts"), in order to finance the cost of a project located in the City. The project consists of refinancing, on behalf of EagleCrest Senior Housing, LLC, a Minnesota limited liability company, the sole member of which is PHS/EagleCrest, Inc. a Minnesota nonprofit corporation, (the "Borrower"), (i) the Issuer's outstanding Senior Housing Refunding Revenue Bonds (EagleCrest Project), Series 200.7 which were issued to refinance the acquisition, construction and equipping of a multifamily rental housing facility known as EagleCrest, consisting of 127 units of independent living apartments, 91 units of assisted living and 36 units for memory care located at 2925-45 Lincoln Drive North in the City of Roseville (the "Roseville Portion"); and (ii) outstanding taxable debt of the Borrower or its affiliate, Presbyterian Homes of Arden Hills, Inc. (the "Affiliate") used to finance improvements to the common areas, hallways and room conversions to the McKnight Care Center, located at 3220 Lake Johanna Boulevard in the City (the "Arden Hills Portion" and, together with the Roseville Portion, the "Project"). The maximum aggregate estimated principal amount of the Bonds or other obligations to be issued by the Issuer is $23,500,000. The Roseville Portion of the Project is owned and operated by the Borrower and the Arden Hills Portion of the Project is owned and operated by the Affiliate. The Bonds, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City, except the Project and the revenues to be derived from the Project and other financed facilities. Such Bonds will not be a charge against the general credit or taxing powers of the City, but are payable from sums to be paid by the Borrower pursuant to a revenue agreement. At the time and place fixed for the public hearing, the City Council of the City will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. Written comments will be considered if submitted at the above City office on or before the date of the hearing. Dated: May 11, 2009. 2343675v3