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Home My WebLink About6A, Resolution 2009-014 Health Care & Housing Revenue Bonds ~ ~ILLS Request for Council Action Prepared By: Sue Iverson, Finance Director Council Meeting Date: June 8, 2009 Motion to approve Resolution 2009-014, a resolution giving host approval to the issuance of Health Care and Housing Revenue Bonds under Minnesota Statutes, Chapter 462c and Minnesota Statutes, Sections 469.152 through 469.1651 issued through the City of Roseville. Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Recommendation: 1. Motion to approve Resolution 2009-014, a resolution giving host approval to the issuance of Health Care and Housing Revenue Bonds under Minnesota Statutes, Chapter 462c and Minnesota Statutes, Sections 469.152 through 469.1651 issued through the City of Roseville. SUDDortin!! Documents: 1. See the attached memo from Sue Iverson dated May 8,2009. 2. Resolution 2009-014. ~ ~HILLS MEMORANDUM DATE: June 2, 2009 TO: Honorable Mayor and City Council Ron Moorse, City Administrator FROM: Sue Iverson, Finance Director 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: On May 11, 2009, the City Council passed a resolution calling for a public hearing on 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. After the public hearing, the City Council will be asked approve a resolution giving host approval to the Issuance. Staff Recommendation: Staff recommends Council approve Resolution 2009-014, a resolution giving host approval to the issuance of Health Care and Housing Revenue Bonds under Minnesota Statutes, Chapter 462c and Minnesota Statutes, Sections 469.152 through 469.1651 issued through 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, June 8, 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. 2009-014 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF HEALTH CARE AND HOUSING REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C AND MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.1651 The motion for the adoption of the foregoing resolution was duly seconded by member , and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 2345557v2 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF HEALTH CARE AND HOUSING REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C AND MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.1651 BE IT RESOLVED, by the City Council (the "Council") of the City of Arden Hills, Minnesota (the "City") as follows: Section 1. General Recitals. (a) The purpose of Minnesota Statutes, Chapter 462C (the "Housing Program Act"), is among other things, to confer upon cities the power to issue revenue bonds to finance multifamily housing developments; and (b) The purpose of Minnesota Statutes, Sections 469.152 through 469.1651 as amended, relating to municipal industrial development (the "Industrial Development Act" and together with the Housing Program Act, the "Acts"), is among other things, to confer upon municipalities the power to issue revenue bonds for 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. Section 2. Description of the Proiect. (a) EagleCrest Senior Housing, LLC, a Minnesota limited liability company (the "Borrower") has proposed that the City of Roseville, Minnesota ("Roseville" or the "Issuer") undertake a program to finance a project (as defined below), a portion of which is located in the City through the issuance of approximately $23,500,00 of revenue bonds or other obligations, in one or more series (the "Bonds") pursuant to the Acts; and (b) The project consists of refinancing, on behalf of the Borrower, (i) the Issuer's outstanding Senior Housing Refunding Revenue Bonds (EagleCrest Project), Series 2007 which were issued to refinance the acquisition, construction and equipping of a multifamily rental hO\lsing 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 "EagleCrest Facility"); (ii) financing capital improvements to the EagleCrest Facility (collectively, the "Roseville Portion"); and (iii) the outstanding taxable debt of the Borrower or its affiliate, Presbyterian Homes of Arden Hills, Inc. 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"). (c) The City has been advised that the Bonds or other obligations, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City or the Issuer, except the Project and the revenues to be derived from the Project or other financed facilities. Such Bonds or obligations will not be a charge against the general credit or taxing powers of the City or the Issuer, but is payable from sums to be paid by the Borrower pursuant to a revenue agreement. 2345557v2 2 Section 3. Recital of Representations Made by the Borrower. (a) The Borrower has agreed to pay any and all costs incurred by the City in connection with the issuance of the Bonds, whether or not such issuance is carried to completion. (b) The Borrower has represented to the City that no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. Section 4. Public Hearing. (a) As required by the Acts and Section 147(f) of the Code a Notice of Public Hearing was published in the City's official newspaper and newspaper of general circulation, for a public hearing on the proposed issuance of the Bonds and the proposal to undertake and finance the Proj ect. (b) As required by the Acts and Section 147(f) of the Code the City Council has on this same date held a public hearing on the issuance of the Bonds and the proposal to undertake and finance the portion of the Project located within the jurisdictional limits of the City, at which all those appearing who desired to speak were heard and written comments were accepted. Section 5. Host Approval. The City Council hereby gives the host approval required under Section 147(f) of the Code and, pursuant to Minnesota Statutes 9471.656, Subd. 2(2), the City Council hereby consents to the issuance of the Bonds. Stanley Harpstead, Mayor ATTEST: Ronald J. Moorse, Administrator 2345557v2 3 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF ARDEN HILLS I, the undersigned, being the duly qualified and acting Administrator of the City of 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 of said City duly called and held on the date therein indicated, insofar as such minutes relate to granting host approval to the issuance of revenue bonds for a project in the City. WITNESS my hand this _ day of June, 2009. Ronald J. Moorse, Administrator 2345557v2 4