HomeMy WebLinkAbout2010-060�RZEN HILLS
CITY OF ARDEN HILLS,
MINNESOTA
RESOLUTION NO. 2010-060
RESOLUTION APPROVING THE ISSUANCE OF REVENUE
REFUNDING BONDS BY THE CITY OF BLOOMINGTON,
MINNESOTA UNDER MINNESOTA STATUTES, SECTIONS
469.152 THROUGH 469.1651 AND THE ISSUANCE OF
REVENUE REFUNDING BONDS BY THE CITY OF LITTLE
CANADA, MINNESOTA UNDER MINNESOTA STATUTES,
CHAPTER 462C TO REDEEM AND PREPAY REVENUE BONDS
ISSUED BY THE CITY OF ARDEN HILLS
BE IT RESOLVED by the City Council (the "Council of the City of Arden Hills, Minnesota
"Arden Hills as follows:
WHEREAS, Minnesota Statutes, Sections 469.152 through 469.1651, as amended (the "Municipal
Development Act authorizes municipalities to issue revenue obligations to finance, in whole or in part,
the costs of the acquisition, construction, reconstruction, improvement, betterment, or extension of a
project and any related public improvements. A "project" includes any properties, real or personal, used
or useful in connection with a revenue producing enterprise, whether or not operated for profit, engaged
in providing health care services, including hospitals, nursing homes, and related medical facilities; and
WHEREAS, Minnesota Statutes, Chapter 462C, as amended (the "Housing Act authorizes
municipalities to issue and sell revenue bonds and lend the proceeds thereof to an organization described
in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code for the purpose of
providing financing for the acquisition of multifamily housing developments authorized thereby;
WHEREAS, at the request of Presbyterian Homes of Arden Hills, Inc., a Minnesota nonprofit
corporation, Arden Hills previously issued its Health Care and Housing Revenue Refunding Bonds,
Series 1999A, on September 30, 1999, in the original aggregate principal amount of $18,605,000 (the
"Series 1999A Bonds and
WHEREAS, the proceeds of the Series 1999A Bonds were used to (i) refinance The Gardens,
also known as Bloomington Commons, an 86 -unit assisted living facility (the "Gardens Project located
at 10030 Newton Avenue South in the City of Bloomington, Minnesota "Bloomington and
(ii) refinance The Mayfield, a 93 -unit elderly independent living facility (the "Mayfield Project located
at 2850 Market Place Drive in the City of Little Canada, Minnesota "Little Canada and
WHEREAS, Gideon Pond Commons, LLC, a Minnesota nonprofit limited liability company, the
sole member of which is Presbyterian Homes Bloomington Care Center, Inc. (the "Borrower has
requested that Bloomington issue its Senior Housing Refunding Revenue Bonds (Gideon Pond Commons,
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LLC Project), Series 2010 (the "Bloomington Bonds in one or more series, in the original aggregate
principal amount of up to $19,000,000; and
WHEREAS, the proceeds of the Bloomington Bonds are proposed to be used to refund all or a
portion of various bond issues, including: (i) the Series 1999A Bonds (excluding the portion of the Series
1999A Bonds used to refinance the Mayfield Project); and (ii) the Variable Rate Demand Health Care
Revenue Refunding Bonds (Presbyterian Homes Care Centers, Inc. Project), Series 2002, issued by the
City of Roseville, Minnesota "Roseville on September 26, 2002, in the original aggregate principal
amount of $8,950,000, the proceeds of which were used to (a) refund the outstanding principal balance of
the Housing and Health Care Facilities Revenue Refunding Bonds (Presbyterian Homes Care Centers,
Inc. Project), Series 1997, issued by Roseville in the original aggregate principal amount of $8,525,000,
the proceeds of which were used to pay for renovations to a 143 -bed skilled nursing facility located at
1910 County Road D in Roseville, and (b) make capital improvements to said 143 -bed skilled nursing
facility; and
WHEREAS, PHS/Mayfield, LLC, a Minnesota nonprofit limited liability company, the sole
member of which is Presbyterian Homes Housing and Assisted Living, Inc., has requested that Little
Canada issue its Senior Housing Revenue Refunding Bonds PHS/Mayfield, LLC Project), Series 2010
(the "Little Canada Bonds in one or more series, in the original aggregate principal amount of up to
$6,000,000; and
WHEREAS, the proceeds of the Little Canada Bonds are proposed to be used to refund the
portion of the Series 1999A Bonds that refinanced the Mayfield Project; and
WHEREAS, pursuant to Section 469.155, subd. 12 of the Municipal Development Act, a
municipality may issue revenue bonds under the Municipal Development Act to refund, in whole or in
part, bonds previously issued by any other municipality on behalf of an organization described in section
501(c)(3) of the Code, but only with the consent of the original issuer of such bonds; and
WHEREAS, pursuant to Section 462C.07 of the Housing Act and Minnesota Statutes, Section
462A.08, a municipality may issue revenue bonds under the Housing Act to refund, in whole or in part,
bonds previously issued by any other municipality, but only with the consent of the original issuer of such
bonds; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARDEN
HILLS, MINNESOTA:
1. The issuance of the Bloomington Bonds by Bloomington pursuant to the Municipal
Development Act for the purpose of redeeming and prepaying a portion of the Series 1999A Bonds issued
by Arden Hills is hereby approved.
2. The issuance of the Little Canada Bonds by Little Canada pursuant to the Housing Act
for the purpose of redeeming and prepaying a portion of the Series 1999A Bonds issued by Arden Hills is
hereby approved.
3. The Bloomington Bonds will constitute a revenue obligation secured solely by the
security pledged by the Borrower, including a mortgage on and the revenues derived from the operation
of, one of the projects refinanced with the proceeds of the Bloomington Bonds, revenues derived from the
operation of another project owned by the Borrower, and other security provided by the Borrower. The
Bloomington Bonds will not constitute a general or moral obligation of Bloomington or Arden Hills, or
be secured by any taxing power of Bloomington or Arden Hills.
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4. The Little Canada Bonds will constitute a revenue obligation secured solely by the
projects refinanced with the proceeds of the Little Canada Bonds, revenues derived from the operation of
said projects, and other security provided by the Borrower. The Little Canada Bonds will not constitute a
general or moral obligation of Little Canada or Arden Hills, or be secured by any taxing power of Little
Canada or Arden Hills.
5. The Borrower will, upon demand, reimburse Arden Hills for costs paid or incurred by
Arden Hills in connection with this resolution.
Adopted by the City Council of the City of Arden Hills on this 15th of Novembtr, 2010.
Attest:
Patrick Klaers, City Administrator /Clerk
an Harpste
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