2015 05-19 CC PACKET - Laserfiche WebLink

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.................... Jt:ti.s tarn i;ro• Ihrcct D5,0 j612', 3. 7.020? i; nlsil; jiipullor! rr'kcm,cds-�v;,rcn , un, Ma y 14. '1015 City.o(Oem .Lake, Minnesota 4200 Otter Lake Road Saint Pad[. MN S5110 Attention: Bill Short, City -Administrator -Clerk Tom Kelly. Treasurer R& Proposed issugtice of a conduit revenue financing by the City of Gem take fctr the benefit of St. Andrew's- V'i i Iav Dear BiIf, Tom and CouhciI Members, PSA Housing & Assisted L.ivin . line., a tMitinesota nonprofit ccitpothtioti (the."Borrower"), has requE�ed that the.Cify- of Gem [;ake. ("Gem Lake") issue its Senior. Housing Revenue Refim�ling Note (St. Andrew's Village. Project), Series .2015 (the "Gem Lake. Note*), in a principal amount. not to ekceed $10;000,0.00 (or such lesser amount as may be within Germ Lake'S $10.0000.00 bank qualification limit for2015). In addition to requesting that. Gem Lake issue the Gem Lake Note, the Borrower has proposed that one or more ether issuers in .thin Borrower's service area issue revenue obligations in an aggregate principal amount sutlieicrit, together with the Gem lake Note; to equal:approximately 1.17.000.000 (the " Othor Notes'"). 1!'Gem Lake agrees to issue the Gent Lake Note, the BomAver Nv:iII use the proceeds of the Gem lake Note. Mong with the proceeds of the :Other Notes. to (1) refinance the 1.39-unit senior housing facility, comainilIg 7(). Independent living units, 44 assisted living units; 25 m.emoiy care units. and approximately 10.170 square lcet of daycare space leased to St. Andrew's. Church located at 240 Gast Avenue, its Malitonied.i. Minnesota. 1ty refunding the outtitandititi City of Malitoinedi. Minnesota Senidtr 110tising Revenue. Refunding.Bonds (St. Andrew's Village Project.) Series 2005; H) fiend required reserves for the Notes, .if any, and (iii.) pay the costs of issuing the Notes (collectively, the "Project"). The facilities refinanced with [lie procceds of the Notes evill be owned and operated by the Borrower. i )te Gem lake Note is proposed to be privately placed with Klein Bank (the. "Bank"). If the Gem Lake Note is authorized to be issued by the City -Council it will be. issued as a conduit revenue fond :secured solely by the revenues derived fr.. a 1. . g . eirnent (the ` L.oan Agreement") to be eXCCL led by Gein Lake• and the Borrower and.from. tither security provided by the Borrower.. !1 conduit financing works almost exactly life a bank Ivan for the: Borrower. The Bank provides the funds for the (qan, bcm Lakvwould, tv. a party to the documents but then assign its rights and. obligations to the. Bank. No nioncy actually flows through Genf .Lake; instead, the Bank makes the loan to the`Borrower.ak] 1he.36riower makes loan repayments directly to the Bank. No money or assets of [.;rent Lake would ever be pledged or available to pay the Gem Lake Note. 4.MQ1tivi ftitt NlAlzs:_7