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REQUEST FOR COUNCIL ACTION <br /> Date: 09/10/12 <br /> Item No.: 7.e <br />Department Approval City Manager Approval <br />Item Description: Adopt a Resolution to Amend the 2006 Healthcare Facilities Revenue Note for <br />Wingspan Life Resources. <br />B <br />ACKGROUND <br />1 <br />On June 12, 2006, the City of Roseville issued conduit debt in the form of a Healthcare Facilities Revenue <br />2 <br />Note to Wingspan Life Resources, a Minnesota nonprofit corporation, to finance a portion of the costs of <br />3 <br />equipping a 4-bed healthcare facility at 2949 Woodbridge Street in Roseville along with similar facilities in <br />4 <br />other cities. <br />5 <br />6 <br />The Note was issued on behalf of Wingspan (the borrower) in conjunction with Anchor Bank (the lender). <br />7 <br />Wingspan and Anchor Bank have agreed to amend the terms of that Note, but they need the consent of the <br />8 <br />City, as the original issuer, in order to proceed. <br />9 <br />10 <br />The Note does not constitute a legal or moral obligation on the part of the City. The City is simply serving <br />11 <br />as a conduit between the borrower (Wingspan) and the lender (Anchor Bank). <br />12 <br />PO <br />OLICYBJECTIVE <br />13 <br />Generally speaking, the public policy reason for City participation in these financings is to promote greater <br />14 <br />investment in the City’s multi-family and assisted-living facilities than would otherwise occur by market <br />15 <br />factors alone. Allowing the bonds to be issued tax-exempt makes the bonds more attractive to investors and <br />16 <br />results in lower borrowing costs compared to traditional financing methods. This in turn, provides more <br />17 <br />available dollars for the proposed project <br />18 <br />FI <br />INANCIALMPACTS <br />19 <br />Not applicable. <br />20 <br />SR <br />TAFF ECOMMENDATION <br />21 <br />Staff recommends the Council adopt the attached resolution amending the 2006 Healthcare Facilities <br />22 <br />Revenue Note for Wingspan Life Resources, along with related documents. <br />23 <br />24 <br />Page 1 of 2 <br /> <br />