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