Laserfiche WebLink
<br />REQUEST FOR COUNCIL ACTION <br /> <br />DATE: 7-23-90 <br />ITEM NO.: C,- q <br /> <br />Depart~val: <br /> <br /> <br /> <br />Item Description: <br /> <br />Manager Reviewed: <br /> <br />Agenda section: <br /> <br />~ <br /> <br />Hearing <br /> <br />Resolution giving preliminary approval to a <br />project on behalf of the long term care <br />foundation and its financing under the <br />Minnesota Municipal Industrial Development <br />Act. Referring the proposal of the Minnesota <br />Department of Trade and Economic Development <br />for approval and authorizing the preparation <br />of necessary documents. <br /> <br />The Long Term Care Foundation, a non-profit organization, is <br />requesting that the city of Roseville approve a preliminary <br />resolution for tax exempt bonds to facilitate the purchase of <br />Lakeridge Nursing Home. The foundation is proposing to buy 18 of <br />the nursing homes currently owned by the Beverly corporation. This <br />includes a number of facilities in Minneapolis and twelve other <br />metropolitan communities. The purchase of all facilities totals <br />$42.9 million. The Long Term Care Foundation will subsequently be <br />contracting with Health Dimensions for the management of the <br />facility. The bond issue will flow through the City of Minneapolis <br />through the use of a joint powers agreement with the 12 other <br />ci ties. This expedi tes the bond issue and creates substantial <br />efficiencies with respect to the documentation and required paper <br />work. The allocation for the Roseville Lakeridge Care Center is <br />$8,125,000. This is a revenue bond and thus, it does not obligate <br />the full faith and credit of Roseville plus Minneapolis is actually <br />the issuer of the bonds. In addition, the foundation is willing to <br />provide the City a payment in lieu of taxes based on the fact that <br />it is a non-profit organization and would not have any property tax <br />liability. (A letter from Health Dimensions is attached explaining <br />the bond issue in more detail). <br /> <br />The staff recommends that the Council proceed with this bond issue <br />based on the following rationale: <br /> <br />1. Minneapolis is the issuer and the bonding does not commit the <br />full faith and credit of the city of Roseville. <br /> <br />2. The City will receive its 1% transaction fee. <br /> <br />3. The City will receive payment in lieu of taxes. <br />