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REQUEST FOR COUNCIL ACTION Date:4/27/2020 Item No.: 7.b Department Approval City Manager Approval Item Description:Public Hearing to Consider Adopting a Resolution ProvidingHost Approval of Tax-exempt Funds for Presbyterian Homes. 1 B ACKGROUND 2 Under Federal and State Statutes, municipalities are authorized to pledge their bond issuance authority to 3 non-profit groups for the benefit of multi-family and assisted-living housing facilities, including 4 corporate offices of said groups. If a municipality expects to issue or receive tax-exempt bond proceeds, 5 either directly or indirectly through a separate entity, it’srequiredby federal law to hold a public hearing 6 and formally approve the use of tax-exempt monies in the City. 7 8 The purpose of the public hearing is to allow for public comment on the proceeds to be expended. No 9 special action is required by Council at the hearing. The process entails openinga public hearing, allowing 10 for public comment (if any), and closing the public hearing. 11 12 Presbyterian Homes proposed to finance the costs of the acquisition, construction and equipping of an 13 approximately 83-unit independent living senior housing facility and refinance the acquisition, 14 construction, and equipping of a 50-unit replacement skilled nursing facility (the”2018 Project”) known 15 as Langton Shores, located at 1910 County Road D in the City of Roseville, Minnesota. The facility will 16 be owned and operated by Presbyterian Homes. The maximum estimated principal amount of the bonds 17 to be issued to finance the Project is $50,000,000. 18 19 The City of Little Canada has been selected by Presbyterian Homes to issue the bonds and these bonds 20 are issued under a different statute which results in the need for a joint powers agreement between the 21 Cities of Little Canada and Roseville in order for the bonds to be issued. 22 P OLICY O BJECTIVE 23 Generally speaking, the public policy reason for City participation in these financings is to promote 24 greater investment in the City’s multi-family and assisted-living facilities than would otherwise occur by 25 market forcesalone.Allowing the bonds to be issued tax-exempt makes the bonds more attractive to 26 investors and results in lower borrowing costs compared to traditional financing methods. This in turn, 27 provides more available dollars for the proposed project. The City has consistently been approving these 28 requests for decades. 29 F INANCIAL I MPACTS 30 Not applicable. Page 1 of 2