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REQUEST FOR COUNCIL ACTION <br />2 <br />3 Date: 5/07/2007 <br />4 Item No: ��e <br />J <br />Department A,pproval: Manager Approved: Agenda Section: <br />� _ <br />r � �, ,� <br />r'� <br />� <br />�a,7s�,�t <br />, _ � <br />F�� Description: Consider Setting a Public Hearing for the Purposes of Issuing Tax-Exempt Refunding <br />11 Bonds for Presbyterian Homes/Eagle Crest Inc. <br />12 <br />13 <br />E= Background <br />I� State Statute provides for the issuance of tax-exempt bonds by municipalities for the benefit of <br />i� housing or long-term care facilities that are deemed to be in the best interest of the City, and in <br />! r which the bond issuance results in no negative fiscal impact. The bonds are considered conduit <br />�� debt and do not constitute a financial obligation in any part by the City. However, the City must <br />�!? still meet all legal requirements prior to issuing any tax-exempt bonds, including holding a <br />'��] public hearing. <br />?l <br />�� <br />�3 <br />�� <br />?.5 <br />�� <br />�7 <br />'�� <br />�rc� <br />�r] <br />�1 <br />�i <br />�� <br />� • <br />�5 <br />3�a <br />�� <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />44 <br />45 <br />Presbyterian Homes has requested that the City provide tax-exempt financing for the purposes of <br />refinancing existing debt for their facility located at 2925-45 Lincoln Drive in Roseville. The <br />36-unit multifamily housing facility provides housing, nursing, food service, and sponsored <br />activities for persons with Alzheimer's. The total amount of refinancing is estimated to be <br />$25,000,000. The City has participated in similar financing arrangements for Presbyterian <br />Homes in 1993, and 1998 for this facility. <br />Discussion Items <br />The City Council is required to approve any issuance of tax-exempt financing by the City. The <br />City's Bond Counsel of Briggs & Morgan, has reviewed the legal and financing agreements, and <br />will provide an unqualified opinion as the legality of the bonds and their tax-exempt status. <br />There is no fiscal impact on the part of the City. All costs of debt issuance will be paid by the <br />applicant. In addition, the City does not intend to issue any direct debt in 2007. As a result, this <br />issuance will not jeopardize the "bank-qualification"Status of any new City debt issues. <br />Attachment <br />Enclosed is a Resolution and Notice setting the public hearing. <br />Staff Recommendation <br />Staff has reviewed the application and believes all necessary legal and financing provisions will <br />be met. Staff recommends the Council set a public hearing to consider the issuance of tax- <br />exempt refunding bonds for Presbyterian HomeslEagle Crest Inc. <br />