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Department Approval: � � �� REQUEST FOR COUNCIL ACTION Date: 512212006 �tem No: 3.k Manager Approved: Agenda Section: �� 'cti]]SGni Item Description: Setting a Public Hearing to Consider the Issuance of Tax-Exempt Conduit Debt for Wingspan Life Resources. Introduction Under MN Statutes, Sections 469.152 through 469.1651, municipalities are authorized to issue revenue bonds on behalf of non-profit agencies for the purposes of providing housing or long- term healthcare facilities. The bonds are considered conduit debt, and do not constitute a financial obligation in any part by the City. �T��c��cr, �; hc �� w must sl�ll meet all legal requirements prior to issuing any tax-exempt bonds. Wingspan Life Resources, a non-profit corporation providing healthcare facilities has requested that the City of Roseville, in conjunction with other municipalities, provide tax-exempt financing for the purposes oi 1) The improvement and equipping of a 4-bed facility located at 2949 Woodbridge Street in Roseville, Minnesota, including related vehicles and furnishings (the "Roseville Project" and together with the Bloomington Project and the Saint Paul Project, the "Project"). 2) The acquisition and equipping of a four-bed facility located at 85 West Congress Street and a six-bed facility located at 2134 Marshall Avenue in Saint Paul, Minnesota, including related vehicles and furnishings (the "Saint Paul Project") 3) Refinancing the acquisition and renovation of a six-bed facility located at 2209 West 91 %z Street in Bloomington, Minnesota, including related vehicles and furnishings (the "Bloomington Project") Discussion Items All of the facilities of the Project will be owned and operated by Wingspan as supervised residential care facilities for developmentally disabled persons. The total amount of conduit financing provided by Roseville is $1,400,000. The City has participated in similar financing arrangements in the past for Wingspan and other non-profit agencies; most recently in 2004. The City Council is required to approve any issuance of tax-exempt financing by the City. The City's Bond Counsel of Briggs & Morgan, has reviewed the legal and financing agreements, and will provide an unqualifiedopinion as the legality of the bonds and their tax-exempt status. There is no fiscal impact on the part of the City. The City will retain 1% of the amount financed �� f rk,t H�I f� i�} offset any legal and staff costs.