01-12-05 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNC[L JANUARY 12, 2005 TAX- The City Administrator reviewed his memo dated January 7, 2005 EXEMPT' relative to the City's sponsorship of tax exempt f nancing for the FINANCING New Harmony Care Center in St Paul. The City Administrator SPONSORSIIIP- indicated that the reason New Harmony is approaching other NEW communities requesting sponsorship other than St. Paul is due to the HARMONY Federal limitations on the amount ofbank-qualified tax exempt CARE financing a public entity may undertake in a calendar year. The CENTER Administrator pointed out that this sponsorship would not incur any credit obligation a' risk for the City. The benefiC to Little Canada is that this sponsorship would generate a one percent bond issuance fee of $45,000 in addition to having all expenses reimbursed. Trent Carlson, New Harmony Care Center, repotted that their facility is located on Jackson Street off Maryland Avenue. He reported that New Harmony has approximately 110 employees and 72 residents at the current time. "they have been inexistence since 1966. New Harmony served four hospitals in the area. providing rehabilitation care for senior citizens. New IIarma~y also provides hospice care. Carlson indicated that the current building is outdated and needs a face lift. "The sale of these bonds will finance the much-needed renovations. Carlson also pointed out that New Harmony is not privately owned, but rather anon-profit organization that reinvests in its facilities. Allan asked if New Harmony's focus was on short-term care. Carlson reported that it is and noted that they have approximately 200 to 300 discharges per year. Mr. LaValle introduced the following resolution and moved its adoption: RES'O7 U77ON N0. 2005-X-Y9 - ZN.ST RUCTING TFIE CI%'Y ADMINISTRATOR TO PURSUE THE INVESJ'CGATION OF TFIE CIT3"S SPONSURSFIIP OF TAa'-EXEMPT FINANCING FOR NEW HARMON]' CARE CENTF.,'R The foregoing resolution was duly seconded by Allan. Ayes (5) I,aValle, Allan, Blesener, T{eis, Montour. Nays (0). Resolution declared adopted_ PURCHASE The City Administrator presented the proposed purchase agreement for AGREEMI';NT 594 Cowlty'Road B-2, the property that the City purchased and 594 COUNTY rehabilitated. 'T'he Administrator reviewed the details of the sale ROAD B-2 indicating that the purchase price is $287,500 with the City offering f nancing through a 30-year contract for deed with a 7-year balloon at 5.25% interest. The prospective buyer has made a ] 5% down payment.