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STAFF REPORT <br />TO: <br />FROM: <br />DATE: <br />RE: <br />Mayor Keis and Members of City Council <br />Chris Heineman, City Administrator <br />November 14, 2018 <br />Public Hearing on the Issuance of Conduit Debt for Presbyterian Homes <br />ACTION REQUESTED: <br />Approval of a Resolution providing for the issuance and sale of a Health Care Facilities <br />Revenue Note (Langton Place Project), Series 2018. <br />SUMMARY REPORT: <br />The City was approached by a representative of Presbyterian Homes asking if the City of Little Canada <br />would provide conduit financing to finance the costs of the acquisition, construction, and equipping of <br />an approximately 50,624 square foot, fifty-bed skilled nursing facility and the demolition of the <br />existing skilled nursing facility known as Langton Place, located at 1910 County Road D in the City of <br />Roseville, Minnesota. The Project will be owned and operated by the Borrower. The maximum <br />estimated principal amount of the notes to be issued to finance the Project is $13,000,000. <br />As the Council is aware, Minnesota cities have a $10 million annual bank qualified limit for that <br />can be utilized for this purpose. This same limit would apply to tax exempt financing the City may <br />undertake. The City of Little Canada has not utilized any of its annual bank qualified limit for 2018. <br />Given that Little Canada does not usually issue debt and that we will have $10 million of Bank <br />Qualified Debt still available, staff feels this is a good opportunity to generate some additional <br />revenue with very minimal risk and recommends approval of the Resolution.