05-13-2020 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MAY 13, 2020 PUBLIC HEARING: PRESBYTERIAN HOMES CONDUIT DEBT ISSUANCE Keis opened the Public Hearing to consider conduit debt issuance for Presbyterian Homes. The City Administrator explained that in 2018, the City of Little Canada received a request from Presbyterian Homes that the City act as the conduit issuer for two bond issuances, one in 2018 and one in 2020, for a project located in the City of Roseville. He stated that the City issued bonds in 2018 in the amount of $11,970,000, and the proceeds were intended to be used to demolish the Langton Place care center in Roseville and construct a new 50-bed care center in its place. He reported that the new care center has been completed, but the old care center demolition is currently on hold because it is being used as a temporary hospital overflow site during the pandemic. He stated that Presbyterian Homes is now ready to pursue the second bond issue and phase of the project. He explained the proposed issue in 2020 would be approximately $45 million to $50 million for the purpose of refinancing the 2018 issue and to construct a town center and adjacent 80-unit senior housing facility. He noted this expanded Langton Place campus, now known as Langton Shores, is located on County Road D in Roseville. The City Administrator explained that the issuance of the 2020 Bonds will mean that the City cannot issue any bank -qualified bonds (although it could still issue non -bank -qualified bonds) this year. The City Administrator stated that the City has not issued, and does not expect to issue, any governmental or other 501(c)(3) bonds in 2020. The City Administrator explained that there is no risk to the City of Little Canada with this financing, and the City will receive an issuer's fee of approximately $83,500 to $96,000. Mark Meyer, Presbyterian Homes, stated that they currently have a short-term lease with the state of Minnesota to use the vacant building as a hospital overflow in the case that they need it due to the current pandemic situation. He noted that Presbyterian Homes is very appreciative of the City willing to partner with them. There was no one from the public present wishing to comment on this matter. Upon motion by Keis, seconded by Torkelson, the public hearing was closed. McGraw introduced the following resolution and moved its adoption: RESOL UTION NO. 2020-5-60—APPROVINGA RESOL UTION PRO VIDING FOR THE APPROVAL OF A HOUSING PR0GRAM AND THE ISSUANCE AND SALE OF SENIOR HOUSING AND HEALTH CARE FACILITIES REVENUE BONDS (LANGTON SHORES PROJECT), SERIES 2020 RELATING TO A SENIOR HOUSING AND HEALTH CARE PROJECT The foregoing resolution was duly seconded by Montour. Roll Call Vote: Keis/Torkelson/Fischer/Montour/McGraw Ayes (5). Nays (0). Resolution declared adopted. 2