04-08-2020 Council Packet - Laserfiche WebLink

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12492647v1 Taft Stettinius & Hollister LLP Chicago / Cincinnati / Cleveland / Columbus / Dayton / Delaware / Denver / Indianapolis / Minneapolis / Northern Kentucky / Phoenix MEMORANDUM BY EMAIL TO: Chris Heineman, City of Little Canada City Administrator FROM: Catherine J. Courtney DATE: March 31, 2020 RE: Request from Presbyterian Homes for the City to Act as Conduit Issuer for Phase II of Langton Place The City of Little Canada previously received a request from Presbyterian Homes (the “Borrower”) that the City act as the conduit issuer for two bond issuances – one in 2018 and one originally anticipated to be in 2019 – for a project located in the City of Roseville. In 2018, the City issued the first series of bonds in a principal amount of $11,970,000 and the proceeds were used to demolish the Langton Place care center in Roseville and construct a new 50-bed care center in its place. Presbyterian Homes is ready to proceed with Phase II of the project, which will require bonds to be issued in an amount not to exceed $50,000,000 for the purpose of refinancing the 2018 issue and to construct a town center and adjacent 80-unit senior housing facility. This expanded Langton Place campus is located on County Road D in Roseville. The new facility will be known as Langton Shores. (The new care center has been completed and residents have been moved into it. The old care center has not yet been demolished as, for the time being, Presbyterian Homes is offering it as overflow space for hospitals for the current health crisis.) The issuance of the 2020 Bonds would mean that the issuer could not issue its own bank- qualified bonds (although it could still issue non-bank-qualified bonds). As Little Canada was the issuer in 2018, Presbyterian Homes prefers that it also act as the issuer for the 2020 Bonds. Although Roseville does not expect to issue bonds for its own purposes in 2020 that it wants to designate as bank-qualified and, therefore, could act as the conduit issuer in this transaction, it is willing to give host approval and allow Little Canada to again act as issuer. It is my understanding that the City has not issued any governmental or other 501(c)(3) bonds in 2020 and that the City currently does not have plans to issue any such bonds in 2020, although it could issue bonds that do not necessitate designation as bank-qualified. In addition to the 2018 transaction, the City has acted as conduit issuer for the Borrower in other transactions in the past. Most recently in 2014.