05-13-2020 Council Packet - Laserfiche WebLink

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A-2 OVERVIEW The project to be financed and refinanced with the proceeds of the Senior Housing and Healthcare Facilities Revenue Bonds, Series 2020 Bonds (the “Series 2020 Bonds”), to be issued by the City of Little Canada, Minnesota, consists of a skilled nursing facility and independent senior housing campus with a town center in Roseville, Minnesota, to be known as Langton Shores (the “Campus” or “Langton Shores”), formerly known as Langton Place. In 2018, the Borrower became the borrower on the 2018 Note to fund the construction and equipping of a replacement 50-bed skilled nursing facility specializing in transitional care following surgery or injury (the “2018 Project” or the “Skilled Nursing Facility”). The 2018 Project received a Certificate of Occupancy in February 2020 with all work completed except landscaping and demolition of the prior existing skilled nursing facility. The second phase of the project (the “2020 Project” or “Independent Living Facility” and, together with the 2018 Project, the “Project”) consists of the addition of independent living apartments and a town center linking the independent living apartments and the transitional care units. Construction of the 2020 Project will commence upon the demolition of the skilled nursing facility the beds of which were replaced by the 2018 Project and which contains the land on which the 2020 Project is being constructed. THE CAMPUS General A portion of the proceeds of the Series 2020 Bonds will also be used to repay the outstanding principal of the City of Little Canada, Minnesota’s Health Care Facilities Revenue Note (Langton Place Project), Series 2018 (the “2018 Note”) , originally issued to finance the 2018 Project, fund a debt service reserve fund, fund capitalized interest on the Series 2020 Bonds for a period of time and pay costs of issuance of the Series 2020 Bonds. The completed Campus will consist of the following: Independent Living Apartments 83 Skilled Nursing/Transitional Care Beds 50 Total Apartments/Beds 133 The proceeds of the Series 2020 Bonds will be used by the Borrower to (i) refinance the outstanding principal amount of and accrued interest on the 2018 Note; (ii) finance the acquisition, construction and equipping of an 83-unit independent senior rental housing facility and town center to be added onto the 2018 Project all on a common campus located at 1910 County Road D West in the City of Roseville, Minnesota (the “2020 Project,” and together with the 2018 Project, the “Project”); (iii) fund capitalized interest on the Series 2020 Bonds for a period of time; (iv) fund required reserves; and (v) pay costs of issuance for the Series 2020 Bonds. In connection with the redevelopment of Langton Place into Langton Shores, PHS has provided $___________ of equity to the project. In addition, PHS has cancelled $_____________ of intercompany receivables from the old campus and as the Feasibility Study shows is anticipated to leave the Borrower with a net cash position of approximately $_________ at the end of Fiscal Year 2020. The Borrower’s Langton Place project which is being replaced by the Project and will be known as Langton Shores had 94 licensed skilled nursing beds until the Borrower reduced the amount of skilled nursing beds being used at the campus over the last few years. The reduction in skilled nursing beds at Langton Place over the last few years is described in detail in the Feasibility Study attached to this Official Statement as APPENDIX __. COVID-19 Impact Discuss delayed demolition and other effects of the COVID-19 pandemic here.