05-13-2020 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator Brenda Malinowski, Finance Director DATE: May 13, 2020 RE: Public Hearing and Resolution for Presbyterian Homes Conduit Bond Issuance ACTION TO BE CONSIDERED The City Council is asked to conduct a Public Hearing to receive public input related to the issuance of conduit bonds on behalf of Presbyterian Homes. The Council is also asked to adopt a Resolution providing for the approval of a housing program 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. BACKGROUND City staff has received a request from Presbyterian Homes (the “Borrower”) that the City of Little Canada act as the conduit debt issuer for senior housing and health care facilities revenue bonds for a project located in the City of Roseville. The bond issuance is related to the 2018 conduit bond issuance by the City of Little Canada. The new bonds will be 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 will be located on County Road D in Roseville. The City of Little Canada received a .25% issuance fee which resulted in a payment of $29,000 from Presbyterian Homes in December 2018 for Phase I of the project. Presbyterian Homes was hoping to cap the fee for Phase II at $25,000 to help keep the costs of the Project down. Due to the City’s previous relationship with Presbyterian Homes, staff negotiated a reduction to the current fee by subtracting the amount of the 2018 issuance fee from the new issuance. This will result in an issuance fee of approximately $83,500 for the City of Little Canada. In other words, our recommendation is $83,500 (112,500-$29,000). The $112,500 is .25% of the 45mm issue. The public hearing and final approval resolution are scheduled for the May 13th meeting, and all public hearing notices have been published. Presbyterian Homes has put the demolition of the old skilled nursing facility on hold and is making it available to the State of Minnesota for COVID-19 patients. Because of this, Presbyterian Homes is currently taking a wait and see approach to issuing the bonds. Presbyterian Homes is seeking approval of a Resolution from the City of Little Canada at this time so they are ready to move forward with the issuance when Northland Securities feels it is the right time to enter the bond market. RECOMMENDED ACTION Staff recommends moving forward with the Public Hearing and approval of the Resolution.