Laserfiche WebLink
<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Chris Heineman, City Administrator <br /> Brenda Malinowski, Finance Director <br /> <br />DATE: February 24, 2021 <br /> <br />RE: Resolution Calling for Public Hearing for New Harmony Conduit Bond Issuance <br /> <br /> <br />ACTION TO BE CONSIDERED <br />The City Council is asked to Approve a Resolution calling for a Public Hearing on Approving <br />the Issuance of Senior Housing and Healthcare Revenue Notes to Finance a Project by New <br />Harmony Care Center, Inc. and Authorizing the Publication of a Notice of the Hearing. <br /> <br />BACKGROUND <br />City staff has received a request from New Harmony Care Center, Inc., a Minnesota nonprofit <br />corporation and 501(c)(3) organization (the “Borrower”), that the City of Little Canada act as the <br />conduit debt issuer of 501(c)(3) revenue obligations in an amount of approximately $6,750,000. <br />The proceeds of the Bonds would be used to finance, in part, the acquisition, construction, and <br />equipping of a new senior healthcare and housing facility, including approximately 48 skilled <br />nursing beds, 16 transitional skilled nursing beds, 35 independent apartment units, 36 assisted <br />living apartment units, 14 memory care apartment units, and 12 care suite apartment units, to be <br />located at 1534 County Road C East in the City of Maplewood. <br /> <br />If the City Council is willing to act as a conduit issuer, the City must adopt a resolution at its <br />February 24th meeting that calls for that public hearing. The resolution authorizes the City <br />Administrator to set the actual date of the public hearing, currently anticipated for April 14, 2021. <br />Following the public hearing, the City Council would consider for adoption a resolution approving <br />the issuance of the Bonds. It is expected that the City will receive an administrative fee of ¼ of <br />1%, paid by the Borrower. In addition, you should be aware that the Borrower is responsible for <br />paying all costs of the transaction. There will be no costs paid by the City. <br /> <br />Please see the attached letter in connection with the expected issuance of tax-exempt revenue <br />obligations by the City of Hampton, the City of Landfall Village, the City of Falcon Heights, <br />and the City of Little Canada to finance the New Harmony Project. Enclosed with the letter are <br />a timeline and Resolution calling for the Public Hearing. <br /> <br /> <br />RECOMMENDED ACTION <br />Staff recommends approval of the Resolution calling for the Public Hearing and Authorizing the <br />Publication of a Notice of the Hearing.