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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Chris Heineman, City Administrator <br /> <br />DATE: December 14, 2022 <br /> <br />RE: Conduit Debt Index Rate Amendment for Langton Place <br /> <br />ACTION TO BE CONSIDERED: <br />Resolution approving the modification of the note for Langton Apartments to change the interest rate <br />index from a LIBOR-based rate, which will no longer be available as of June 2023. <br /> <br />BACKGROUND: <br />City staff was contacted by the City of Little Canada’s bond attorney Catherine J. Courtney at Taft <br />regarding a conduit debt note that was issued for Langton Apartments project in 2018. Many variable <br />rate tax-exempt issues used LIBOR as the applicable index, and it has become necessary to amend those <br />obligations to a new rate index due to the elimination of the LIBOR index in June, 2023. The LIBOR <br />index was used in the 2018 Langton Place transaction. <br /> <br />The City of Little Canada, as the issuer of the note, is being asked by Associated Bank to approve a <br />resolution to modify the terms of the note so that the lender may designate a substitute comparable index. <br />The Note was issued by the City and its proceeds loaned to Presbyterian Homes Care Centers, Inc. <br />pursuant to the Loan Agreement. The holder of that note, Associated Bank, National Association, has <br />requested an amendment of the note to allow for this change. Similar to previous conduit debt issuance, <br />there is no liability for the City of Little Canada by taking this action. The following attachments are <br />included related to the Langton Apartments note: <br />a) Resolution approving the modification of the note for Langton Apartments to change the interest <br />rate index from a LIBOR-based rate, which will no longer be available as of June 2023. <br />b) Allonge to note. <br />c) Notice letter regarding change to interest rate index <br /> <br />RECOMMENDED ACTION: <br />City staff recommends approval of a Resolution approving the modification of the note for Langton <br />Apartments to change the interest rate index from a LIBOR-based rate, which will no longer be available <br />as of June 2023.