Laserfiche WebLink
<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Fischer and Members of City Council <br /> <br />FROM: Chris Heineman, City Administrator <br /> <br />DATE: April 26, 2024 <br /> <br />RE: Amendments to 2011 & 2012 conduit notes for Presbyterian Homes of Arden Hills, Inc. <br />ACTION TO BE CONSIDERED: <br />City Council approval of a Resolution consenting to amendments to the City’s amended and restated <br />senior housing revenue note (Presbyterian Homes of Arden Hills, Inc. Project) Series 2011B and <br />amended and restated senior housing revenue note (Presbyterian Homes of Arden Hills, Inc. Project) <br />Series 2012B. <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 the development of the Presbyterian Homes senior <br />housing project located at 3200 Lake Johanna Boulevard in Arden Hills in 2012. This project utilized <br />the City of Little Canada’s tax exempt bonding authority to issue conduit debt on behalf of this project. <br />Similar to other senior housing projects, Presbyterian Homes utilized variable rate tax-exempt issuance <br />and used LIBOR as the applicable index. Due to the current interest rate market, it has become necessary <br />to amend those obligations to a new rate index due to the elimination of the LIBOR index in June, 2023. <br /> <br />As the issuer of the note, the City of Little Canada is being asked to approve a resolution to modify the <br />terms of the note so that the lender may designate a substitute comparable index. The borrower and <br />lender of the note have requested an amendment to replace the 1-month LIBOR Rate in each of the notes <br />with the Fallback Rate (SOFR) described in the attached Allonge documents. Similar to previous conduit <br />debt issuance, there is no liability for the City of Little Canada by taking this action. The following <br />attachments are included related to the conduit notes for Presbyterian Homes of Arden Hills: <br />(1) a memorandum describing the request for council action, <br />(2) a resolution approving the amendments for consideration by the City Council, <br />(3) a substantially final version of the allonge that will amend the note from 2011, <br />(4) a substantially final version of the allonge that will amend the note from 2012, and <br />(5) a notice from the bank to the City regarding the amendments. <br /> <br />RECOMMENDED ACTION: <br />City staff recommends approval of a Resolution consenting to amendments to the City’s amended and <br />restated senior housing revenue note (Presbyterian Homes of Arden Hills, Inc. Project) Series 2011B <br />and amended and restated senior housing revenue note (Presbyterian Homes of Arden Hills, Inc. Project) <br />Series 2012B.