09-28-11 Council Agenda - Laserfiche WebLink

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CITY OF LITTLE CANADA COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. AUTHORIZING THE ISSUANCE AND SALE OF SENIOR HOUSING REVENUE NOTES (PRESBYTERIAN HOMES OF ARDEN HILLS, INC. PROJECT), SERIES 2011B AND SERIES 2012B, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $12,000,000; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE NOTES, LOAN AGREEMENTS, AND CERTAIN RELATED DOCUMENTS; AND PROVIDING FOR THE SECURITY, RIGHTS, AND REMEDIES WITH RESPECT TO THE NOTES WHEREAS, pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes, Chapter 462C, as amended (the "Housing Act "), statutory and home rule cities and other political subdivisions of the State of Minnesota are authorized to carry out the public purposes described therein and contemplated thereby in the financing of' multifamily housing developments by issuing revenue obligations to defray, in whole or in part, the development costs of multifamily housing developments, and by entering into any agreements made in connection therewith and by pledging any such agreements as security for the payment of the principal of and interest on any such revenue obligations; and WHEREAS, a multifamily housing development financed under the Housing Act may consist of a multifamily housing development combined with a new or existing health care facility if (1) the multifamily housing development is designed and intended to be used for rental occupancy; (ii) the multifamily housing development is designed and intended to be used primarily by elderly or physically handicapped persons; and (iii) nursing, medical, personal care, and other health- related, assisted - living services are available on a 24 -hour basis in the multifamily housing development to the residents; and WHEREAS, Presbyterian Homes of Arden Hills, Inc., a Minnesota nonprofit corporation (the "Borrower "), has requested the participation of the City of Little Canada (the "City ") in the financing of the demolition of an existing senior housing facility and the acquisition, construction, and equipping of a multifamily housing development consisting of a senior rental housing facility comprising independent living units, assisted living units, and memory -care units (a combined total of approximately 166 dwelling units) to be located at 3120 and 3220 Lake Johanna Boulevard in the City of' Arden Hills (the "Project "); and WHEREAS, the Borrower has requested that the City authorize the issuance of revenue bonds or other revenue obligations, in a principal amount of approximately $12,000,000, under the terms of the Housing Act to finance a portion of the following: (1) the construction and equipping of the Project and (ii) the payment of a portion of the costs of issuing the bonds; and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, require that prior to the issuance of the bonds, the City Council (the "Council ") of the City must approve the financing of the Project and issuance of the Bonds after conducting a public hearing thereon and notice of such public hearing shall be published at least once, not Tess than fourteen days prior to the date fixed for the hearing in a newspaper of general circulation within the City; and 4243192v2 5 1