02-23-2005 Council Agenda - Laserfiche WebLink

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RESOLUTION NO. 2005- RESOLUTION CONSENTING TO THE ISSUANCE OF REVENUE BONDS BY THE PORT AUTHORITY OF THE CITY OF SAINT PAUL ON BEHALF OF NEW HARMONY BE IT RESOLVED by the City Council of the City of Little Canada, Minnesota (the "City "), as follows: SECTION 1 Recitals 1.1 On January 12, 2005, the City adopted its Resolution No. 2005 -1 -19 instructing the City Administrator to pursue the investigation of the City's sponsorship of tax - exempt financing for the New Harmony Care Center which is owned by New Harmony Care Center, Inc. (the "Borrower "). 1.2 The Borrower has informed the City of its desire to finance the renovation and equipping of the 76 bed skilled nursing facility located at 135 Geranium Avenue, in the City of Saint Paul (the "Project ") with the proceeds of approximately $5,000,000 of tax - exempt revenue bonds (the "Bonds ") to be issued by the Port Authority of the City of Saint Paul (the "Port Authority "). 1.3 The Borrower has represented to the City that the Project will assist the Borrower in improving its facilities, for the benefit of the residents of the City and surrounding area; that the issuance of tax - exempt revenue bonds is essential to the successful completion of the Project; and that the Port Authority has evidenced a willingness to issue tax - exempt revenue bonds and loan the proceeds thereof to the Borrower to finance the proposed Project. 1.4 The City wishes to facilitate the financing of the Project by the Borrower, and to that end has agreed to enter into a Joint Powers Agreement with the Port Authority in substantially the form attached hereto as Exhibit A. 1.5 Section 265(b) of the Internal Revenue Code of 1986, as amended (the "Code "); allows a governmental unit such as the City to designate obligations as "qualified tax exempt obligations" even if it is not the issuer of the obligations thereby allocating all or a portion of its "small issuer status" limit of $10,000,000 under Section 265(b) ( "bank qualification ") of the Code upon the conditions set forth in Section 265(b) of the Code. 1.6 The City has not issued, nor expects to issue during calendar year 2005 any governmental bonds or "qualified 501(e)(3) bonds" or any other obligations within the meaning of Section 265(b) of the Code that need to be taken into account in determining whether the City is a "qualified small issuer" within the meaning of Section 265(b) of the Code in an amount 2574872v1 2