|
CHARTERED
<br />Tuesday, June 30, 2015
<br />Offices in
<br />Minneapolis
<br />Saint Paul
<br />St. Cloud
<br />Joel Hanson
<br />Administrator
<br />City of Little Canada
<br />515 Little Canada' Road East •
<br />Little Canada, Minnesota 55117-1633
<br />470 U.S. Bank Plaza
<br />200 South Sixth Street
<br />Minneapolis MN 55402-1458
<br />(612)337-9300 telephone
<br />(612)337-9310 fax
<br />www. kennedy-graven. coin
<br />Affirmative Action, Equal OpportunityEmployer
<br />Re: Presbyterian Homes of Arden Hills, Inc. — Resolution Amendments to the Notes Issued in
<br />Calendar Years 2011 and 2012
<br />In conjunction with the proposed issuance by the City of Arden Hills ("Arden Hills") of its revenue
<br />obligations (the "Series 2015 Note") to finance the Phase II Project (described below), and in accordance
<br />with the terms of an agreement between Presbyterian. Homes of Arden Hills, Inc., a Minnesota nonprofit
<br />corporation (the "Borrower"), and Bremer Bank, National Association (the "Lender"), the Borrower has
<br />requested that: (A) Arden. Hills approve certain amendments to the outstanding revenue obligations of Arden
<br />Hills issued in calendar years 2011 and 2012, including: (i) Senior Housing Revenue Note (Presbyterian
<br />Homes of Arden Hills, Inc. Project), Series 201.1A (the "Series 2011A Note"), issued on September 9, 2011,
<br />in the original aggregate principal amount of $10,000,000; and (ii) Senior Housing Revenue Note
<br />(Presbyterian Homes of Arden Hills, Inc. Project), Series 2012A (the "Series 2012A Note"), issued on
<br />January 3, 2012,.in the original aggregate principal amount of $10,000,000; and (B) the City of Little Canada
<br />(the "City") approve certain amendments to the outstanding revenue obligations of the City issued in calendar
<br />years 2011 and 2012, including: (i) Senior Housing Revenue Note (Presbyterian Homes of Arden Hills, Inc.
<br />Project), Series 2011B (the "Series 2011B Note"), issued on September 30, 2011,.in the original aggregate
<br />principal amount of $10,000,000; and (ii) Senior Housing Revenue Note (Presbyterian Homes of Arden Hills,
<br />Inc. Project), Series 2012B (the "Series 2012B Note"), issued on January 19, 2012, in the original aggregate
<br />principal amount of $2,000,000.
<br />The Series 2011A Note, Series 2011B Note, Series 2012A Note, and Series 2012B Note
<br />(collectively, the "Prior Notes") were sold to the Lender, the proceeds of which were loaned by Arden. Hills
<br />and the City to the Borrower, and applied by the Borrower to finance the first phase of the Minimum
<br />Improvements under a Contract for Private Development, dated. December 20, 2010 (the "Development
<br />Contract"), between Arden .Hills and the Borrower, which consisted of the demolition of an existing senior
<br />housing facility and the acquisition, construction, and equipping of a multifamily housing development
<br />including a senior rental housing facility comprised of independent living units, assisted living units, and
<br />memory -care units (a combined total of approximately 166 dwelling units) now located at 3120 and 3220
<br />Lake Johanna Boulevard in Arden Hills (the "Phase 1 Project"). Construction of the Phase 1 Project has been
<br />completed.
<br />The Borrower proposes to begin, or has begun, construction of the second phase of the Minimum
<br />Improvements under the Development Contract, consisting of the acquisition, construction, and equipping of
<br />a senior housing facility comprised of forty (40) independent -living, rental apartments to be located in two
<br />buildings (twenty (20) apartments per building), together with necessary common areas and community
<br />space, to be located at 3200 Lake Johanna. Boulevard in Arden Hills (the "Phase II Project"). Proceeds of the
<br />Series 2015 Note to be issued by Arden Hills will be loaned to the Borrower by Arden Hills, and the
<br />Borrower proposes to apply such proceeds to finance the Phase II Project. The City Council of Arden Hills
<br />
|