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CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Hannah Lynch, Finance Director MEETING DATE: July 26, 2021 TOPIC: Public Hearing for and Consideration of Resolution No. 21-77, Providing Host Approval to the Issuance of Revenue Obligations by the City of Bethel for the Benefit of Lyngblomsten of Lino Lakes, LLC VOTE REQUIRED: 3/5 BACKGROUND Lyngblomsten at Lino Lakes, LLC (the "Borrower") is looking to finance the acquisition, construction, and equipping of an approximately 167-unit senior housing development, including approximately 96 independent living apartments, 20 detached independent living townhomes, 35 assisted living units, and 16 assisted memory care units (the "Project"), to be located near the intersection of Hodgson Road and County Road J/Ash Street in the City. The Project will be owned and operated by the Borrower. The Borrower has requested that the City of Bethel issue revenue obligations to finance the Project. In order for the City of Bethel to issue the Revenue Note, the City of Lino Lakes must grant "host approval" to the issuance of the Note. State Statute authorizes a municipality to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the governing body of the city in which the property is located consents by resolution to the issuance of such obligations. The City of Lino Lakes is not able to issue the revenue obligations for the Borrower due to the City's General Obligation Street Reconstruction Bonds, Series 2021A which sold on July 15, 2021. These bonds were designated "bank qualified" and a city is limited to issuing $10,000,000 of bank-qualified bonds per year. Further explanation is provided in the attached letter from Julie Eddington, the City's Bond Counsel. She will be in attendance at the July 26th meeting to answer any questions. RECOMMENDATION Following the public hearing, staff recommends approval of Resolution No. 21-77. ATTACHMENTS Host Approval Letter Resolution No. 21-77