07-26-2021 Council Packet - Laserfiche WebLink

Home Search

Offices in Minneapolis Saint Paul St. Cloud 150 South Fifth Street Suite 700 Minneapolis, MN 55402 (612) 337-9300 telephone (612) 337-9310 fax www.kennedy-graven.com Affirmative Action, Equal Opportunity Employer Error! Unknown document property name. JULIE A. EDDINGTON Attorney at Law Direct Dial (612) 337-9213 Email: jeddington@kennedy-graven.com July 20, 2021 Hannah Lynch Finance Director City of Lino Lakes 600 Town Center Parkway Lino Lakes, Minnesota 55014 Re: Host approval for Lyngblomsten senior housing project Dear Hannah, Lyngblomsten at Lino Lakes, LLC, a Minnesota limited liability company, or any of its affiliates (collectively, the “Borrower”) has proposed to acquire, construct, and equip 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 of Lino Lakes (the “City”). The Borrower will own and operate the Project, which will be used to further the Corporation’s mission to promote dignity through providing informed choices for senior living options and orchestrating the best life possible for senior citizens. In order to finance the Project, the Borrower and the Corporation have requested that the City of Bethel (the “City of Bethel”) issue one or more series of revenue obligations (the “Notes”), in the approximate maximum principal amount of $45,000,000. Pursuant to Minnesota Statutes, Section 471.656, a city is authorized to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such city if the obligations are issued under a joint powers agreement between the city issuing the obligations and the city in which the property to be acquired or improved is located. Under Minnesota Statutes, Section 471.59, by the terms of a joint powers agreement entered into through action of their governing bodies, two or more cities may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised and the joint powers agreement may provide for the exercise of such powers by one or more of the participating cities on behalf of the other participating cities. The Corporation and the Borrower request that the City Council (the “Council”) of the City grant “host approval” for the issuance of the Notes by the City of Bethel, a portion of the proceeds of which will be used to finance the Project. The City of Lino Lakes is unable to issue the Notes due to the fact that the City issued its own bank-qualified bonds this year. If Lino Lakes had agreed to issue the Notes for the Project, the City would not have been able to designate its general obligations bonds as bank-qualified. The Council has been asked to conduct a public hearing on July 26, 2021, on the proposed issuance of the Notes by the City of Bethel and to consider granting host approval to the issuance of such Notes. Following the public hearing, the Council will be asked to consider the enclosed resolution for the purposes