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HomeMy WebLinkAbout2018-173 Council Resolution-000%f EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lino Lakes, Minnesota, was duly held at the City Hall in said City on Monday, December 10, 2018, commencing at 6:30 o'clock P.M. The following Council members were present: Rafferty, Maher, Stoesz, Manthey, Reinert and the following were absent: none Council member Manthey introduced the following resolution and moved its adoption: RESOLUTION NO. 18-173 A RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF SENIOR HOUSING AND HEALTH CARE REVENUE NOTE (HERITAGE APARTMENTS PROJECT), SERIES 2018 The motion for the adoption of the foregoing resolution was duly seconded by member Stoesz, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Manthey, Stoesz, Rafferty, Maher, Reinert and the following voted against the same: none whereupon said resolution was declared duly passed and adopted. 112zsbi2vi .-11N, RESOLUTION NO. 18-173 A RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF SENIOR HOUSING AND HEALTH CARE REVENUE NOTE (HERITAGE APARTMENTS PROJECT), SERIES 2018 WHEREAS, Minnesota Statutes, Chapter 462C, as amended, and Section 471.656 (the "Act"), confers upon cities, the power to issue revenue obligations to finance combined multifamily housing and health care developments within the boundaries of the city; and WHEREAS, the City of Lino Lakes, Minnesota (the "City"), has received from Heritage Apartments, Inc., a Minnesota nonprofit corporation (the "Borrower"), a proposal that the City of Falcon Heights, Minnesota ("Issuer"), undertake a program to assist in financing, in part, the Lino Lakes Project hereinafter described, through the issuance of revenue notes or obligations (the "Note") to be issued in 2018 pursuant to the Act; and WHEREAS, the Note will be issued to finance, in part, the acquisition, construction, and equipping of multifamily senior housing facilities, with approximately 103 independent living units, 34 assisted living units, 16 memory care units, 48 skilled nursing units, and 30 townhome units, totaling approximately 106,730 square feet, to be located at 6075 Hodgson Road in the City (the "Lino Lakes Project"); and WHEREAS, Lyngblomsten Senior Housing, Inc., a Minnesota nonprofit corporation, of which the Borrower is an affiliate, will be the owner and operator of the Lino Lakes Project; and WHEREAS, as required by the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), a Notice of Public Hearing was published in Lino Lakes's official newspaper and newspaper of general circulation, for a public hearing on the proposed issuance of the Note by the Issuer and the proposal to undertake and finance the Lino Lakes Project; and WHEREAS, as required by the Act and Section 147(f) of the Code, the City Council of the City has on this same date held a public hearing on the issuance of the Note by the Issuer and the proposal to undertake and finance the Lino Lakes Project located within the jurisdictional limits of the City, at which all those appearing who desired to speak were heard and written comments were accepted; and WHEREAS, the City has been advised that the Note, as and when issued, will not constitute a charge, lien, or encumbrance upon any property of the City or the Issuer, except the revenues to be derived from a revenue agreement. Such Note will not be a charge against the general credit or taxing powers of the City or the Issuer, but is payable from sums to be paid by the Borrower pursuant to a revenue agreement; and WHEREAS, in connection with the issuance of the Note, there has been presented to the City the form of a Joint Powers Agreement anticipated to be dated as of December 1, 2018 between the City, the Issuer, and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Joint Powers Agreement"); 4 11225612v1 00—� NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota, as follows: 1. Recital of Representations Made by the Borrower. The Borrower has agreed to pay any and all costs incurred by the City in connection with the issuance of the Note, whether or not such issuance is carried to completion. 2. Host Approval. The City Council hereby gives the host approval required under Section 147(f) of the Code and, pursuant to Minnesota Statutes, Section 471.656, Subd. 2(2), the City Council hereby consents to the issuance of the Note by the Issuer. 3. Joint Powers Agreement. The Joint Powers Agreement is hereby approved in substantially the form submitted. The Mayor and City Administrator are hereby authorized and directed to execute and deliver the final form of the Joint Powers Agreement. Adopted by the City Council of the City of Lino Lakes, Minnesota s 101h day of December, 2018.E Mayor ATTEST: City �Cler 11225612v1 CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Sarah Cotton, Finance Director MEETING DATE: December 10, 2018 TOPIC: Public Hearing for and Consideration of Resolution No. 18-173, Consenting To and Granting Host Approval to the Issuance by the City of Falcon Heights of a Revenue Note for the Benefit of Heritage Apartments, Inc. VOTE REQUIRED: 3/5 BACKGROUND Heritage Apartments, Inc. (Lyngblomsten) has proposed development of a senior living campus with a continuum of care at the northwest corner of CSAH49/Hogdson Road and CSAH 32/Ash Street/County Road J. The proposal includes a restaurant and a mix of 30 detached townhomes plus 200 units of independent living, assisted living and memory care/enhanced care suites. The Lino Lakes City Council reviewed the Planned Unit Development Concept Plan at its August 6, 2018 meeting. Heritage Apartments, Inc. has submitted a proposal which includes the financing, in part, of the Lino Lakes Project, in addition to the refinancing of an existing facility. 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. Heritage Apartments, Inc. has requested that the City of Falcon Heights issue revenue obligations to finance combined multifamily housing and healthcare developments. In order for the City of Falcon Heights to issue the Note, the City of Lino Lakes must grant "host approval" to the issuance of the Note, following a duly noticed public hearing. The City Council adopted Resolution No. 18-158, calling a public hearing on providing host approval on November 13, 2018. Representatives from Heritage Apartments, Inc. (Lyngblomsten) will be present at the December 10, 2018 meeting to answer any questions the Council may have. RECOMMENDATION Following the public hearing, staff recommends approval of Resolution No. 18-173. .� ATTACHMENTS Resolution No. 18-173