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h, <br />MOLMS VIM <br />City of Mounds View Staff Report <br />Item No: 7.A. <br />Meeting Date: September 23, 2013 <br />Type of Business: Council Business <br />Administrator Review: _ <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 8155 Giving Preliminary Approval to the Proposed <br />Issuance of a Subordinate Healthcare Facilities Revenue Note Under <br />Minnesota Statutes, Sections 469.152 Through 469.1655, as <br />Amended; Authorizing the Publication of a Notice of Public Hearing; <br />and Establishing the Date for a Public Hearing <br />Introduction: <br />The City Council is asked to consider a proposal to use conduit debt financing to finance the acquisition, <br />construction and equipping of a 45 -bed transitional care facility and 5 care suites located on the Unity <br />Hospital/Allina campus. The preliminary subordinate note amount is $3,000,000 and the City will receive <br />a 1 % issuance fee for the use of the City's lending authority. The note will not constitute a general or <br />moral obligation of the City and will not be secured by or payable from any property or assets of the City <br />and will not be secured by any taxing power of the City. The City Council has indicated its' support for <br />moving forward with use of conduit debt financing at the September 9th Council meeting. <br />Discussion: <br />There are a number of steps that will need to happen before the Subordinate Health Care Facility <br />Revenue Note can be issued. The first steps are for the City Council is to grant preliminary approval, set <br />a public hearing, and receive approval from the Minnesota Department of Employment and Economic <br />Development (DEED). Final approval would occur at the October 28th Council Meeting at a Public <br />Hearing. <br />The City Council is not obligated to issue the note by this resolution this is just one of the steps necessary <br />to move toward that objective. If at any time during the review process, the City Council determines that <br />this is not in the City's best interest we can withdraw support for the note issuance. The City is <br />represented by Julie Eddington as bond council from Kennedy & Graven. <br />Recommendation: <br />Staff recommends that Council review the information, ask questions and if comfortable approve <br />Resolution 8155. <br />Respectfully submitted, <br />Mark Beer <br />Finance Director <br />