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MOUNDS VtE-W <br />of Mounds View Staff <br />Item No: 7.A. <br />Meeting Date: October 28, 2013 <br />Type of Business: Council Business <br />Administrator Review: <br />s <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 8165 Authorizing the Issuance, Sale, and Delivery of a <br />Subordinate Health Care Facilities Revenue Note (BHS/Allina TCU <br />Project), Series 2013, in the Aggregate Principal Amount not to <br />Exceed $3,000,000, for the Benefit of Benedictine Living Center of <br />Fridley, LLC, Payable Solely from Revenues Pledged Pursuant to a <br />Loan Agreement and a Servicing Agreement; and approving the form <br />of and Authorizing the Execution and Delivery of Related Documents <br />Introduction: <br />The City Council provided preliminary approval on September 23rd to use conduit debt financing to <br />finance the acquisition, construction and equipping of a 45 -bed transitional care facility and 5 care suites <br />located on the Unity Hospital/Allina campus. The final subordinate note amount is $3,000,000 and the <br />City will receive a 1 % issuance fee for the use of the City's lending authority. The note will not constitute <br />a general or moral obligation of the City and will not be secured by or payable from any property or assets <br />of the City. The note will not be secured by any taxing power of the City. The City Council has been <br />supportive of moving forward with use of conduit debt financing as the project will be beneficial to Mounds <br />View residents. <br />Discussion: <br />This is the final step in issuing the Subordinate Health Care Facility Revenue Notes. Resolution 8155 <br />granted preliminary approval, set a public hearing, and authorized application for authorization to issue <br />from the Minnesota Department of Employment and Economic Development (DEED). The City is <br />represented by Julie Eddington as lead bond council from Kennedy & Graven. Gina Fiorini is <br />representing Kennedy & Graven tonight. <br />Recommendation: <br />Staff recommends that Council review the information, ask questions and if comfortable approve <br />Resolution 8165. <br />Respectfully submitted, <br />e� <br />ark Beer <br />Finance Director <br />