Agenda Packets - 2018/03/26 - Laserfiche WebLink

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March 20, 2018 Mark Beer, Finance Director City of Mounds View 2401 Mounds View Boulevard Mounds View, MN 55112 Re: Resolution consenting to the redemption of the Subordinate Health Care Facilities Revenue Note (BHS/Allina TCU Project), Series 2013 Dear Mark, On December 30, 2013, the City of Mounds View (the "City") issued its Subordinate Health Care Facilities Revenue Note (BHS/Allina TCU Project), Series 2013 (the "Subordinate Note"), in the original aggregate principal amount of $2,900,000. The Subordinate Note was issued under the terms of a Servicing Agreement, dated as of December 1, 2013, between the City, Piper Jaffray Lending LLC, in its capacity as servicer, and Cedar Rapids Bank & Trust, in its capacity as lead lender. The City loaned the proceeds of the Subordinate Note to PHS Interlude Fridley, LLC, a Minnesota nonprofit limited liability company formerly known as Benedictine Living Center of Fridley, LLC (the "Borrower"), for the purpose of financing a portion of the costs of the acquisition, construction, and equipping of a 50 -bed transitional care facility (the "Project") located at 520 Osborne Road on the Unity Hospital/Allina campus in Fridley, Minnesota. The Subordinate Note was issued in accordance with the provisions of Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the "Act"). The Borrower would like to refinance the Project and has requested that the City of St. Paul Park (the "City of St. Paul Park") issue its revenue obligations (the "Bonds") in the approximate aggregate principal amount of $26,000,000, a portion of the proceeds of which will be used to refinance the City's outstanding Subordinate Note. In order for the City of St. Paul Park to issue the Bonds, the Borrower is requesting that the City council of the City approve the refinancing of the City's Subordinate Note. The City Council is being asked to consider the enclosed resolution on March 26, 2018. By adopting the resolution, the City will consent to the issuance of the Bonds by the City of St. Paul Park to refinance, in part, the outstanding Subordinate Note. The enclosed resolution will satisfy the requirements of Section 469.155, subdivision 12 of the Act. If you have any questions on the foregoing, please do not hesitate to contact me. KENNEDY & GRAVEN, CHARTERED Julie Eddington 518815v2 ME FR110-14 4