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<br />Item No: 7.A. <br />Meeting Date: September 8, 2014 <br />Type of Business: Council Business <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Public Hearing to Consider Resolution 8299 Regarding the Issuance of <br />a Revenue Note for the Benefit of Catholic Eldercare and Taking <br />Actions Related Thereto <br /> <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 transitional care unit consisting of the addition of 24 skilled nursing beds <br />to the existing 150-bed skilled nursing facility located at 900 2nd Street NE in the City of Minneapolis. <br />The City is part of the service area for this facility thus we are able to use our lending authority. The <br />preliminary revenue note amount is $4,000,000 and the City will receive a 1% issuance fee ($40,000) for <br />the use of the City’s lending authority. Catholic Eldercare the borrower has proposed to apply the <br />proceeds of the City Note, along with the proceeds of a revenue note proposed to be issued by the City of <br />Lauderdale, Minnesota in an aggregate principal amount not to exceed $10,000,000 and a revenue note <br />proposed to be issued by the City of Minneapolis in an aggregate principal amount not to exceed <br />$5,000,000 for this project. The note will not constitute a general or moral obligation of the City and will <br />not be secured by or payable from any property or assets of the City and will not be secured by any taxing <br />power of the City. The City Council has indicated its’ support for moving forward with use of conduit debt <br />financing for this project. <br /> <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, <br />hold a public hearing, and receive approval from the Minnesota Department of Employment and <br />Economic Development (DEED). Final approval would occur at a future date once the project is granted <br />approval by the City of Minneapolis. <br /> <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 Jenny Boulton as bond council from Kennedy & Graven. <br /> <br />Recommendation: <br />Staff recommends that Council open the public hearing, take any comment, ask questions and if <br />comfortable approve Resolution 8299. <br /> <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />Mark Beer <br />Finance Director