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Item No: 7.C. Meeting Date: November 10, 2014 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8322 Authorizing the Issuance, Sale, and Delivery of a Revenue Obligation for the Benefit of Catholic Eldercare; Authorizing the Execution and Delivery of the Revenue Obligation and Related Documents; and Taking Other Actions Related Thereto Introduction: The City Council is asked to consider a proposal to use conduit debt financing to finance the acquisition, construction, and equipping of a transitional care unit consisting of the addition of 24 skilled nursing beds to the existing 150-bed skilled nursing facility located at 900 2nd Street NE in the City of Minneapolis. The City is part of the service area for this facility thus we are able to use our lending authority. The preliminary revenue note amount is $4,000,000 and the City will receive a 1% issuance fee ($40,000) for the use of the City’s lending authority. Catholic Eldercare the borrower has proposed to apply the proceeds of the City Note, along with the proceeds of a revenue note proposed to be issued by the City of Lauderdale, Minnesota in an aggregate principal amount not to exceed $10,000,000 and a revenue note proposed to be issued by the City of Minneapolis in an aggregate principal amount not to exceed $5,000,000 for this project. The note will not constitute a general or moral obligation of the City and will not be secured by or payable from any property or assets of the City and will not be secured by any taxing power of the City. The City Council has provided preliminary approval and indicated its’ support for moving forward with use of conduit debt financing for this project. Discussion: This is final approval to issue a revenue note to provide conduit funding for an eldercare project that benefits the Mounds View service area. The first steps have been completed by the City Council by granting preliminary approval and holding a public hearing. The City will need to receive approval from the Minnesota Department of Employment and Economic Development (DEED). If the City Council is not comfortable with the project you are not obligated to issue the note but once you approve this resolution we would be committed to move forward. The City is represented by Jenny Boulton as bond council from Kennedy & Graven. Recommendation: Staff recommends that Council ask questions and if comfortable approve Resolution 8322. Respectfully submitted, ________________________ Mark Beer Finance Director