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<br />Item No: 7.A. <br />Meeting Date: November 26, 2012 <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: Resolution 8027 Giving Preliminary Approval to the Proposed <br />Issuance of a Health Care Facility Revenue Note Under Minnesota <br />Statutes, Sections 469.152 Through 469.1651, as Amended <br /> <br />Introduction: <br />The City Council was presented with a proposal at the June work session by Apple Tree Dental to use <br />conduit debt financing to finance the acquisition, construction and equipping of an approximately 16,000 <br />square foot building located at 2442 County Road 10 in the City to be used as a new clinic and <br />headquarters facility. Additional items have been added to the project to include the acquisition, <br />construction and equipping of an existing approximately 6,000 square foot clinic and office facility located <br />at 210 Wood Lake Drive in Rochester, Minnesota and refinance existing indebtedness incurred in <br />connection with the clinic facility located at 520 Main Street in Hawley, Minnesota. The preliminary note <br />amount is $8,500,000 and the City will receive a 1% issuance fee for the use of the City’s lending <br />authority. The City Council was supportive of moving forward with use of conduit debt financing at the <br />June work session and has subsequently approved a PUD amendment for the building at 2442 County <br />Road 10. <br /> <br />Discussion: <br />There are a number of steps that will need to happen before the Health Care Facility Revenue Note can <br />be issued. The first step is for the City Council to hold a public hearing, grant preliminary approval, and <br />receive approval from the Minnesota Department of Employment and Economic Development (DEED). <br />Final approval would occur at the December 10, 2012 Council meeting provided all required steps have <br />been completed. <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 review the information, ask questions and if comfortable approve <br />Resolution 8027. <br /> <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />Mark Beer <br />Finance Director <br /> <br />