Agenda Packets - 2011/09/12 - Laserfiche WebLink

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Mounds View City Council August 8, 2011 Regular Meeting Page 2 1 Council Member Stigney questioned if any further information was available regarding the 2 Vikings Stadium. Senator Wolf stated a special session may be called and if this was the case 3 she would notify the City of Mounds View immediately. She indicated a Town Hall meeting 4 could be held as well to gain addition input to bring to the State regarding this issue. 5 6 Finance Director Beer asked if there were any changes made to pension reform. Senator Wolf 7 noted she would report back to the Council with these details. 8 9 Mayor Flaherty thanked Senator Wolf for her being present this evening. Senator Wolf 10 encouraged the Council to contact her with any further comments or concerns. 11 12 B. Conduit Debt Discussion, Ben Johnson, Kennedy & Graven 13 14 Ben Johnson, Kennedy & Graven, stated his firm was the City’s debt and finance attorney for the 15 City. He noted Presbyterian Homes in Arden Hills was redeveloping their site and was 16 requesting to finance it through conduit revenue bonds. Neighboring communities are being 17 asked to assist with the financing of this redevelopment as Presbyterian Homes draws a portion 18 of its residents from the City of Mounds View. The debt would be repaid by the non-profit 19 borrower and of no responsibility to the City. 20 21 Mayor Flaherty thanked Mr. Johnson for his letter to the City regarding the conduit bonds. He 22 indicated this letter provided a great deal of information to the Council regarding the tax exempt 23 bonds. 24 25 Mr. Johnson stated over the past 10 years senior care has shifted from nursing homes to 26 independent senior living/assisted living. Presbyterian Homes was proposing renovations to their 27 site to fit the changing needs of their clientele. He further explained how the draw down loans 28 would assist Presbyterian Homes with the construction and redevelopment of the property. Mr. 29 Johnson indicated if the Council was interested in proceeding, a public hearing would be called 30 for and a Resolution would be drafted. Approval would be subject to specific parameters. 31 32 Council Member Gunn asked if this was a one-time request for $10 million or if the request 33 would be made again next year. Mr. Johnson stated Presbyterian Homes was requesting $10 34 million this year from Mounds View and could again request $10 million next year, but this 35 request would be made to the City of Arden Hills. He explained that additional cities were being 36 approached for conduit financing. 37 38 Council Member Hull questioned if the other cities would all be competing at the 1% bond 39 payment level. Mr. Johnson stated this would be analyzed by Presbyterian Homes. He then 40 reviewed a tentative timeline with the Council. 41 42 Mayor Flaherty indicated the 1% issuance fee was fair and felt the City should proceed with the 43 conduit financing. The Council was in agreement. 44 45