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Mounds View City Council September 13, 2010 Regular Meeting Page 2 1 Finance Director Beer explained the Council approved moving forward with issuing private 2 activity bonds to Select Senior Living of Mounds View. These bonds will be used to construct a 3 95 unit senior housing facility at Groveland and County Highway 10. Final approval to authorize 4 issuance of senior housing revenue bonds is the remaining item for the Council to consider. The 5 anticipated issuance amount is $13,640,000. The City will have no financial obligation to the 6 bondholders and the bonds are not a debt of the City. Staff recommends Council approval 7 Resolution 7672. 8 9 Council Member Stigney questioned the maturity of the bonds and if 40 years was necessary. 10 Scott McLinden, Oppenheimer, indicated this bond issue was estimated to be a 35-year term and 11 could be lengthened if necessary. It was customary to add several years to the request until the 12 bonds were bid and numbers were finalized. He explained there was not much of a difference 13 between the yield on a 25-year bond and a 35-year bond. 14 15 Council Member Stigney asked for further information on the pricing for the memory care and 16 assisted living units. Mr. McLinden reviewed the pricing and explained these units were higher 17 in price due to the level of care needed. Joel Larson, Select Senior Living, stated the memory 18 care units were $4,800 per month which was based on the amount of care needed per resident. 19 Medicaid paid for a large portion of this expense. 20 21 Council Member Stigney questioned if there was an established timeline within the regulatory 22 document. Mary Dyrseth , Kennedy & Graven, indicated the qualified project time was 15 years 23 or the first day in which the bonds are no longer outstanding. 24 25 Council Member Mueller requested the documentation reflect that the Trustee will manage the 26 bonds and not City staff. She then questioned if an independent senior could live within the 27 development or if a unit required a certain level of assistance. Mr. Larson explained there would 28 be independent living units for seniors that do not require care extra care or meals. These units 29 include one meal a day and light housekeeping. 30 31 Council Member Mueller asked for clarification on the differences between the Select Senior 32 Living development and a nursing home. Ms. Dyrseth indicated a nursing home has nursing staff 33 available 24 hours a day, which this development would not. 34 35 Council Member Mueller questioned how many non-related people could live in one unit. Mr. 36 Larson explained there was age restrictions for the development and only two people could live 37 in a unit, however a studio was intended for one person. 38 39 Council Member Stigney requested that the facility not be allowed to stack waiver clientele into 40 units. Ms. Dyrseth noted she would add this language. 41 42 Mayor Flaherty asked why there was a difference in the bonding amount requested for the 43 development. Ms. Dyrseth stated there was a bit of leeway written into the resolution so as not to 44