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City of Mounds View Staff Report <br />Item No: 7.B. <br />Meeting Date: July 8, 2013 <br />Type of Business: Council Busine s <br />Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 8118 Authorizing the Issuance and Sale of <br />Healthcare Facility Revenue Bonds, Series 2013 (Apple Tree <br />Dental Projects) <br />Background: <br />The City Council was presented with a proposal at the June 2012 work session by Apple Tree <br />Dental to use conduit debt financing to finance the acquisition, construction and equipping of an <br />approximately 16,000 square foot building located at 2442 County Road 10 in the City to be <br />used as a new clinic and headquarters facility. Additional items have been added to the project <br />to include the acquisition, construction and equipping of an existing approximately 6,000 square <br />foot clinic and office facility located at 210 Wood Lake Drive in Rochester, Minnesota and <br />refinance existing indebtedness incurred in connection with the clinic facility located at 520 Main <br />Street in Hawley, Minnesota. The preliminary note amount approved in Resolution 8027 on <br />November 26, 2012 was $8,500,000 to facilitate the above. As the process of finding a bank <br />proceeded the total amount to be financed by a bank thru direct purchase of the conduit bonds <br />has changed and is now at a not to exceed amount of $4,500,000. The MN Housing Fund and <br />Nonprofit Assistance Fund will provide the remaining funding along with the equipment <br />manufacturer. The City will receive a 1 % issuance fee for the use of the City's lending <br />authority. The City Council has been supportive of moving forward with use of conduit debt <br />financing thru passage of resolution 8027 which gave preliminary approval. The Council has <br />also subsequently approved a PUD amendment for the building at 2442 County Road 10. <br />Discussion: <br />This is the final approval needed to move forward with issuing the Health Care Facility Revenue <br />Bonds. The City will not be obligated for the bonds. The closing on financing is moving toward <br />an end of July or early August date. The City is represented by Jenny Boulton as bond council <br />from Kennedy & Graven. <br />Recommendation: <br />Staff recommends that Council review the information, ask questions and if comfortable <br />approve Resolution 8118. <br />Respectfully submitted, <br />Nark <br />Finance Director <br />