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HomeMy WebLinkAboutResolution 2022-130 Calling for Public Hearing or the Purpose of Providing Host ApprovalCity of Corcoran County of Hennepin State of Minnesota RESOLUTION NO. 2022-13U Motion By: Nichols Seconded By: Bottema October 21, 2u22 Resolution Calling for a Public Hearing or the Purpose of Providing Host Approval for the Issuance of Conduit Revenue Bonds for the Benefit of Saint Therese of Corcoran, LLC., and Authorizing the Publication of a Notice of the Hearing (Saint Therese Of Corcoran Project) WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), municipalities are authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance multifamily housing developments (including facilities that are a combination of multifamily housing developments and health care facilities); and WHEREAS, Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the obligations are issued under a joint powers agreement between the municipalities issuing the obligations and the municipality in which the property to be acquired or improved is located. Pursuant to Minnesota Statutes, Section 471.597 as amended, by the terms of a joint powers agreement entered into through action of their governing bodies, two or more municipalities may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised and the joint powers agreement may provide for the exercise of such powers by one or more of the participating governmental units on behalf of the other participating units; and WHEREAS, the City of Corcoran, Minnesota (the "City"), has received from Saint Therese of Corcoran, LLC, a Minnesota nonprofit limited liability company, or an affiliate thereof Or entity related thereto (the "Borrower"), whose sole member is Saint Therese Communities, a Minnesota nonprofit corporation and tax exempt organization pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, (the "Corporation"), a proposal that the City provide host approval for the issuance of conduit revenue bonds (in one or more series) (the "Bonds") by one or more cities, as defined by Section 462C.02, subdivision 6 of the Act, to be selected by the Borrower (the "Issuer"), pursuant to the Act, Minnesota Statutes, Sections 171.59 and 471.656, as amended (the "Joint Powers Act"), and the Internal Revenue Code of 1986, as amended (the "Code"); and WHEREAS, the proceeds of the Bonds will be loaned by the Issuer to the Borrower to (i) finance the acquisition, construction and equipping of a senior living campus including approximately 99 independent living apartments, 34 assisted living apartments and 20 memory care apartments, and related common areas, facilities, infrastructure improvements, and amenities, to be located on approximately 13 acres south of City Hall with a current address of 8200 County Road Number 116, legally described as Lot 1, Block 1, Town Center Addition, near the northeast intersection of County Road 10 and County Road 116 (Fletcher Lane) (the "Project"); (11) fund all or a portion of the capitalized interest for the Bonds, if necessary; (III) fund a debt service reserve for the Bonds, if necessary; and (iv) pay the costs of issuance for the Bonds. The Project will be owned and operated by the Borrower, and Page 1 of 2 City of Corcoran County of Hennepin State of Minnesota RESOLUTION NO. 2022-130 October 27, 2022 WHEREAS, the City has been advised that a public hearing and City Council approval of the financing of the Project are needed under the Act, the Joint Powers Act and Section 147(f) of the Code because the facilities to be financed by the Bonds are located in the City; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Corcoran) Minnesota, as follows: 1. A public hearing on the proposal of the Borrower will be held at the time and place selected by the City Administrator. Notice of such hearing (the "Public Notice") will be published and/or posted as required by Section 147(f) of the Code. 2. Kennedy & Graven, Chartered, as bond counsel to the City ("Bond Counsel"), is hereby authorized and directed to publish the Public Notice, in substantially the form attached hereto as EXHIBIT A with such changes as approved by city staff, in the official newspaper of the City and in a newspaper of general circulation in the City or post the Public Notice on the City's website, at least 7 days before the meeting of the City Council at which the public hearing will take place. 3. The Borrower will pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the proposed financing whether or not the Bonds are issued. VOTING AYE ® McKee, Tom ® Bottema, Jon ® Nichols, Jeremy ❑ Schultz, Alan ® Vehrenkamp, Dean VOTING NAY ❑ McKee, Tom ❑ Bottema, Jon ❑ Nichols, Jeremy ❑ Schultz, Alan ❑ Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 27"d day of October, 2022. ATTEST: Michele Friedrich -City Clerk Page 2 of 2 ��- om McKee -Mayor City Seal STATE OF MINNESOTA ) COUNTIES OF HENNEPIN ) SS. CITY OF CORCORAN ) I, the undersigned, being the duly qualified and acting City Clerk of the City %J Corcoran, Hennepin County, Minnesota (the "city"), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council held on October 275 2022 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance of conduit revenue bonds for a project in the City. WITNESS my hand officially as such City Clerk this � day of October, 2022. NOTICE OF A PUBLIC HEARING TO BE CONDUCTED BY THE CITY OF CORCORAN WITH RESPECT TO THE ISSUANCE OF CONDUIT REVENUE OBLIGATIONS BY THE CITY OF FOR THE BENEFIT OF SAINT THERESE OF CORCORA,N, LLC Notice is hereby given that the City Council of the City of Corcoran, Minnesota (the "City") will hold a public hearing at the Corcoran City Hall, located at 8200 County Road 116 in the City ("City Hall"), at 7:00 p.m. on [ 2022 to consider a proposal that the City grant host city approval to the issuance by the City of , Minnesota (the "Issuer") of conduit revenue obligations, in one or more series (the Bonds"), under Minnesota Statutes, Chapter 462C, as amended, and Minnesota Statutes, Sections 471.59 and 471.656, as amended, (the "Act"), in order to finance the cost of a project located in the City. Saint Therese of Corcoran, LLC, a Minnesota nonprofit limited liability company (the "Borrower"), whose sole member is Saint Therese Communities, a Minnesota nonprofit corporation and tax exempt organization pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or an affiliate thereof or entity related thereto (the "Corporation") proposes to use the proceeds of the Bonds to (1) finance the acquisition, construction and equipping of a senior living campus including approximately 99 independent living apartments, 34 assisted living apartments and 20 memory care apartments, and related common areas, facilities, infrastructure improvements, and amenities, to be located on approximately 13 acres south of City Hall with a current address of 8200 County Road Number 116, legally described as Lot 1, Block 1, Town Center Addition, near the northeast intersection of County Road 10 and County Road 116 (Fletcher Lane) (the "Project"); (11) fund all or a portion of the capitalized interest for the Bonds, if necessary; (111) fund a debt service reserve for the Bonds, if necessary; and (iv) pay the costs of issuance for the Bonds. The Project will be owned by the Borrower and managed by Saint Therese Management Services, LLC, a Minnesota limited liability company (the "Manager"), the Sole Member of which is the Corporation, or another affiliate of the Corporation. The maximum estimated principal amount of the Bonds or other obligations to be issued to finance the Project is $10,000,000. The Bonds will be special, limited obligations of the Issuer, and the Bonds and interest thereon will be payable solely from the revenues and assets pledged to the payment thereof. No holder of any Bonds will ever have the right to compel any exercise of the taxing power of the City to pay the Bonds or the interest thereon, nor to enforce payment against any property of the city. The Bonds are to be payable solely from revenues and security provided by the Borrower and pledged to the payment of the Bonds. At the time and place fixed for the public hearing, the City Council will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. Written comments will be considered if submitted at City Hall on or before the date of the hearing. [Publish , 2022]