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HomeMy WebLinkAboutResolution 2022-135 Providing Host Approval of Issuance of Obligations St. Therese of Corcoran LLCCITY OF CORCORAN, MINNESOTA RESOLUTION 110.2022-135 RESOLUTION PROVIDING HOST APPROVAL TO THE ISSUANCE OF REVENUE OBLIGATIONS BY THE CITY OF MEDINA, MINNESOTA FOR THE BENEFIT OF SAINT THERESE OF CORCORAN, LLC BE IT RESOLVED by the City Council (the "City Council") of the City of Corcoran, Minnesota the "City"), as follows: Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), a municipality is 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). 1.02. 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 municipality issuing the obligations and the municipality in which the property to be acquired or improved is located. Pursuant to Minnesota Statutes, Section 471.59, as amended, by the terms of a joint powers agreement entered into through action of their governing bodies, two or more municipalities may j ointly 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. Saint Therese of Corcoran, LLC, a Minnesota limited liability company, or any of its affiliates (collectively, the "Borrower"), the sole member of which is Saint Therese Communities, a Minnesota nonprofit corporation (the "Corporation"), has proposed that the City approve the issuance by the City of Medina, Minnesota (the "Issuer") of one or more series of revenue bonds or obligations (the "Bonds") in the maximum estimated principal amount of $10,000,000, pursuant to Act and Minnesota Statutes, Sections 471.59 and 471.656, as amended (the "Joint Powers Act"). The Borrower intends to apply 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 an assigned address of 19800 79th Place, Corcoran, Minnesota, legally described as Lot 1, Block 1, Town Center Addition, Hennepin County, Minnesota 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 Sole Member of which is the Corporation, or another affiliate of the Corporation. 1.04. Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and regulations promulgated thereunder require that, prior to the issuance of the Bonds, the City Council must consent to the issuance of the Bonds by the Issuer after conducting a public hearing thereon preceded by notice of such public hearing (in the form required by Section 147(f) of the Code and applicable regulations) given by publication in a newspaper of general circulation available to the residents of the City or by electronic posting on the City's primary public website in an area of that website used to inform its residents about events affecting residents, within the City at least seven (7) days prior to the public hearing date. 1.05. A notice of public hearing (the "Public Notice") was published at least seven (7) days before the regularly scheduled meeting of the City Council on the date hereof in the Crow River News, a newspaper of general circulation in the City, with respect to the required public hearing under Section 147(fl of the Code. 1.06. On the date hereof, the City Council conducted a public hearing at which a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on providing consent to the issuance of the Bonds by the Issuer pursuant to the requirements of Section 147(f) of the Code and the regulations promulgated thereunder. 1.07. The City and the Issuer are proposing to enter into a Joint Powers Agreement (the "Joint Powers Agreement") pursuant to which the City will consent to the issuance of the Bonds by the Issuer to finance the Project, and the Issuer will agree to issue the Bonds for such purpose, in accordance with the provisions of the Joint Powers Act. Section 2. Approvals. 2.01. The City Council finds that it is in the best interest of the City to approve the issuance of the Bonds by the Issuer to finance the Project and hereby consents to the issuance of the Bonds by the Issuer in the maximum estimated principal amount not to exceed $10,000,000. 2.02. The Mayor and the City Administrator are hereby authorized and directed to execute and deliver the Joint Powers Agreement and any other documents deemed necessary to fulfill the intentions of this resolution. All of the provisions of the Joint Powers Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Joint Powers Agreement shall be substantially in the form on file with the City which is hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Administrator, in their discretion, shall determine, and the execution thereof by the Mayor and the City Administrator shall be conclusive evidence of such determination. 2.03. The Mayor and City Administrator and other officers, employees, and agents of the City are hereby authorized and directed to prepare and furnish to bond counsel and the original purchaser of the Bonds certified copies of all proceedings and records of the City relating to the approval of the issuance of the Bonds, including a certification of this resolution. 2.04. The Borrower shall pay to the City any and all costs paid or incurred by the City in connection with the Bonds or the financing contemplated herein, whether or not the financing is carried to completion, and whether or not the Bonds or operative instruments are executed and delivered. 2.05. This resolution shall be in full force and effect from and after its passage. CR100-24-835482.v1 2 STATE OF MEN NESOTA ss. COUNTY OF HENNEPIN I, the undersigned, being the duly qualified and acting Clerk of the City of Corcoran, Minnesota the "City"), do hereby certify that attached hereto is a compared, true, and correct copy of a resolution granting approval to the issuance of conduit revenue obligations by the City on behalf of Saint Therese of Corcoran, LLC, duly adopted by the City Council of the City on November 10, 2022, at a meeting thereof duly called and held, as on file and of record in my office, which resolution has not been amended, modified, or rescinded since the date thereof, and is in full force and effect as of the date hereof. WITNESS My hand this ay of 1(k�41��2022. Clty erk CR100-24-830837.v3 Adopted by the City Council of the City of Corcoran, Minnesota this loth day of November, 20228 T ATTEST: MichelleV Friedrich, City Clerk ---�.- �- tom? McKee; Mayor CR100-24-835482.v1 3