8.1. SR 09-06-2011 - Laserfiche WebLink

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REQUEST FOR ACTION TO ITEM NUMBER Ma or & Ci Council AGENDA SECTION MEETING DATE PREPARED BY Administration Se tember 6, 2011 Tim Simon, Finance Director ITEM DESCRIPTION REVIEWED By Resolution Calling for a Public Hearing on the Issuance of Robert Thistle, Interim City Revenue Bonds and Ratifying the Publication of a Notice of Administrator Hearing (Guardian Angel Project) REVIEWED BY ACTION REQUESTED The City Council is asked to adopt a resolution calling for a public hearing on the issuance of revenue bonds and ratifying the publication of a notice of hearing (Guardian Angel project). BACKGROUND/DISCUSSION On August 12, 2011, Evans Park Inc. made application to the City for conduit bonding for approximately $3.8 million for the acquisition, construction, and equipping of a 30-unit memory care addition and certain other capital improvements to the existing 60-unit assisted living facility. In 1998, the City issued conduit bonding to build the 60-unit assisted living facility. As a result, the applicant is very familiar with the conduit bonding process. Adoption of the attached resolution will allow for a public hearing to be held on September 19, 2011 at or after 6:30 p.m. to consider the City to authorize the issuance of revenue bonds. These bonds will be special, limited obligation of the City, and no holder of any bond will ever have the right to compel any exercise of the taxing power of the City to pay the Bonds or the interest. Most recently the City has issued conduit bonding for the following projects: Dove Tree Apartments (2010), Metal Craft (2008), and Birchwood Apartments (2007). FINANCIAL IMPACT It is important to reemphasize that there will be no impact to the City, since this request is for a revenue bond (conduit financing), with the City not having to pledge any considerations for its debt payment. In addition, Guardian Angels of Elk River has paid an initial $5,000 application fee. Consistent with the City's Conduit Bonding Policy, the City will also require one percent of the issuance amount of the bonds be paid at closing to the City's Development Fund, and all out-of-pocket expenses for legal fees to underwrite the bond will be paid by the applicant. ATTACHMENTS • Resolution calling for a public hearing on the issuance of revenue bonds and ratifying the publication of a notice of hearing (Guardian Angel project) • Notice of public hearing Action Motion by Second by Vote N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\09-06-2011\GuardianAngleconduitbonds[1].doc