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REQUEST FOR ACTION <br />TO ITEM NUMBER <br />Ma or & Ci Council 6.3. <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Administration Se tember 19, 2011 Tim Simon, Finance Director <br />ITEM DESCRIPTION REVIEWED By <br />Resolution Authorizing the Issuance and Sale of Revenue Robert Thistle, Interim City <br />Bonds, Series 2011 (Evans Park Inc. Project) -Public Hearing Administrator <br /> REVIEWED B <br />ACTION REQUESTED <br />The City Council is asked to adopt a resolution authorizing the issuance and sale of revenue bonds, series <br />2011 (Evans Park Inc. Project) <br />BACKGROUND/DISCUSSION <br />On August 12, 2011, Evans Park Inc. made application to the City for conduit bonding for approximately <br />$3.8 million for the acquisition, construction, and equipping of a 30-unit memory care addition and <br />certain other capital improvements to the existing 60-unit assisted living facility. In 1998, the City issued <br />conduit bonding to build the 60-unit assisted living facility. As a result, the applicant is very familiar with <br />the conduit bonding process. <br />On September 6, 2011, the City Council approved a resolution calling for a public hearing on the issuance <br />of revenue bonds and ratifying the publication of a notice of hearing. These bonds will be special, limited <br />obligation of the City, and no holder of any bond will ever have the right to compel any exercise of the <br />taxing power of the City to pay the Bonds or the interest. Most recently the City has issued conduit <br />bonding for the following projects: Dove Tree Apartments (2010), Metal Craft (2008) and Birchwood <br />Apartments (2007). <br />FINANCIAL IMPACT <br />It is important to reemphasize that there will be no impact to the City, since this request is for a revenue <br />bond (conduit financing), with the City not having to pledge any considerations for its debt payment. In <br />addition, Guardian Angels of Elk River has paid an initial $5,000 application fee. Consistent with the <br />City's Conduit Bonding Policy, the City will also require one percent of the issuance amount of the bonds <br />be paid at closing to the City's Development Fund, and all out-of-pocket expenses for legal fees to <br />underwrite the bond will be paid by the applicant. <br />ATTACHMENTS <br />Resolution authorizing the issuance and sale of revenue bonds, series 2011 (Evans Park Inc. <br />Project) <br />Action Motion by Second by Vote <br />N:\Public Bodies\City Council\Council RCA\Agenda Packet\09-19-2011\GuazdianAngleconduitbondsissuance[1].docx <br />