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Item ~ 4.1. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor and City Council <br /> <br />Lori Johnson, Finance Director <br /> <br />September I 0, 2001 <br /> <br />SUBJECT: <br /> <br />Public Hearing and Resolution Authorizing Execution and Delivery <br />of the Joint Powers Agreement with the Hennepin County Housing <br />and Redevelopment Authority to Finance a Project for Opportunity <br />Partners <br /> <br />Opportunity Partners, a non-profit corporation, owns two group treatment facilities in Elk River <br />along with facilities in Hennepin County. Opportunity Parmers has been working with the <br />Hennepin County Housing and Redevelopment Authority (HCHRA) to refinance and prepay <br />outstanding mortgage loans on its facilities. Because two of the facilities are located in Elk River, <br />the city must hold a public hearing and approve the proposed financing by the HCHRA. <br /> <br />Although I have not had contact from representatives of Opportunity Parmers or the HCHRA <br />regarding this project, I understand that representatives will be at Monday's meeting to provide <br />the Council additonal information and answer any questions you may have. I have been working <br />solely with attorney Steven Likes, representing Opportunity Parmers and HCHRA, on this <br />project. Therefore, I do not have much information on the refinancing other than the fact that <br />two facilities in Elk River are part of the total refinancing. Jim O'Meara, city bond counsel, has <br />thoroughly reviewed this transaction and the related documents on the city's behalf, worked with <br />Mr. Likes to make any changes required by the city, and finds the attacheciJoint Powers <br />Agreement and Resolution to be acceptable. The legal fees associated with this transaction are the <br />responsibility of Opportunity Partners and the HCHRA. A $1,000 escrow was required before <br />this could proceed and that payment has been received. <br /> <br />The refinancing bonds will be issued by the HCHRA and will not affect the City's outstanding <br />debt and the City is in no way responsible for debt service on the bonds. By approving the <br />resolution and entering into the joint powers agreement, the City Council is giving its consent for <br />the HCHRA to issue the revenue bonds that refinance and/or prepay the outstanding mortgage <br />loans on Opportunity Partner facilities. <br /> <br />Action Requested <br />The City Council is asked to hold a public hearing on assisting Opportunity Partners with <br />financing a project that includes two properties in Elk River. Next, the Council is asked to act on <br />the resolution authorizing the execution and delivery of a joint powers agreement with the <br />HCHRA to finance a project for Opportunity Parmers. <br /> <br />s:\council~oppurpartjpa.doc <br /> <br /> <br />