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EOty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 7.1 <br /> Agenda Section Meeting Date Prepared by <br /> Public Hearin s lAugust 3, 2015 Tim Simon, Finance Director <br /> Item Description Reviewed by <br /> Guardian Angels Health Services,Inc. Conduit Cal Portner, City Administrator <br /> Bond Preliminary Approval Reviewed by <br /> Action Requested <br /> Adopt,by motion, a resolution giving preliminary approval for the issuance of revenue bonds in an <br /> aggregate amount up to $4,000,000 at the request of Guardian Angels Health Services,Inc. <br /> Background/Discussion <br /> Guardian Angels has made an application to the city to issue up to $4 million in conduit financing <br /> revenue bonds for renovating,improving, and equipping their skilled-nursing facility located at 400 Evans <br /> Avenue. Total project cost is estimated at$4.2 million. Some of the projects will include: <br /> ■ Restroom additions ■ New nurses'work area <br /> ■ Increasing the number of private rooms ■ Redesigned dining area <br /> ■ HVAC upgrades ■ New entry/vestibule <br /> ■ Boiler replacements ■ New nourishment area <br /> ■ Sun room of the main dining area ■ Replace flooring,windows, roof <br /> Municipal issuance of conduit bonds is a common financing mechanism that allows the use of the tax- <br /> exempt financing by a qualified applicant rather than taxable bonds to save interest costs. Annually, <br /> municipalities are granted a bank-qualified exemption of up to $10 million to issue tax-exempt bonds. <br /> While the city neither guarantees nor is liable for conduit bonds, they do count against the city's $10 <br /> million annual exemption. We don't anticipate any bond issues that would be applied against this <br /> exemption for 2015. <br /> If the preliminary resolution is approved, the final resolution and approval would be on the September 81h <br /> Council meeting. <br /> Financial Impact <br /> None, since conduit bonds are not be secured by a general obligation pledge and the city/HRA/EDA <br /> would not be responsible or liable for debt service payments. The applicant has paid the application fee <br /> and upon closing,will complete the issuance fee. <br /> Attachments <br /> ■ Resolution <br /> ■ Deed application <br /> ■ Comprehensive Statement <br /> POWERED 6T <br /> Template Updoted 4/14 INAMIRE1 <br />