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Eclty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.10 <br /> Agenda Section Meeting Date Prepared by <br /> Consent September 8, 2015 Tim Simon, Finance Director <br /> Item Description Reviewed by <br /> Guardian Angles Health Services,Inc. Conduit Cal Portner, City Administrator <br /> Bond Financing Reviewed by <br /> Action Requested <br /> Adopt,by motion, a resolution authorizing and providing for the issuance and sale of Health Care <br /> Facilities Revenue Bonds in an aggregate principal amount of up to $4,000,000, at the request of <br /> Guardian Angles health Services,Inc., and approving forms of documents required in connection <br /> therewith. <br /> Background/Discussion <br /> On August 3, 2015, the City Council conducted a public hearing and approved the preliminary issuance <br /> of the revenue bonds. <br /> Guardian Angels made an application to the city to issue revenue bonds (conduit financing) in the <br /> amount up to $4,000,000 to renovation,improve, and equip the skilled nursing facility located at 400 <br /> Evans Avenue. Total project cost is estimated at$4.2 million. The project includes,but is not limited o <br /> the following: <br /> ■ Restroom additions <br /> ■ Increasing the number of private rooms <br /> ■ HVAC upgrades <br /> ■ Boiler replacements <br /> ■ Sun room of the main dining area <br /> ■ New nurses'work area <br /> ■ Redesigned dining area <br /> ■ New entry/vestibule <br /> ■ New nourishment area <br /> ■ Replace flooring,windows, roof <br /> City issuance of conduit bonds is a common financing mechanism to allow the use of the tax-exempt <br /> financing. Using the city's ability to issue conduit bonds, the applicant can sell tax-exempt bonds to save <br /> interest costs. Annually, municipalities are granted a bank-qualified exemption for issuance of up to $10 <br /> million in tax-exempt bonds. The city does not guarantee and is not liable for conduit bonds however <br /> they do count against the annual tax exemption. We don't anticipate any bond issues that would be <br /> applied against this exemption for 2015. <br /> All bond documents and resolutions were reviewed by our bond attorney. <br /> POWERED 6T <br /> Template Updoted 4/14 INAMIRE1 <br />