HomeMy WebLinkAbout16-058 McKenna Crossing Bond Refunding
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 16-058
RESOLUTION CALLING FOR A PUBLIC HEARING ON APPROVING THE ISSUANCE OF, AND GIVING HOST
APPROVAL TO THE ISSUANCE OF SENIOR HOUSING REVENUE REFUNDING NOTES TO REFINANCE A
PROJECT BY SHEPHERD’S PATH SENIOR HOUSING, INC.
AND AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING
(MCKENNA CROSSING SENIOR HOUSING PROJECT)
Motion By: Thompson Second By: Keeney
WHEREAS, The purpose of Minnesota Statutes, Chapter 462C (the "Act"), is among other things, to confer upon
cities the power to issue revenue bonds to finance projects as defined therein; and
WHEREAS, The City of Prior Lake, Minnesota ("Prior Lake") has received from Shepherd’s Path Senior Housing, Inc.
(the "Borrower"), a Minnesota nonprofit corporation and 501(c)(3) organization, which is an affiliate of
Presbyterian Homes and Services, a Minnesota nonprofit corporation and 501(c)(3) organization, a
proposal that Prior Lake, the City of Mayer, Minnesota, and the City of Hampton, Minnesota each
undertake a program to assist in refinancing, among other things, a Project described in Exhibit A, which
is located in Prior Lake, through the issuance of revenue notes or obligations (in one or more series) (the
"Notes") pursuant to the Act; and
WHEREAS, The City of Prior Lake has been advised that a public hearing and City Council approval of the refinancing
of the Project is required under the Act and Section 147(f) of the Internal Revenue Code of 1986, as
amended.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as
follows:
1. The recitals set forth above are incorporated herein.
2. A public hearing on the proposal of the Borrower will be held at the time and place set forth in the attached Notice
of Public Hearing. The general nature of the Project and an estimate of the aggregate principal amount of the
Notes or other obligations to be issued to refinance the Project are described in the Notice of Public Hearing.
3. The City Manager is hereby authorized and directed to cause notice of the hearing to be given one publication in
the official newspaper and newspaper of general circulation available in the City, not less than 15 days nor more
than 30 days prior to the date fixed for the hearing, substantially in the form of the attached Notice of Public
Hearing.
PASSED AND ADOPTED THIS 25th DAY OF APRIL, 2016.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
EXHIBIT A
NOTICE OF PUBLIC HEARING ON A
PROPOSAL FOR ISSUANCE OF SENIOR HOUSING REVENUE REFUNDING NOTES
(MCKENNA CROSSING SENIOR HOUSING PROJECT)
Notice is hereby given that the City Council of the City of Prior Lake, Minnesota (the "City"), will meet
in City Council chambers at the Prior Lake City Hall, 4646 Dakota Street SE, in the City, at 7:00 p.m. on
Monday, May 23, 2016, to consider approving, and giving host approval to, the issuance by the City, the City
of Mayer, Minnesota ("Mayer"), and the City of Hampton, Minnesota ("Hampton", and together with the City
and Mayer, the "Issuers") of revenue obligations, in one or more series, under Minnesota Statutes, Chapter
462C (the "Act"), in order to refinance the cost of a project located in the City, pursuant to an existing housing
program (the "Housing Program") and a joint powers agreement with the Issuers.
Shepherd’s Path Senior Housing, Inc. (the "Borrower"), a Minnesota nonprofit corporation and
501(c)(3) organization, which is an affiliate of Presbyterian Homes and Services, a Minnesota nonprofit
corporation and 501(c)(3) organization, proposes to refinance a Project consisting of refunding the
outstanding principal amount of the City’s $21,445,000 Senior Housing Revenue Bonds (Shepherd’s Path
Senior Housing, Inc. Project) Series 2006B, and the Economic Development Authority of the City of Prior
Lake $10,000,000 Senior Housing Revenue Bonds (Shepherd’s Path Senior Housing Project) Series 2006A,
the proceeds of which were used to finance the acquisition, construction, and equipping of an elderly housing
development of 154 senior rental housing units including 82 independent housing units, 54 assisted living
units, and 18 memory care units, together with approximately 35,000 square feet of common space, located
adjacent to the Shepherd of the Lake Lutheran Church located at 13760 McKenna Road in the City (the
“Project”). The Project, known as McKenna Crossing, is and will be owned and operated by the Borrower.
The total maximum aggregate estimated principal amount of notes or other obligations to be issued
by the Issuers is $26,000,000.
The obligations, as and when issued, will not constitute a charge, lien, or encumbrance upon any
property of the City or the Issuers, except the Project and the revenues to be derived from the Project. Such
notes or obligations will not be a charge against the City's or the Issuers' general credit or taxing powers but
are payable from sums to be paid by the Borrower pursuant to a revenue agreement.
At the time and place fixed for the public hearing, the City Council of the City will give all persons
who appear at the hearing an opportunity to express their views with respect to the proposal. Written
comments will be considered if submitted at the above City office on or before the date of the hearing.
BY ORDER OF THE CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA
By Frank Boyles
Its City Manager