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HomeMy WebLinkAbout26-138 Giving Host Approval to the Issuance of the City of Mayer, Minnesota, Senior Housing Revenue Note 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-138 A RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF THE CITY OF MAYER, MINNESOTA, SENIOR HOUSING REVENUE NOTE (MCKENNA CROSSING EXPANSION PROJECT), SERIES 2026A, AND THE CITY OF MAYER, MINNESOTA, SENIOR HOUSING REVENUE NOTE (MCKENNA CROSSING EXPANSION PROJECT), SERIES 2026B, AND APPROVING A HOUSING PROGRAM AND JOINT POWERS AGREEMENT Motion By: Lake Second By: Hellier WHEREAS, WHEREAS, WHEREAS, WHEREAS, Minnesota Statutes, Chapter 462C, as amended (the “Act”), gives municipalities the power to issue revenue obligations for the purpose of financing a program for the purposes of planning, administering, making or purchasing loans with respect to a multifamily housing facility for the elderly and to enter into agreements necessary or convenient in the exercise of powers granted by the Act; and Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the obligations are issued under a joint powers agreement between the municipality issuing the obligations and the municipality in which the property to be acquired or improved is located. Pursuant to Minnesota Statutes, Section 471.59, as amended, by the terms of a joint powers agreement entered into through action of their governing bodies, two or more municipalities may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised and the joint powers agreement may provide for the exercise of such powers by one or more of the participating governmental units on behalf of the other participating units; and the City of Prior Lake, Minnesota (“Prior Lake” or the “Host City”), has received from Shepherd’s Path Senior Housing, Inc., a Minnesota nonprofit corporation (the “Borrower”), which is an affiliate of Presbyterian Homes and Services, a Minnesota nonprofit corporation, and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), a proposal that the City of Mayer, Minnesota (the “Issuer”), undertake a housing finance program (the “Housing Program”) to finance the Project (as defined below) through the issuance of revenue notes, revenue bonds, or other obligations, in one or more series, pursuant to the Act and, in connection with that proposal, the Issuer is to issue the City of Mayer, Minnesota Senior Housing Revenue Note (McKenna Crossing Expansion Project), Series 2026A (the “Series 2026A Note”), and the City of Mayer, Minnesota Senior Housing Revenue Note (McKenna Crossing Expansion Project), Series 2026B Note (the “Series 2026B Note” and, together with the Series 2026A Note, the “Notes”), in an aggregate principal amount not to exceed $30,000,000; and the project to be financed by the Notes consists of (i) the construction, improvement, and equipping of a physical expansion that adds 72 independent living units (the “Addition”) to McKenna Crossing, an existing senior living facility located at 13810 Shepherds Path NW in Prior Lake (the “Existing Facility” and, together with the 2 WHEREAS, WHEREAS, WHEREAS, WHEREAS, Addition, the “Facility”), (ii) the funding of any required reserve funds, (iii) the payment of any capitalized interest, and (iv) the costs of issuing the Notes (collectively, the “Project”). The Facility will be owned and operated by the Borrower; and pursuant to the Act, Minnesota Statutes, Sections 471.59 and 471.656, as amended, and Section 147(f) of the Code, a public hearing on the Housing Program, the proposal to undertake and finance the Project located within the jurisdictional limits of Prior Lake, and the proposed issuance of the Notes by the Issuer was held by the City Council of Prior Lake this same date, following duly published notice, at which time all persons who desired to speak were heard; at which all those appearing who desired to speak were heard and written comments were accepted; and Prior Lake has been advised that the Notes, as and when issued, will not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of Prior Lake or the Issuer, except the revenues to be derived from one or more loan agreements to be entered into between the Issuer and the Borrower. Such Notes will not give rise to a pecuniary liability of Prior Lake or the Issuer or be a charge against the general credit or taxing powers of Prior Lake or the Issuer, but are payable only from sums to be paid by the Borrower pursuant to the loan agreements; and Prior Lake and the Issuer are proposing to enter into a Joint Powers Agreement (the “Joint Powers Agreement”) pursuant to which Prior Lake will consent to the issuance of the Notes by the Issuer to finance the Project and the adoption of the Housing Program by the Issuer, and the Issuer will agree to issue the Notes to finance the Project; and the Borrower has agreed to pay any and all costs incurred by Prior Lake in connection with the issuance of the Notes, whether or not such issuance is carried to completion. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. Host Approval. The City Council hereby gives the host approval required under Section 147(f) of the Code and, pursuant to Minnesota Statutes, Section 471.656, Subd. 2(2), the City Council hereby consents to the issuance of the Notes by the Issuer. The Housing Program is hereby approved. 2. Joint Powers Agreement. The Mayor and the City Manager are hereby authorized and directed to execute and deliver the Joint Powers Agreement and any other documents deemed necessary to fulfill the intentions of this resolution. All of the provisions of the Joint Powers Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Joint Powers Agreement shall be substantially in the form on file with the City which is hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determination. 3. Electronic Signatures Authorized. The execution of any instrument by the appropriate officer or officers of the City herein authorized may be by electronic signature if such an option is available and shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. For purposes of this paragraph: (i) “electronic signature” means a manually signed original signature, an electronic image of a handwritten signature, or a digital signature provided by DocuSign, Adobe Sign, or any other electronic signature provider 3 acceptable to the parties, which in each case is transmitted by electronic means; and (ii) ”transmitted by electronic means” means sent in the form of a facsimile or sent via the internet as a PDF (i.e. portable document format) or other replicating image attached to an electronic mail or internet message. Passed and adopted by the Prior Lake City Council this 22nd day of September 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ _______________________ Jason Wedel, City Manager