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HomeMy WebLinkAbout2015-31Extract of Minutes of a Meeting of the City Council of the City of Columbia Heights, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held at the City Hall in said City on Monday, the 27th day of April, 2015, at 7:00 p.m. The following members were present: Peterson, Williams, Nawrocki, Murzyn, Jr and Schmitt and the following were absent: None Member Williams introduced the following resolution and moved its adoption: RESOLUTION NO. 2015 -31 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF SENIOR HOUSING FACILITY REVENUE BONDS (CREST VIEW SENIOR COMMUNITIES PROJECT) BY BLAINE, MINNESOTA The motion for the adoption of the foregoing resolution was duly seconded by member Nawrocki, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Williams, Nawrocki, Peterson, Murzyn, Jr and Schmitt and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. 460013NI JSB BL140 -21 RESOLUTION NO. 2015 -31 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF SENIOR HOUSING FACILITY REVENUE BONDS (CREST VIEW SENIOR COMMUNITIES PROJECT) BY BLAINE, MINNESOTA BE IT RESOLVED, by the City Council (the "Council ") of the City of Columbia Heights, Minnesota (the "City ") as follows: Section 1. Description of the Project. (a) Crest View Senior Community at Blaine LLC, a Colorado limited liability company (the "Company ") and Crest View Corporation, a Minnesota nonprofit corporation, (the "Sole Member" and, together with the Company, the "Borrowers "), have proposed that the City of Blaine, Minnesota (the "Issuer ") issue revenue bonds under Minnesota Statutes, Chapter 462C (the "Act "), in one or more series, in an aggregate principal amount not to exceed $64,900,000 (the "Bonds ") to: (i) finance the acquisition, construction, and equipping, by the Company, of an approximately 152 -unit multifamily senior rental housing facility, consisting of 66 senior independent living units, 51 assisted living units, 11 enhanced assisted living units and 24 memory care units and related parking and public improvements to be located at 12016 Ulysses St. NE in the City (the `Blaine Facilities "); (ii) refinance the Sole Member's facilities consisting of Royce Place, a 50 -unit assisted living facility located at 1575 44th Ave. NE, The Boulevard, a 74 -unit senior housing facility located at 4458 Reservoir Blvd. NE, Crest View Lutheran Home, a 122 -unit licensed nursing facility located at 4444 Reservoir Boulevard, and Crest View on 42nd, a 50 -unit assisted living and memory care facility located at 900 - 42nd Avenue NE in the City of Columbia Heights, Minnesota ( "Columbia Heights ") which were previously financed with the proceeds of the Multifamily and Health Care Facilities Revenue Refunding Bonds (Crest View Corporation Projects), Series 2007A (the "Series 2007 Bonds ") issued by the City (the "Columbia Heights Facilities" and, together with the Blaine Facilities, the "Facilities ") (iii) fund necessary reserve funds; (iv) fund capitalized interest and certain working capital expenses; and (v) pay a portion of the costs of issuance related to the Bonds (collectively, the "Project "). The Blaine Facilities will be owned and operated by the Company and the Columbia Heights Facilities will be owned and operated by the Sole Member. (b) The City has been advised that the Bonds or other obligations, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City or the Issuer, except the Facilities and the revenues to be derived from the Facilities. Such Bonds or obligations will not be a charge against the general credit or taxing powers of the City or the Issuer, but are payable from sums to be paid by the Borrowers pursuant to a revenue agreement. Section 2. Recital of Representations Made by the Borrowers. (a) The Borrowers have agreed to pay any and all costs incurred by the City in connection with the issuance of the Bonds, whether or not such issuance is carried to completion, and to pay the City's ongoing administrative fee as provided in the Fee Agreement described below. 2 460013v2 JSB BL140 -21 (b) The Borrowers have represented to the City that no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. Section 3. Public Hearing. (a) As required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code ") a Notice of Public Hearing was published in a newspaper of general circulation in the City, for a public hearing on the proposed issuance of the Bonds to refinance the portion of the Facilities located within the jurisdictional limits of the City. (b) As required by the Act and Section 147(f) of the Code the City Council has on this date held a public hearing on the proposed issuance of the Bonds to refinance the portion of the Facilities located within the jurisdictional limits of the City, at which all those appearing who desired to speak were heard and written comments were accepted. Section 4. Joint Powers Agreement and Fee Agreement. (a) Pursuant to Minnesota Statutes, Section 471.59, as amended, by agreement entered into through action of their governing bodies, two cities 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. Pursuant to a joint powers agreement between the City and the Issuer to be dated on or after May 1, 2015 (the "Joint Powers Agreement "), the City will consent to the issuance of the Bonds and the refinancing of the portion of the Facilities located within the jurisdictional limits of the City by the Issuer and the Issuer will agree to issue the Bonds to finance or refinance the Project. (b) The Borrowers have agreed to pay the City's ongoing administrative fee pursuant to a fee agreement (the "Fee Agreement), to be dated on or after May 1, 2015. (c) The Joint Powers Agreement and the Fee Agreement are hereby approved and the Mayor and the City Manager are hereby authorized to execute and deliver such agreements in substantially the forms on file with the City, together 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 are appropriate and in the best interests of the City, and the execution of the Joint Powers Agreement and the Fee Agreement by the Mayor and the City Manager shall be conclusive evidence of such determination. Section 5. Host Approval. The City Council hereby gives the host approval required under Section 147(f) of the Code, pursuant to Minnesota Statutes §471.656, Subd. 2(2), the City Council hereby consents to the issuance of the Bonds, and pursuant to the Act, the City Council hereby consents to the refunding of the Series 2007 Bonds. This host approval and consent are conditioned upon the execution and delivery by all parties to the Joint Powers Agreement and the Fee Agreement. 3 460013v2.1SB BL 140 -21 Adopted: April 27, 2015 Mayor ATTEST: City Clerk 460013v2 JSB BL 140-21 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS I, the undersigned, being the duly qualified and acting City Clerk of the City of Columbia Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to granting host approval to the issuance of revenue bonds to refinance a senior housing and health care project in the City. WITNESS my hand this 27`" day of April, 2015. City Clerk City of Columbia Heights, Minnesota 460013v2 JSB BL 140 -21