City Council Resolution 2008-42CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2008-42
RESOLUTION CALLING FOR A PUBLIC HEARING ON AN ISSUE OF REVENUE BONDS
ON BEHALF OF PRESBYTERIAN HOMES
BE rr RESOLVED by the City Council (the "Council') of the City of Monticello, Minnesota (the
"City"), as follows:
WHEREAS, Minnesota Statutes, Chapter 462C, as amended (the "Act"), authorizes and
empowers municipalities of the State of Minnesota to issue and sell revenue bonds and lend the proceeds
thereof to a nonprofit corporation for the purpose of providing financing or refinancing for the acquisition
and construction of housing developments authorized thereby; and
WHEREAS, at the request of Presbyterian Homes Housing and Assisted Living, Inc. (now known
as PHS/Monticello, Inc.), a Minnesota nonprofit corporation (the "Monticello Borrower'), the City
previously issued its Senior Housing Revenue Bonds (Mississippi Shores Project), Series 1995 (the
"Series 1995 Bonds'), the proceeds of which were applied to the acquisition, construction, and equipping
of a 49 unit senior housing facility known as Mississippi Shores located at 1213 Hart Boulevard in the
City (the "Monticello Project"}; and
WHEREAS, at the request of the Borrower, the City previously issued its Senior Housing
Refunding Revenue Bond (Mississippi Shores Project), Series 2002 (the "Series 2002 Bond"), the
proceeds of which were applied to refinance the Monticello Project by redeeming and prepaying the
Series 1995 Bonds; and
WHEREAS, the City of Bloomington ("Bloomington ") has proposed to issue one or more series
of revenue obligations and loan the proceeds derived from the sale of the obligations to the borrowers
referenced herein used to be used as follows: (i) refinance certain capital assets, through the redemption
of outstanding bonds that financed those assets, including: (a) the Monticello Project; (b) an 88 unit
senior housing facility known. as Summerhouse of Bloomington located at 9850 Lyndale Avenue South,
Bloomington, Minnesota (the `Bloomington Project") owned by Presbyterian Homes of Bloomington,
Inc. (the `Bloomington Borrower"); (c) a 100 -unit senior housing facility known as Echo Ridge located at
11033 Gerschwin Avenue North, Oakdale, Minnesota (the "Oakdale Project') owned by PHS /Oakdale,
Inc.(the "Oakdale Borrower"); (d) a 72 -unit senior housing facility known as Summerhouse of Shoreview
located at 4655 Victoria Street, Shoreview, Minnesota (the "Shoreview Project ") owned by
PHS /Shoreview, Inc. (the "Shoreview Borrower' 1; and (e) a 77 -unit senior housing facility known as
Stonecrest located at 8723 Promenade Lane, Woodbury, Minnesota (the "Woodbury Project") owned by
PHS/Woodbury, Inc. (the "Woodbury Borrower"); and (ii) pay the costs of issuing the Bonds; and
WHEREAS, the Borrower has advised this Council that it has requested that Bloomington issue
revenue bonds pursuant to the Act in an aggregate principal amount which is not expected to exceed
$37,105,000 (the `Bonds'] for the purposes described above; and
WHEREAS, approximately $3,330,000 of the proceeds of the Bonds is expected to be allocated
to the Monticello Project, approximately $8,625,000 of the proceeds of the Bonds is expected to be
allocated to the Bloomington Project, approximately $9,025,000 of the proceeds of the Bonds is expected
to be allocated to the Oakdale Project, approximately $6,920,000 of the proceeds of the Bonds is expected
to be allocated to the Shoreview Project, and approximately $9,205,000 of the proceeds of the Bonds is
expected to be allocated to the Woodbury Project; and
WEEREAS, since a portion of the facilities proposed to be refinanced by the Bonds are located in
the City, Section 147(0 of the Internal Revenue Code of 1986, as amended, and regulations promulgated
thereunder require that, prior to the issuance of the Bonds, this Council approve the issuance of the Bonds
by Bloomington, after conducting a public hearing thereon; and
NOW, T IEREFORE, BE iT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MONTICELLO, MINNESOTA:
1. A public hearing on the proposal that Bloomington issue the Bonds to refinance the
Projects is hereby called, and such meeting shall be held on Monday, June 23, 2008, at 7:00 P.M., at City
Hall; and
2, The City Administrator shall cause notice of the public hearing, in substantially the form
attached hereto as Exhibit A. to be published in the official newspaper of the City and a newspaper of
general circulation in the City, oncc not less than 14 days prior to the date fixed for the public hearing.
Adopted by the City Council of the City of Monticello on this 27th day of May, 2008.
K
Mayor
EXHIBIT A - Notice of Public hearing
NOTICE OF PUBLIC HEARING BY THE CITY OF MONTICELLO'S
M M4ESOTA WITH RESPECT TO GRANTING HOST CITY
APPROVAL TO THE ISSUANCE OF REVENUE REFUNDING BONDS
TO REFINANCE A SENIOR HOUSING FACILITY LOCATED IN
MONTICELLO
NOTICE IS HEREBY GIVEN that the City Council (the "Council ) of the City of Monticello, Minnesota
(the "City'l, will hold a public hearing on Monday, June 23, 2008, on or after 7:00 p.m. at 505 Walnut Avenue in
the City for the purpose of conducting a public hearing on a proposal that the City approve and authorize the
issuance by the City of Bloomington, Minnesota ( "Bloomington'j of its Variable Rate Demand Senior Housing
Revenue Refunding Bonds (Presbyterian Homes Projects), Series 2008, (the `Bonds ") in one or more series in an
aggregate principal amount not to exceed $37,105,000 under Minnesota Statutes, Sections 462C, as amended (the
"Act's
The proceeds of the Bonds will be loaned to the borrowers referenced herein and used to: (i) refinance
certain capital assets through the redemption of outstanding bonds that financed those assets, including: (a) an
88 -unit senior housing facility known as Summerhouse of Bloomington located at 9850 Lyndale Avenue South,
Bloomington, Minnesota (the "Bloomington Project") owned by Presbyterian Homes of Bloomington, Inc. (the
"Bloomington Borrower') and financed with the proceeds of the Senior Housing Revenue Bonds (Summerhouse
of Bloomington Project) Series 1998 issued by the Housing and Redevelopment Authority in and for the City of
Bloomington, Minnesota in the original aggregate principal amount of $8,750,000; (b) a49-unit senior housing
facility known as Mississippi Shores located at 1213 Hart Boulevard, Monticello, Minnesota (the "Monticello
Project ") owned by PHS/Monticello, Inc. (the "Monticello Borrower') and refinanced with the proceeds of the
Senior Housing Refunding Revenue Bond (Mississippi Shores Project) Series 2002, issued by the City of
Monticello in the original aggregate principal amount of $3,000,000; (c) a 100 -unit senior housing facility known
as Echo Ridge located at 11033 Gerschwin Avenue North, Oakdale, Minnesota (the "Oakdale Project') owned by
PHS /Oakdale, Inc. (the "Oakdale Borrower'l and financed with the proceeds of the Elderly blousing Revenue
Bonds, Series 1998 (PHM/Oakdale, Inc. Project), issued by the City of Oakdale in the original aggregate principal
amount of $8,150,000 and the Elderly Housing Revenue Note, Series 1998 (PHMIOakdale, Inc. Project), issued
by the City of Oakdale in the original aggregate principal amount of $300,000; (d) a 72 -unit senior housing
facility known as Summerhouse of Shoreview Iocated at 4655 Victoria Street, Shoreview, Minnesota (the
"Shoreview Project") owned by PHS/Shoreview, Inc. (the "Shoreview Borrower"} and financed with the proceeds
of the Elderly Housing Revenue Bonds (PHWShoreview, Inc. Project), Series 1998, issued by the City of
Shoreview in the original aggregate principal amount of $6,270,000; and (e) a 77 unit senior housing facility
known as Stonecrest located at 8723 Promenade Lane, Woodbury, Minnesota (the "Woodbury Pmject") owned
by PHS/Woodbury, Inc. (the "Woodbury Borrower') and financed with the proceeds of the Senior Housing
Revenue Bonds, Series 1999 (Summerhouse of Woodbury Project) issued by the City of Woodbury in the original
aggregate principal amount of $8,950,000 and the Senior Housing Revenue Note Series 1999 (Summerhouse of
Woodbury Project), issued by the City of Woodbury in the original aggregate principal amount of $300,000; and
(ii) pay the costs of issuing the Bonds and other related costs of the Projects. The Bloomington Project, the
Monticello Project, the Oakdale Project, the Shoreview Project, and the Woodbury Project are referred to
collectively as the "Projects." The Bloomington Borrower, the Monticello Borrower, the Oakdale Borrower, the
Shoreview Borrower, and the Woodbury Borrower are referred to collectively as the `Borrowers."
Approximately $8,625,000 of the proceeds of the Bonds is expected to be allocated to the Bloomington
Project. Approximately $3,330,000 of the proceeds of the Bonds is expected to be allocated to the Monticello
Project. Approximately $9,025,000 of the proceeds of the Bonds is expected to be allocated to the Oakdale
Project. Approximately $6,920,000 of the proceeds of the Bonds is expected to be allocated to the Shoreview
Project. Approximately $9,205,000 of the proceeds of the Bonds is expected to be allocated to the Woodbury
Project.
Following the public hearing, the City will consider adoption of a resolution (i) giving approval to the
issuance of the Bonds by Bloomington pursuant to the Act; and (ii) authorizing the execution and delivery by the
City of a cooperation agreement with the Cities of Bloomington, Oakdale, Shoreview and Woodbury with respect
to the issuance of the Bonds.
The Bonds will be special, limited obligations of Bloomington and the Bonds and interest thereon will be
payable solely from the revenues and assets pledged to the payment thereof No revenue Bonds will be issued by
the City. No holder of the Bonds will ever have the right to compel any exercise of the taxing powers of the City,
to pay the Bonds or the interest thereon, not to enforce payment against any property of the City. Before issuing
the Bonds, Bloomington will enter into an agreement with each of the Borrowers, whereby each of the Borrowers
will be obligated to make payments at least sufficient at all times to pay the principal of and interest on the portion
of the Bonds allocated to their respective Prnj ect when such payments due.
Anyone desiring to be heard during this public hearing will be afforded an opportunity to do so.
Dated [Date of Publication]
CITY OF MONTICELLO, MINNESOTA