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HomeMy WebLinkAboutResolution No. 2018-112 Issuance of Bethel Revenue Bonds CITY OF EDINA, MINNESOTA RESOLUTION NO. 2018-112 RESOLUTION CONSENTING TO AND APPROVING THE ISSUANCE BY THE CITY OF BETHEL OF REVENUE OBLIGATIONS TO REFINANCE A PROJECT LOCATED IN THE CITY OF EDINA AND TAKING OTHER ACTIONS WITH RESPECT THERETO WHEREAS, the City of Edina, Minnesota (the "City") is a statutory city and political subdivision duly organized and existing under the laws of the State of Minnesota; and WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), a municipality is authorized to issue revenue bonds to finance or refinance developments consisting of multifamily housing and new or existing health care facilities (including assisted living and memory care facilities); and WHEREAS, Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue obligations to finance or refinance 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; and WHEREAS, 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 WHEREAS, Walker Assisted Living Corporation I, a Minnesota nonprofit corporation ("Walker Assisted Living"), and Walker Senior Housing Corporation 111, a Minnesota nonprofit corporation ("Walker Senior Housing," and together with Walker Assisted Living, the "Borrower"), have proposed that the City of Bethel, Minnesota (the "City of Bethel") issue its revenue obligations (the "Bonds"), in one or more series, as taxable or tax-exempt obligations, in an aggregate principal amount not to exceed $19,500,000, under the provisions of the Act and Minnesota Statutes, Sections 471.59 and 471.656, as amended, and loan the proceeds thereof to the Borrower to, among other- things, (i) refinance a Fannie Mae loan provided to Walker Assisted Living and the associated prepayment premium for Walker Assisted Living's 72-unit senior assisted living and memory care facility located at 7400 York Avenue South in the City (the "Edina Facility"); and (ii) finance capital improvements to the Edina Facility; and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and regulations promulgated thereunder require that prior to the issuance of the Bonds, the City Council of the City (the "City Council") consent to the issuance of the Bonds by the City of Bethel after conducting a public hearing thereon preceded by publication of a notice of public hearing (in the form required by Section 147(f) of the Code and applicable regulations) in a newspaper of general circulation within the City at least fourteen (14) days prior to the public hearing date; and CITY OF EDINA 4801 West 50th Street•Edina,Minnesota 55424 www.EdinaMN.gov•952-927-8861 . Fax 952-826-0389 WHEREAS, a notice of public hearing (the "Public Notice") was published at least fourteen (14) days before the regularly scheduled meeting of the City Council on the date hereof in the Star Tribune, newspapers of general circulation in the City, and was additionally published in the Sun Current, the official newspaper of the City, with respect to the required public hearing under Section 147(f) of the Code; and WHEREAS, on the date hereof, the City Council conducted a public hearing at which a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on the following: (i) consent to the issuance of the Bonds by the City of Bethel pursuant to the requirements of Section 147(f) of the Code and the regulations promulgated thereunder; and (ii) approval of the issuance of the Bonds by the City of Bethel to, among other things, refinance the Edina Facility and finance capital improvements thereto; and WHEREAS, the City, the City of Anoka, Minnesota, and the City of Bethel are proposing to enter into a Cooperative Agreement (the "Cooperative Agreement"), pursuant to which the City will consent to the issuance of the Bonds by the City of Bethel to, among other things, refinance the Edina Facility and finance capital improvements thereto, and the City of Bethel will agree to issue the Bonds for such purpose; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA, AS FOLLOWS: I. The City Council finds that it is in the best interest of the City to approve the issuance of the Bonds by the City of Bethel to, among other things, refinance the Edina Facility and finance capital improvements thereto and hereby consents to the issuance of the Bonds by the City of Bethel in an amount not to exceed $19,500,000. 2. The Mayor and the City Manager are hereby authorized and directed to execute and deliver the Cooperative Agreement and any other documents deemed necessary to fulfill the intentions of this resolution. All of the provisions of the Cooperative 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 Cooperative 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. The Mayor and City Manager and other officers, employees, and agents of the City are hereby authorized and directed to prepare and furnish to bond counsel and the original purchaser of the Bonds certified copies of all proceedings and records of the City relating to the approval of the issuance of the Bonds, including a certification of this resolution. 4. The Borrower will, upon demand, reimburse the City for costs paid or incurred by the City in connection with this resolution. 5. This resolution shall be in full force and effect from and after its passage. �39'127�2 JAI:RL250-19 1) Approved by the City Council of the City of Edina, Minnesota this 7th day of November, 2018. f i ATTEST: _ Debra A. ang n, it- Jerk James B. Hovland, Mayor STATE OF MINNESOTA ) COUNTY OF HENNEPIN )ss CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Cleric for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of November 7, 2018 and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of 2018. Debra A. Mangen, City Clerk 539327v2 JAI' 131:250-19 3