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HomeMy WebLinkAboutResolution - 98-98 - Health Care Facilities Revenue Refunding Bond - Castle Ridge Care Center - 05/19/1998 Council Member Oone- offered the following resolution and moved its adoption: RESOLUTION NO. 98-98 INITIAL RESOLUTION RELATING TO A HEALTH CARE FACILITIES REVENUE REFUNDING BOND FINANCING FOR CASTLE RIDGE CARE CENTER,INC., CITY OF EDEN PRAIRIE,MINI NNESOTA(the"City") WHEREAS, the City has previously issued its $3,875,000 First Mortgage Health Care Refunding Revenue Bonds (Castle Ridge Care Center, Inc. Project) Series 1989 (the "Prior Bonds"); and WHEREAS, Castle Ridge Care Center, Inc., a Minnesota nonprofit corporation (the "Corporation"), intends to refinance (through the refunding of the Prior Bonds) and improve its existing nursing home and assisted living facilities located at 625 Prairie Center Drive in the City (the"Project"); and WHEREAS, the Corporation represents that the economic stability of the Project will be greatly enhanced through the issuance of revenue refunding bonds by the City and therefore requests the City to declare its present intent to issue its revenue refunding bonds to provide funds to refinance and improve the Project; and WHEREAS, the City is authorized to issue its revenue bonds for such purposes by Minnesota Statutes, Sections 469.152 through 469.165, as amended(the"Act"); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie,Minnesota, as follows: Section 1. It is hereby declared to be the intention of the City Council of the City of Eden Prairie, Minnesota, to issue revenue refunding bonds of the City in an aggregate principal amount expected to not exceed $4,000,000 for the purpose of refinancing and improving the Project, subject to a public hearing to be held as described in Section 3 hereof. Section 2. The officers and employees of the City are hereby authorized to take such further action as is necessary to carry out the intent and purposes of this resolution. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of this Council. The revenue bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, and the bonds, when, as and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received from a revenue agreement with the Corporation and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation or a charge against the general credit or taxing powers of the City. Section 3. The City Council shall hold a public hearing at 7:30 p.m. central time on Tuesday, June 16, 1998 at the Council Chambers in City Hall, 8080 Mitchell Road,Eden Prairie, Minnesota, to provide an opportunity for interested individuals to express their views on the proposed issue of the bonds and the nature of the Project. The City Clerk shall cause a notice of public hearing in substantially the form attached as Exhibit A to be published in the official newspaper of the City no fewer than fourteen(14)days before the hearing. Section 4. The Corporation has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Minnesota Department of Trade and Economic Development;whether or not the Project is carried to completion; and whether or not the Bonds or operative instruments are executed. Section 5. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Corporation. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds, or issue the Bonds in an amount less than the amount referred to in Section 1 hereof, should the City at any time prior to the issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or issue the Bonds in an amount less than referred to in Section 1 hereof, or should the parties to the transaction be unable to reach agreements as to the terms and conditions of any of the documents required for the transaction. Section 6. All commitments of the City expressed herein are subject to the condition that the City and the Corporation shall have agreed to mutually acceptable terms and conditions of the Loan Agreement, the Bonds, and of the other instruments and proceedings relating to the Bonds and that the closing of the issuance and sale of the Bonds shall have occurred by no later than December 31, 1999. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Bonds are not sold within such time,this resolution shall expire and be of no further effect. Adopted: May 19, 1998. oved: ayor t: City Clerk The motion for adoption of the foregoing Resolution was duly seconded by Council Member - V�.S and, upon vote being taken thereon, the following voted in favor thereof. �1-76'hnso,-7 7�m-A M&S and the following voted against the same: and the following were absent or abstained: whereupon, the Resolution was declared duly passed and adopted and was approved and signed by the Mayor and attested by the City Clerk. GP:483712 vl EXHIBIT A NOTICE OF A PUBLIC HEARING ON A PROPOSED PROJECT AND THE ISSUANCE OF HEALTH CARE FACILITIES REVENUE REFUNDING BONDS CITY OF EDEN PRAIRIE,NIlNNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Eden Prairie, Minnesota (the "City"), will meet at 7:30 p.m. central time on Tuesday, June 16, 1998, at the Council Chambers in the City Hall at 8080 Mitchell Road, Eden Prairie, Minnesota for the purpose of conducting a public hearing on a proposal that the City issue its Health Care Facilities Revenue Refunding Bonds (hereinafter the`Bonds")under Minnesota Statutes, Sections 469.152 through 469.165, as amended, in order to refinance and finance, in whole or in part,the costs of a project. The proposed financing will consist of the refunding of certain revenue bonds previously issued by the City with respect to a 60-bed long-term care facility and attached 21-unit assisted living facility located at 625 Prairie Center Drive in the City (the "Project"), and owned by Castle Ridge Care Center, Inc., a Minnesota nonprofit corporation (the "Corporation"), together with the financing of certain miscellaneous improvements to the Project. The estimated aggregate principal amount of the proposed issue of Bonds is $4,000,000, with $3,250,000 allocable to refunding purposes and the remainder allocable to the improvements to the Project. The Bonds shall be limited obligations of the City, and the Bonds and the interest thereon shall be payable solely from the Corporation's revenues pledged to the payment thereof. No holder of the Bonds shall ever have the right to compel any exercise of the taxing power of the City to pay the Bonds or the interest thereon, nor to enforce payment against any property of the City, nor shall the same constitute a debt of the City within the meaning of any constitutional or statutory limitations. A draft copy of the proposed Application to the Minnesota Department of Trade and Economic Development for approval of the Project, together with all attachments and exhibits thereto, is available for public inspection following publication of this notice at the office of the City Clerk in City Hall, between the hours of 8:00 a.m. and 4:30 p.m. Monday through Friday, except legal holidays. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the City Clerk which shall be considered at the public hearing. BY ORDER OF THE CITY COUNCIL Q��a 2�k6-- City Clerk GP:483712 v1