04-9499r
99
RESOLUTION NO. 9499
RELATING TO A SENIOR HOUSING REVENUE REFUNDING BOND
FINANCING FOR RICHFIELD SENIOR HOUSING, INC.
BY THE CITY OF RICHFIELD, MINNESOTA (the "City")
WHEREAS, the City has previously issued its $19,905,000 Senior Housing Revenue
Bonds (Richfield Senior Housing, Inc. Project) Series 2000A and 2000B (the "Prior Bonds") and
loaned the proceeds thereof to Richfield Senior Housing, Inc. (the "Corporation"), in order to
finance a 130-unit senior housing facility and attached 31-unit assisted living facility located on
the east side ofthe 7600 block of Lyndale Avenue South in the City (the "Project"); and
WHEREAS, in connection with the payment of condemnation costs related to the
Project, the City also loaned to the Corporation the amount of $338,251.76, pursuant to the
Agreement dated August 5, 2002 (the "Prior City Debt"); and
WHEREAS, the Corporation has requested the City to refinance the Project through the
issuance of revenue refunding bonds, the proceeds of which will be loaned to the Corporation to
retire the Prior Bonds and the Prior City Debt; and
WHEREAS, the Corporation represents that the economic viability of the Project will be
greatly enhanced through the issuance of revenue refunding bonds for such purposes by the City
and therefore requests the City to declare its present intent to issue its revenue bonds to provide
refinancing for the Project; and
WHEREAS, the City is authorized to issue its revenue bonds for such purposes by
Minnesota Statutes, Chapter 462C, as amended (the "Act").
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield, Minnesota, as follows:
Section 1. It is hereby declared to be the intention of the City Council of the City of
Richfield, Minnesota, to issue revenue bonds of the City in an aggregate principal amount
expected to not exceed $21,000,000 to refinance the Project, as described above, 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 7:00 p.m. central time on
Thursday, September 16, 2004 at the Council Chambers in City Hall, 6700 Portland A venue,
Richfield, Minnesota, to provide an opportunity for interested individuals to express their views
on the proposed issue of the bonds and the nature of the facilities to be refinanced. 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 bonds 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 I
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, 2004. 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: August 24, 2004.
Approved: . ,-
7:1~A, JU
Martin J. Kirsch,J~1hYor
Attest:
~~
Nancy Gibbs, 'ty Clerk
.....EXHIBIT A
NOTICE OF A PUBLIC HEARING ON THE ISSUANCE OF
SENIOR HOUSING REVENUE REFUNDING BONDS
BY THE CITY OF RICHFIELD, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of Richfield,
Minnesota (the "City"), will meet at 7:00 p.m. central time on Thursday, September 16,2004, at
the Council Chambers in the City Hall at 6700 Portland Avenue, Richfield, Minnesota for the
purpose of conducting a public hearing on a proposal that the City issue its Senior Housing
Revenue Refunding Bonds (hereinafter the "Bonds") under Minnesota Statutes, Chapter 462C,
as amended, in order to refinance a 130-unit senior housing facility and attached 31-unit assisted
living facility located on the east side of the 7600 block of Lyndale Avenue South in the City,
and owned by Richfield Senior Housing, Inc., a Minnesota nonprofit corporation (the
"Corporation"). The aggregate principal amount of the proposed issue of Bonds is expected to
not exceed $21,000,000. The Bonds shall be limited obligations of the City, and the Bonds and
the interest thereon shall be payable solely from the Corporation's payments 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.
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
Nancy Gibbs, City Clerk