92-080 - 11-10 Approve Chapter 426C Calling Public HearingResolution 92-80
November 10, 1992
Member Stockman introduced the following resolution and moved its adoption:
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROJECT UNDER MINNESOTA STATUTES,
CHAPTER 462C AND CALLING PUBLIC HEARING
BE IT RESOLVED By the City Council of the City of Golden Valley,
Minnesota, as follows:
1. There has been presented to City staff a proposal by Colonial Acres
Home, Inc. and its "parent", Covenant Retirement Communities, Inc. (together
referred to as "Covenant") that the City issue and sell revenue bonds pursuant
to Minnesota Statutes, Chapter 462C (the "Act"), for the purpose of refinancing
debt incurred by Covenant in connection with the construction and improvement of
its 119 -bed nursing home and 16 -unit assisted living facility and 129 -unit resi-
dential facility in the City (the "Project"). The transaction would be part of
the refinancing of other debt of affiliates of Covenant Retirement Communities,
Inc., including certain debt relating to nursing home and assisted living faci-
lities of Ebenezer Covenant Home, in Buffalo, Minnesota (the "Buffalo Project").
Covenant has entered into preliminary discussions with Ziegler Securities, as
underwriter of any bonds to be issued. The bonds would be revenue bonds under
the Act payable solely from payments by Covenant and its other affiliates and
would not involve a pledge of any other revenues or property of the City.
Consideration will be given to the execution of a joint powers agreement with
the City of Buffalo whereby either the City or Buffalo issues the bonds under
the Act for both the Project and the Buffalo Project.
2. This Council shall hold a public hearing on the Project as a housing
program under the Act and on the issuance of bonds for purposes of the public
approval requirements of Section 147(f) of the Internal Revenue Code of 1986
(the "Code") on Tuesday, December 8, 1992 at 7:00 o'clock P.M. The City Clerk
should give notice of this hearing as required by the Act and the Code at least
15 days prior to the hearing.
3. The City Manager and City Clerk are authorized to take all action in
connection with the Project necessary and appropriate under the Act, including
preparation of a housing program for consideration and submission thereof to
appropriate planning agencies.
4. The Project is hereby given preliminary approval, subject to the
public hearing and to final approval by this Council of the housing program, the
bonds and any documents to be executed and delivered in connection therewith.
The City Manager, the Finance Director, the City Attorney and other staff mem-
bers are authorized to initiate preparation of preliminary documents with
respect to the Project and bonds so that the Project can be carried forward
expeditiously if this Council gives its final approval; provided, however, that
Covenant shall pay all costs of the City in that connection whether or not the
refinancing is carried to completion.
Resolution 92-80 - Continued
ATTEST:
Z&'-wti
Shirley 1 on, City Clerk
November 10, 1992
The motion for the adoption of the foregoing resolution was seconded by Member
Thompson; and upon a vote being taken thereon, the following voted in favor
thereof: Bakken, Johnson, Russell, Stockmand and Thompson; and the following
voted against the same: none; whereupon said resolution was declared duly
passed and adopted, signed by the Mayor and his signature attested by the City
Clerk.