93-006 - 01-05 Authorize Agreement Refinancing Elderly Housing FacilitiesResolution 93-6
January 5, 1993
Member Stockman introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING EXECUTION OF
JOINT POWERS AGREEMENT WITH CITY OF BUFFALO TO PROVIDE
FOR REFINANCING OF ELDERLY HOUSING,
ASSISTED LIVING AND NURSING HOME FACILITIES
WHEREAS, This Council, by Resolution adopted December 8, 1992 after a
public hearing thereon, acting pursuant to Minnesota Statutes, Chapter 462C (the
"Act"), approved an Amendment to the City's Housing Plan which includes a
Program for the refinancing of a nursing home, elderly housing facility and
assisted living facility (the "Golden Valley Project") on behalf of Colonial
Acres Home, Inc., a Minnesota nonprofit corporation, and its "parent", Covenant
Retirement Communities, Inc., an Illinois nonprofit corporation (together, the
"Corporation") and gave preliminary approval to the issuance of revenue bonds
pursuant to the Act; and
WHEREAS, the Amendment has been submitted to the Minnesota Housing
Finance Agency for review pursuant to the Act.
WHEREAS, the refinancing is a part of the refinancing of other debt of
affiliates of the Corporation, including debt incurred in connection with a
nursing home and assisted living facility in Buffalo, Minnesota (the "Buffalo
Project"); and
WHEREAS, it has been determined that the refinancing of the Golden
Valley Project and the Buffalo Project can be most expediently accomplished
through a joint powers agreement with the City of Buffalo pursuant to the Act
and Minnesota Statutes, Section 471.59, whereby the City of Buffalo issues
revenue bonds under the Act to provide financing for both the Golden Valley
Project and the Buffalo Project; and
WHEREAS, there has been submitted to this Council a form of Joint Powers
Agreement dated as of January 1, 1993 and a draft of Preliminary Official
Statement which describes the documentation to be involved in the refinancing
transaction and the nature of the obligations proposed to be issued by the City
of Buffalo under the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GOLDEN
VALLEY, AS FOLLOWS:
1. The Joint Powers Agreement is hereby approved and shall be executed
by the Mayor and City Manager in substantially the form on file with all such
changes or corrections therein as may be approved by officers executing the
same, which approval shall be conclusively evidenced by the execution thereof.
2. The Joint Powers Agreement shall be delivered and become effective
only upon (i) receipt by the City of $31,715 as compensation to the City for the
effect of the bonds on the City's prospective ability to issue "bank qualified
bonds" under Section 265(b)(3) of the Internal Revenue Code of 1986, (ii) com-
pletion of the review of the Program by the Minnesota Housing Finance Agency and
Resolution 93-6 - Continued
January 5, 1993
(iii) receipt by the City of an approving legal opinion of Faegre & Benson, of
Minneapolis, Minnesota, with respect to the validity of the Joint Powers
Agreement and the bonds to be issued by the City of Buffalo with respect
thereto.
3.
authorized
respect to
ATTEST:
The City Manager, the Finance Director
to provide such certifications as may
the Program and the Joint Power!
Shiley J. is n, City Clerk
and other City officers are
be reasonably requested with
The motion for the adoption of the foregoing resolution was seconded by Member
Russell; and upon a vote being taken thereon, the following voted in favor
thereof: Bakken, Russell, Stockman and Thompson; and the following was absent:
Johnson; and the following voted against the same: none, whereupon said resolu-
tion was declared duly passed and adopted, signed by the Mayor and his signature
attested by the City Clerk.