99-032 - 04-08 - Senior Housing Project Resolution 99-32 April 8, 1999
Member Johnson introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING PRELIMINARY ACTION FOR A
SENIOR HOUSING PROJECT UNDER MINNESOTA STATUTES
CHAPTER 462C AND A NURSING HOME RENOVATION PROJECT
UNDER SECTIONS 469.152 TO 469.165 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 "Housing Act" ) and Section 469.152 to 469.165 (the
"IDB Act"), for the purpose of financing construction and equipping of an
approximately 130-unit senior residential housing facility and renovation and
equipping of its 118-bed nursing home in the City (the "Project"). Covenant has
entered into preliminary discussions with B.C. Ziegler and Company ("Ziegler"), as
underwriter of any bonds to be issued. The bonds would be revenue bonds under
the Housing Act and IDB Act in an amount not exceeding $34 million and payable
solely from payments by Covenant and their other affiliates. The bonds would not
involve a pledge of any other revenues or property of the City.
2. This Council shall hold a public hearing on the housing portion of the Project as a
housing program under the Housing Act, on the nursing home portion of the Project
as a "project" under the IDB Act and on the issuance of bonds for the purposes of
the public approval requirements of Section 147(f) of the Internal Revenue Code of
1986 (the "Code") in conjunction with its regular meeting on Tuesday, May 4, 1999
at 7:00 o'clock P.M. The City Clerk should give notice of this hearing as required by
the Housing Act, the IDB Act and the Code at least 15 days prior to the hearing.
3. The City Manager, Finance Director 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 review under the Housing
Act and an application to the Commissioner of Trade and Economic Development
under the IDB Act.
Resolution 99-32 - Continued April 8, 1999
4. Approval of the Project is subject to the public hearing and to final approval by this
Council of the housing program, the bonds and the various documents to be
executed and delivered in connection therewith. The City Manager, the Finance
Director, the City Attorney and other staff members and its financial consultants are
authorized to review proposed documents prepared with respect to the Project and
bonds, and Covenant and Ziegler are authorized to prepare a Preliminary Official
Statement, so that the Project can be carried forward and the bonds can be issued
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
financing is carried to completion.
Mary E. 4derson, Mayor
ATTEST:
Shirley J. Nelson, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Bakken
and upon a vote being taken thereon, the following voted in favor thereof: Anderson,
Bakken, Johnson, and LeSuer; and the following voted against the same: Micks,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.