13-043 - 05-21 - issuance of revenue bonds - colorado health facilities - covenant retirement communities, inc. Resolution 13-43 May 21, 2013
Member Pentel introduced the following resolution and moved its adoption:
RESOLUTION PROVIDING FOR ISSUANCE OF REVENUE BONDS BY
THE COLORADO HEALTH FACILITIES AUTHORITY FOR
COVENANT RETIREMENT COMMUNITIES, INC.
AUTHORIZING THE EXECUTION OF CERTAIN
DOCUMENTS IN CONNECTION THEREWITH
WHEREAS, Covenant Retirement Communities, Inc., an Illinois not for profit
corporation (the "Corporation"), has requested that the Colorado Health Facilities Authority
("Authorit�') issue one or more series of revenue bonds under the Colorado Health
Facilities Authority Act, Colorado Revised Statutes 25-25-01, et seq., as amended, in a
principal amount not to exceed $80,OOO,Q00 (the "Bonds'�; and
WHEREAS, the Corporation intends to use the proceeds from the sale of the
proposed Bonds to finance projects located in the States of Colorado, Illinois, Washington,
Michigan and Minnesota; and
WHEREAS, a portion of the Bonds (the "Loca/Portion") will be issued to: (i) pay or
reimburse the Corporation or Colonial Acres Home, Inc. (d/b/a Covenant Village of Golden
Valley, Colonial Acres Health Care Center, Covenant Heritage House and Woodside
Terrace) for the payment of the costs of acquiring, constructing, equipping, remodeling and
renovating long-term care facilities, including, without limitation, the acquisition,
construction, equipping, remodeling and renovation of independent living and health care
facilities (the "Project"); (ii) fund a debt service reserve fund if deemed necessary or
advisable by the Gorporation or the Authority; (iii) provide working capital to the Corporation
if deemed necessary or advisable by the Corporation or the Authority; (iv) pay a portion of
the interest on the Bonds if deemed necessary or advisable by the Corporation or the
Authority; and (v) pay certain expenses incurred in connection with the issuance of the
Bonds; and
WHEREAS, the aggregate face amount of the Bonds will not exceed $80,000,000,
with an amount not to exceed $5,000,000 thereof constituting the Local Portion; and
WHEREAS, the Corporation requests that the City of Golden Valley, Minnesota (the
"City'� consent to the proposed issuance of the Bonds by the Authority; and
WHEREAS, the City conducted a public hearing on May 21, 2013, in accordance
with Section 147(fl of the Internal Revenue Code of 1986, on the proposed issuance af
such portion of the Bonds that will be used to finance the Project and finance the costs of
issuing such Bonds; and
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. The issuance of the Bonds by the Authority in an amaunt not to exceed
$80,000,000, with an amount not to exceed $5,000,000 thereof constituting
the Local Portion, is hereby approved, for purposes of Section 147(fl of the
Internal Revenue Code of 1986.
Resolution 13-43 - Continued May 21, 2013
2. The Mayor and City Clerk (each, an "Authorized Officer") of the City are
hereby authorized and directed to do all such acts and things and to execute
or accept all such documents as may be necessary to carry out and comply
with the provisions of these resolutions, and all of the acts and doings of the
Authorized Officers of the City which are in conformity with the intent and
purposes of these resolutions and within the parameters set forth herein,
whether heretofore or hereafter taken or done, shall be and are hereby
authorized, ratified, confirmed and approved.
3 The Bonds shall not be deemed to constitute a debt or liability of the City or
the State of Minnesota or any political subdivision thereof, or a pledge of the
faith and credit of the City or the State of Minnesota or any political
subdivision thereof, and neither the City, the State of Minnesota nor any
political subdivision thereof will be liable on the Bonds. The Bonds will not be
issued by the City, nor will the City have any liability with respect to the
Bonds.
Shepa d M. Harris, a or
ATTEST:
/��/'�Z�
Susan M. Virnig, City Clerk
The motion for the adoptian of the foregoing resolution was seconded by Member Clausen
and upon a vote being taken thereon, the following voted in favor thereof: Clausen, Harris,
Pentel, Scanlon and Schmidgall; 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.