CR2003-060 schedule PH revenue bond agrmnt chapel view
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April 7, 2003
HOPKINS
Council Report 2003-060
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SCHEDULE PUBLIC HEARING REVENUE BOND/JOINT POWERS
AGREEMENT, AUGUSTANA CHAPEL VIEW HOMES, INC.
Proposed Action
Staff recommends approval of the following motion: authorize staff to schedule a public hearing
approving the issuance of a revenue bond in the amount of approximately $1.600.000 bv the
Minneapolis Community Development Agency on behalf of Augustana Chapel View Homes.
Inc.
Overview
Staff has been contacted by a legal firm representing Augustana Chapel View Homes, Inc. They
are proposing to undertake energy improvements at both their Hopkins and Minneapolis nursing
care and senior housing facilities (they will also be undertaking some telephone system
improvements at their Minneapolis facility). To finance the cost of these improvements, Chapel
View has made application to the Minneapolis Community Development Agency (MCDA) to
issue a revenue bond in the amount of approximately $1,600,000.
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Even though Hopkins would not be the issuing agent for the subject bond, in order to facilitate
this transaction the City needs to undertake the following action:
. Hold a public hearing and authorize the MCDA to issue the revenue bond
. Enter into a joint powers agreement with the MCDA concerning the bond issue
The above actions need to be completed by the City because a portion of the bond proceeds
would be used for the Hopkins facility.
In discussing this item with Chapel View's legal counsel, City staff has explained the following:
. The City will not require Chapel View to pay an issuance fee to Hopkins, as the City
would not be the issuing agent
. Chapel View will be responsible to pay all legal fees in conjunction with this transaction
Prior to the public hearing, staffwill ensure that this transaction is adequately reviewed by legal
counsel. The p ic hearing will be scheduled for May 6, 2003.
. c Dejelopment Director
Financial Impact: $ 0 N/A _ Budgeted: Y/N _ Source:
Related Documents (CIP, ERP, etc.):
Notes: