CR 90-128 Nursing Home Facilities Revenue Bond
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~Tune 12 I 1990
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council Report: 90-128
NURSING HOME FACILITIES REVENUE BOND
Long Term Care Foundation
Series 1990
pro-po..4 Aotion ~
Staff recommends adoption of the following motion: Adopt Resot\11;iQn,
No. 9Q-11 Givi~relimipary App;t::'oyal T.o A proiect On Behalf Of 'l;be
Lonq-ter~ C~e Foundation And Its Financing U~r The Minnesota
M.Ynicipa~ !ndustrtal Development Act: Re{~,rrin.g: the gl:opo,sal to the
~innesota Dep~rtment of Trade and Econon.ic Development fo~ apQroval.i..
and authorizing p~epara~i9n of necessary dOQYm~nts~
Staff recommends approval of this item with the f.ollowing conditions
being inserted into the resolution:
1. Provide staff with satisfactory evidence that other citiss are
participating in long-term care facilities purchase of the
Beverly owned properties.
2. The Long-term Care Foundation agrees to execute an agreement
with the Mayor & city Manager to either provide for the
payment of property taxes or a payment in lieu of taxes based
upon a formula acceptable to City staff.
3. Long-term Care Foundation agrees as part of the bond documents
to provide the City of Hopkins with yearly status reports and
notice should there be a default at sometime in the future.
4. The final bond documents are provided to the city and found
acceptable by the City's legal counsel.
5. Satisfactory evidence that City Qualified Small Issue.r status
will be retained for 1990
6. A financial report on the project is submitted to the city in
a form acceptable to staff and found acceptable by the City's
financial consultant.
7. Applicant agrees to pay all of the City's legal and
administrative costs related to this issuance.
8. Applicant agrees to indemnify city for any security law
violations.
QVerview.
The Long-term Care Fo~ndation, a newly formed non-profit corporation,
has approached the ci\..y of Hopkins with a request for the city to
issue tax exempt housing bonds. These bond proceeds will he used to
finance the purchase of the Hopkins Nursing Home, 725 Second Avenue
South.
I..t;L1prv Isg1tU.-JiQ, QOJl!d.4J!L.
o What ar~ the specifics of the bond issue?
o What are the implications of such an issue for the City?
o What is the background of Long-term Care Foundation?
o What are the specifics of the Joint Powers AgreeIDent?
o What additional action is required?
.~pDortiDaInf9~.t~
o Resolution No: 90-71
o Information relating to Long-term Care FOUlldation
o Letter from Long-ter~ Care Foundation re~ payment in lieu of
taxes
o lication for approval of Induztrial Development Bonds
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eR: 90-128
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Based upon the action requested, the city counci.l has the following
items to consider:
rntat are the specifics of the bond issue?
The proposed bond issue would not exceed $2 1500 1000. The proce8ds
from this sale would be used by Long-term Care Foundation to
facilitate their purchase of the Hopkins Nursing Home by Beverly
Enterprises.
Beverl}" Enterprises is liquidat.':'ng 18 of their long-term care
facilities in the twin city metropolitan area.
The applicant is anticipating to use approximately $100,000 of t-,be
bond proceeds to up-grade the existing structure.
What are the implications of such an issue for the City?
In the past the city has financed a number of housing projects with
revenue bonds.
The purpose of this type of financing is to provide a lower interest
rate to facilitate development. The Ci~i, by placing its name on the
bonds I provides a tax exempt status and therefore a lower interest
rate.
Repayment of the bonds is strictly from the revenue of the project 0
The City is under no financial obligation should there be a default.
From a financial standpoint the staff has two concerns as relates to
the issues:
loss of property tax
effect on city's Small Issue.r s'tatus
The first concern as relates to this trans\~,ction is that thers will be
a potential loss in property taxes. B,~verly Facilities is a for-
prof! t organization and Long-term Care Foundation is a non-profit
organization. It appears that according to state law a nun-profit
orqanization does not have to pay property tax on a facility that is
used for charitable purposes., By f81::ilit.ating this transaction the
City could lose significant revenues (Hopkins Nursing Home presently
pays approximately $104,000 a year in property tax).
As part of the bond documents the staff would recommend 'that lanquage
he included to state that tns ~~plicant would pay real estata taxes on
the nursinq h;.')IDS, facility should it b& determined to be legally
acceptable. Shou,ld there b@ a problem with the payment of property
taxes the Long-term Care Foundation would agree to make a p&yment in
lieu of taxes which i~ acoept.able to the city Attorney and staff.
Thill probably would b~ based on a formula which would provide a
reimbursement to the Long....term care Foundation under the Minnesota
K.dioade Act (It appears this could be approximately 60-70% of what
the City presently receives from Beverly Enterprise).
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CR; 90-1-28
Page :3
Under the proposed action staff would negotiate and execute this
agreement.
The second concern on this issue relates to its effect on the City's
status as a Small Issuer.
Under IRS rules a city is considered a small issuer if it issues less
than ten million in tax exempt. bonds in anyone year. Once this is
exceeded there are some potential tax ramificat.ions for the housing
bond issues being considered.
For 1990 the city has already issued 4.6 million in tax exempt lands.
The Housing is requesting approval to include the following:
Augustana Home of Minneapolis
Long-term Care Foundation
$ 3,,500,000
$ 2,500,000
In talking with Holmes & Graven it appears the city's early issue will
not be impacted even if the 10 :million limit is exceeded. For the
most part this concern appears to be something that needs to be worked
out between the Long-term Care Foundati.,m and Augustana Home.
What is the background of the Long-term Care Foundation and the
other groups involved in this project?
The Long-term Care Foundation is a newly formed Tennessee non-profit
corporation organized for the purpose of acquiring and operating
long-t.erm care facilitieso This foundation was incorporated with the
specific purpoge of acquiring the Beverly Enterprises owned property
wi~~in Minnesota.
Th9 Long-term Care Foundation is part of the VHA Long-te:t1l1 Care !nc.
which is a subsidiary of Voluntary Hospitals of America Inc.
Voluntary Hospitals of America Inc. has a fairly qood reputation.
Abbott Northwestern Hospital is a member of this organization.
Health Dimensions Inc., which is a Minnesota corporationt has been
retained by the Long-term Care Foundation to provide management
services for the facilitiss to be acquired from Beverly Enterpriees~
The Minnesota Department of Human Resources and the Minnesota
Departme41t of Health &160 state that they have a good reputation
within Minnesota. .
What are the specifics of the Joint Powers Agreement?
The Lon9-ter~ Care Foundatiofi is proposing to purchase 18 Beverly
Entcl::"prises oWl.eti r......cilitie.s located within 13 c:;.ties in the twin
citie~ metropo"!.:.tan arb-~. In order to over-come t,he time constraints
and co~t of having all thesQ separate is.ussr the applicant is
reqJ.est.it.:l uach city to 00naider entering i.nto a Joint Powa~~
Aqreement with the city of Min.:~apolis9 Minneapolis has been selected.
to be the issuer because the ~argest percentage of the Beverly
facilities are located within that city.
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It is staffs understanding that the city of Minneapolis has agreed to
take on this responsibility. It is also Qur understanding th~,t the
community Development Committee to the city Council of the City of
Minneapolis has approved a preliminary resolution to underta}{a the
sale of the bonds necessary to finance the Long-term Care Found.ations
acquisition of the Beverly properties within the city of Minneapolis,
The Hopkins city council has the final decision on whether they wish
to enter into a Joint Powers Agreement ot~ this issue, 'I'lle staff in
researching this matter feels that there is no negative. implica'i;:ion~
to the City in undertaking such an action.
o What additional action is required?
If the action as requested is approved the applicant TNill need to
comply with all of the condi1_ions as detailed. All of thesp. items
would be dealt with at the staff level.
Any further Council action would depend upon action relating to the
Joint Powers Agreement. The following alternatives are ava.ilable:
o Council approves preliminary resolution and Joint Powers
Resolution as recommended by staff. The Hopkins City council
as a result of this act,ion undertake no further action on this
item. Final approval would be by the City of Minneapolis.
o Council approves preliminary resolution and Joint Powers
Agreement with condition that the Hopkins city council also
provides final approval.
o Council approves preliminary resolution and not Joint Powel~s
Agreement. Unde:t' this situation t.he Hopkins City Cou1\ctl
would be required to provide final app~oval.
Al.~~ y:',-n~~_
The city council has the following alternatives r~garding this issue:
1. Approve the action as requested by 6taff~ This action will
allow the applicant to proceed with the preparation of the
final bond documents. In conjun.,ti.on 'lIdth this action the
Council is also being requested to undertake acti,or.as a Joint
Powers Agreement with Minneapolis.
2. Deny the request. Under "this action the Long-term Care
Foundationi if it wishes to acquire the Hopkins Nursing Home
wlll have to attempt to get priV.!l'tfl financing. '!'hls MllY or may
not be financially feasible. Should they procG"-d with market
rata financing they rents withir1 thisfaci.1.:!..ty W'ould prohably
have to increase to reflect the hiqher i~t~T~~t rate.
3. continue for further infor.mation. This ~ay or may not be a
concern and will have to be addressed by the applicant.
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RESOLUTION NO.
90- 71
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT ON BEHALF OF THE LONG TERM CARE
FOUNDATION AND ITS FINANCING UNDER THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING
THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE
AND ECONOMIC DEVELOp~mNT FOR APPROVAL; AND
AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of
Hopkins, Minnesota (the City), as follows:
SECTION 1
Recitals and Findings
1.1. This Council has received a proposal that the City
finance a portion or all of the cost of a prcposed project
under Minnesota Statutes, Sections 469.152 through 469.165 (the
Act), on behalf of The Long Term Care Foundation, a Tannessee
nonprofit corporation (the Borrower), consisting generally of
financing the acquisition of and certain improvements to an
existing nursing home facility, commonly known as Hopkins
HealthCare Center locate~ at 725 Second Avenue South in the
City (the Project).
1.2. At a pUblic hearing, duly noticed and held on June 19,
1990, in accordance with the Act ~nd Section 147(f) of th~
Internal Revenue Code af 1986, on th5 proposal to undertake and
fin~nce the Project: all partie$ who appe~red at the hearing
were given Hn opportunity to express their views with respect
to the proposal to undertake and finance the Project.
Interested persone were also qivan the oppor.tunity to submit
written comments to the City Clerk before the time of the
hearing. Based on the public h6:H:ing 6 such wri tt.en com.."nents
(if any) and such other facts and circumstances as this Council
deems relevant, this Council hereby finds, determines and
declares as follows:
(a) The welfare of the State of Minnesota requires
the provision of necessary health care facilities to the end
that adequate health care services be made av~ilable to
residentm of the State of Minnesota at re~sonable cost, ~nd the
State of Minnesota has encouraged local govex~nent units to act
to provide such facilities.
(0) The undertaking of the Project would further the
general purposes contemplated and described in Section 469.152
of the Act.
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(c) This Council has been advised by representatives
of the Borrower that conventional, commercial financing to pay
the cost of the project is available only at such high costs of
borrowing that the economic feasibility of the Project would ~~
reduced.
(d) This Council has also been advised by
reoresentatives of the Borrower that on the basis of their
discussions with potential buyers of ta~-exempt bonds, revenue
bonos of the City (which may be in the form of a revenue note
or notes) could be issued and sold upon favorable rates and
terms to finance the Project.
(e) The City is authorized by the Act to issue its
revenue bonds to finance capital projects consisting of
properties used and useful in connection with a revenue
producing enterprise engaged in providing health care services,
such as that of the Borrower, and the issuance of the bonds by
the City would be a substantial inducement to the Borrower to
undertake the Project
SECTION 2
Determingtion To Pr9~~~lth
the ?~oject and the Financing
2.1. On the basis of the information given the City to date,
it appears that it would be desirable for the City to issue its
revenue bonds: under the provisions of' the Act to finance the
Project in the maximum aggregate face amount of $2,500,OOO~
2.2. It is hereby determined to proceed with the Project and
the financing and this Council he~eby declares its present
intent to have the City issue its revenue bonds under the Act
to finance the Project. Notwithstanding the foregoing,
however.. the adoption of this resolution shall not be deemed to
establish a logsl obligation on the part of the City or its
Council to issue or to cause the ir-suance of such revenue
bonds. All datai ls of such revenue bond is:S:l,!~ all~ the
provisions for payment thereof shall be subject to iinal
approval of the Project by the Minnesota Department of Trade
and Economic Development (the Department) and may Lc sUbject to
such fUt'the:r conditions as t.he City may specify. The revenue
bonds, if issued, shall not constitute a charge, lien o~
encuinbr~nce, legal or equitable, upon any property of the City,
except the revenues specifically ~ledgea to the payment
thereofe and each bond~ whene as and if i$sued, shall recite in
substance that the b(indl including interest thereon, is paY(1,ble
solely from the revenues and plope~ty specifically
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pledged to the payment thereof, and shall not constitute a debt
of the City within the meaning of any constitutionall statutory
or charter limitation.
2.3. The Application to the Minnesota Department of. Trade cud
Economic Developrr..ent (the Applica.tion), with attachments, is
hereby approved, and the Mayor and City Clerk are authorized to
execute said do~uments on behalf of the City.
2.4. In accordance with Section 469.154, Subdivision 3 of the
Act, the Mayor and City Clerk are hereby authorized and
directed to cause the Application to be submitted to the
Department for approval of the Project. The Mayor, City Clerk,
City Attorney and other officers, employees and agents of the
City are hereby authorized and directed to provide the
Department with any preliminary infol:"mation needed for thi.s
purpose. The City Attorney is authorized to initiate and
assist in the preparation of such documents as may be
appropriate to the Project, if approved by the Department.
SECTION 3
General
3.1. If the bonds are issued and sold, the City will enter
into a loan agreement or similar agreement satisfying the
requirements of the Act (the Revenue Agreement) with the
Borrower~ The loan paymants or other amounts payable by the
Borrower to the City under the Revenue Agreement shall be
sufficient to pay the principal of, and inter.est and redemption
premium, if any, on, the bonds as and when the same shall
become due and payable.
3.2. The Borrower has agreed and it is hereby determined that
any and all direct and indirect costs incurred by the City in
connection with the Projeetf whether or not the Project is
carried to completion, and whether or not: approved by the
Department, and whether or not the City by resolution
authorizes the issuance of the bonds, will be paid by the
Borrower upon request.
3.3. The Mayor and City Clerk are directed, if the bonds are
issued and sold, thereafter to comply with the provisions of
Section 469.154, Subdivisions 5 and 7 of the Act.
3.4. This ra~olution shall become effective inunediately upon
its passage and without publication.
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Adopted this 19th day of June, 1990.
Attest:
City Clerk
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Adopted this 19th day of Junel 1990.
MayoI'
Attest:
City Clerk
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THE LONG TERM eRRE FOUNDRrlON
Guy Collier - Counsel
1850 K STREET, NW - SUITE 500
WASHiNGTON, DC 20006
(202) 778.8016
Michael Resen - O:rector
May 30b 1990
Mr. Jim Kerrigan
cie. of Planning and Economic Dev.
City of Hopkins
1010 First Street South
Hopkins, t4N 55343
Dear Mr. Kerrigan:
,e
We understand that a question has arisen regarding whether
The Long Term Care Foundation (the "FOundation") would pay real
estate taxes for the nursing home facilities to be acquired by
the Foundation from Beverly Enterprises. With respect tot,his
issue, it is the Foundation's pos.ition that should the City of
Hopkins (the >>City") determine that it has the authority to
levy real estate taxes on the Foundation's facilities~ the
Foundation will make payment of such taxes to the City'. If,
however, the City determines that the Foundation ~~ould instead
make'> payments in lieu of real estate taxes fot services which
the City renders to the Foundation's facilities: such as fire,
police, sanitation services, road maintenance and such other
services as are reimbursable under the Minnesota Medicaid Act,
the Foundation will make such payments. For your information,
a copy of the relevant portions of the Minnesota Medicaid Act
is enclosed for your review.
Please feel free to call me at (904) 79a~eOOO ox
Mr. Douglas McNeill, the Foundation','3 Secretary: at
(511) 263-0711 if you have any questions.
Vary truly yours~
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MiciHi,;~ 1 Rosen..---
Ptasident
MR/md/7594e
Enclosure
Revised January, 1990
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STATE OF-MINNESOTA
MIHNESCTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT
DIVISION OF COMMUNITY DEVELOPMENT
APPLICATION FOR APPROVAL OF INDUSTRIAL DEVELOPMENT BOND
PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.15l THROUGH 165
(please submtt this fonn in duplicate. all supporting d~ta itl ~~:'I91e copy only!
. Ma v 2::;, 1 990
Date. ..O$.~r8..~~~..&e.
The govern1ng body of ...t.gI}PP."UNJ-j..s.....u"t County of u~~J1J''OE;w~P'.u..., Minnesoh,
hereby applies to the Minnesota Department of Trade and Economic Oev~lopment
(Department) for approval of a proposed Industrial D~v~lcpment So~d issue as required
by M1nn. Stat. 469.152-.165.
Address of issuer. .<;.!=Y. .ficiJ.J...r..~ ~~!. ,&Q1J ~11. .A~tt[~ .~t~AA~.. ~\i.r~i'~~lilP'<{J.~ ~__. .t1io..t=.:;Qt~
..~$e~.~o...*.o..e...~~........$.e........~~..~.a..5..G_.._.oO...~~_..t..Q..__'..~9~~~.
Attn: ..~...&...es....Q.~...'.~e....ew~..D Telephone: ................~.Q.._...~..s..
We have entered into preliminary discussions with:
F1 mo The Lana 'rerm Carp FotJnr'l""t i I"ln
a .........i...c....~........~.~r..~~.*
Guy Collier and Lisa Gilden
Attorney: t1;::..q~~rr~.t.~ ~ . ~j.l.J. ~ ~. f:JIlliO'. U H
Address: .. J.p.5"q .. \<. "s.~1;~~~,.. .Sv.j..t.~ . ~ PP.. .. Address:" t.8..~ Q. ~. .S..t.\~~t~oe~:;.j...t~fi. ~~p~ eo .
W h; ~ n C W h. ~ 0 c
.~ty: .....il~I.......Q'i1r".A........ State ...u....... City: ...,,~~lI~~"~rPJ\..... CState .......u...
N,.Ma of ProJ."'t. Nursing Home Facilities Revenue Bonds (Tl-.e Loner 'T'prm ("';llrp
_II" .. · 0..... Fo'undat"i'on ~:. .serle"s" .i990o........... ....." ~'.. 4~"". i>. ."''1\''. o"'eli'1l"
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This .~1.rm. ts engl.aed crtmar.11y 1.n (nature. of business): PH~~~fJ.l'~q. ~pn,g.. t:~.rJ1l.(,f~FA..
faCl....ftles. TI'1ese fifcl ItleS: nrovl.de lona term carl? ~erv; ,..""q i "'C11lA< "IN
.. e){ -11- · d.. .. · · · · · · · · · · · · .. · · · · n ' h.~.t ' ~. · a ,$ .,. · (j · 0 · · · ~. · · , · is .. tl . . * ;' ,. .If II . 'f. 1" ....l-(,.....o ~ '1' tlr~....V*. e:i!t ~ e
· ~ .a~" · .~ · · ~~..r:~:~~. ..~<;~~,.. .~t;. f-. .1. . 7 !-r.t.~ '{ere f'.e..~'{ l.f~.~ \ .. ?..s:r:'i1J9. ~.qC; ~ ~).. .~~rY.i.~~~. . . . ..
an persona~ care serVlces to tne e derly and infirm.
The proceeds from the sale of the tnd~str111 Dev~~gpm~nt Bond! will be Y~~d to
(de'C!"\bt, the ~ro6oc~: . .~~~~:-l~~. ~;<:.-\~1;~'P$l. .11~fp.l;/N. r.p..r'l~. }ii.sAl H:j..~!i. ilP.4. .~i'-~f-.....
· · · 'i~f.. .'H ~l".N l~~ .. y~~ ot;IJ~;,. . V}~f~o~C;,,, fJis. ..l!t9FJ2.. .~IJJ-)'..Y. .. 9!f~.C;,1;t9~A .QQ. .S.q~~~}1.1.Et . L l\~l\e to
; eietll\.'!'-~".&.." @ e;.o~. 0 ... _It..~ ~{I:" ~~13'" . ow.;g. eQi = <<I""\!."~ il-lJ e f!.1. ........", ~....Iljt.! .... r-.." ca "'... II.."". ~. fl.
Il.<#.... f l!; j t. Se,-,: Schedule 1 hereto
~wwre$$ 0 rrc Ie . i$~~'~.~6~.~~~~e~..~~~~~~..~..............~.e..4..e..~0............
t...~ ""'..-eiil.to9V" 8''''.''' 5414... ..ail-iIl. .... .........1"."..... .........,. ........." 'I........ .........
PrOte8ds fram the s.l. Q1 the bonds of approximately $.if,~.4~AOP.~, will bi appl1ed
toward payment of costs no~ estimated 45 fOllows:
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ACQu1s1ti0i1 of land: and facilities
New eonstruct1on:
Demol1t1o~ and sit. pr,p~r&t1on:
ACQuis1tton and Install~ti~n a1 Equipment:
Fees: Areh1tlctural, en91n.tr1ng. 1nsp&et1on.
f1Ica~. legal, adm1n1strlt1on. or pr1nt1ng:
Construction Intlrest:
Initial Bond Reserve:
Ccnt1ngenc1es:
Other:
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$ .3 4 . OAQ .. 00.0. .
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It is presently e~t1mated that construction will begin on or about "~~~""""""'t
19...., and will be complete ~n or about .......~/.~........., 19..... When complettd.
there will be approximately ..(!\. new jobS created by the project at an annual payroll
.t approximately $...N/~....., based upon currently prevailing wages. (If applicable)
here are ...a~~1.. existing jobs pro~1ded by bus1ness.
(If applicable} Th1f'" \11111 be ....~~{'>...... jobs created by con~truct1on of the project.
Number of hours .....~..... Average wage level $.....~/~.....o.
Repayment of the proposed issue will be amortized over Q perioq of ......~Q.... years.
The following exhibits are furnished ~1th this application and are 1~corporate1 hert1n
by reference:
1. An opinion of bond counsel that the proposal constitutes a projEct under Minn.
Stat. 469.153, subd. 2.
2. A copy of the resolution by the governing body of the issuer giving preliminary
approval for the issuance of its revenue bonds and stating that the project~ except
for a project under Minn. Stat. 469.15J~ subd. 2(g) or (j) would not be undertaken
but for the availability of Industrial Development Bony finlne1ng.
J. A comprehensive statement by the municipality indicating how the project satisfies
the public or purpose and policies of Minn. Stat. 469.152-.165.
4. A letter of intent to purchase th_ bond issue or a letter conf1nming the
feasibility of the prOject from a f1nant1al standpoint.
5.
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A stltement signed by the principai represenUtive of the issuing IlJthorit,j' to the
effect that upon entering into the revenue agreement. the information required by
Minn. Stlt. 469.154, subd. 5 will be submitted to the Oepartme'lt (not I,pplicatle to
project under Minn. Stat. 469.153, subd. 2(;) or (j).
6. A statement signed by the principal repruenuthe of the 1 $Su'ng autnoray that
the project dOls not include any property to be sold Dr affixed to or consumed ~n
the production of property for sallp and does net include any ht~sing fae11,ty to
be rented or used as a penmanent res1denceo
7. A statement $igned by a representative of the ~$$UiMg authority that a oublic
hearing \cia! conducted pursuant to Minn. Stat. 459.154, subd. 4. The shternent
shall include tne date, time and place of the ~~etinQ and certify that a draft cop~
of thi$ 4pp!1r.ati~n with 111 attachments was available for public inspection anti
that all intiresttd pArties were afforded an opportunity to expres~ the1r v1e~~.
8. Copies of not1ce{l) as published which indicate the date(s) 01 pub11cit1on and th~
newspaper(!) 1n which the noticl(S) were pUbliShed.
9. Provide. pian for compliance of employment preference of economlca11y
d1Sldvantl9~ct pr un~ploy'd 1ndiv1cyal$. (5.. M'nno Stat. 469.154t $wbd. 7.)
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We. the unders1gned, are ol,ily elected representatives of ..t;Q~.~.i.1:5~.r.f..~lPl1.tt'!i?~.l.i/~;
Minnesota and solicit your approval of this project at your earliest convenience so
that we may carry it to a final conclusion.
a1gned by: (Principal Officers or Representatives of Issuing Author1ty; type or pr.int
official 's n~ on the line to the left of the signature line. Thank you~)
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Mayor/chair MAYOR
Signature
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CLERK
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S~gnature
ThiS approval shall not be deemed to be an approval by the Dep~rtment or the Stat! of
the feas1bti1ty of the project or the tenns of the revenue agrt~nt to oe executed or
the bonds to be issued therefor.
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Authorized Signature. Minnesota Department of
Trade and Economic Development
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Oat~ of Approval
Pleaze return to:
Min~esota Depart~ent of TraJI a~d Eeonomic Development
Division of Community Development
Attn: Richard Nadeau
900 American Center Building
150 East Kellogg Boulev&rd
St. Paul, Minnesota 55101
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May 25, 1990
Commissioner
Minnesota Department of Trade
and Economic Development
900 American Center
150 East Kellogg Boulevard
St. Paul, Minnesota 55101
Re: $43,000,000 Nursing Horne Facilities Revenue Bonds
(The Long Term Care Foundation), Se~ies 1990
City of Minneapolis, Minnesota
~ Dear Sir:
We have reviewed a resolution adopted by the governing
body of the City of Minneapolis! Minnesota {the City}, on
May 25, 1990 (the Resolution), relating to a proposal that the
City issue its revenue bonds under Minnesota Statutes, Sections
469.152 th"ough 469.165, to finance, i.rJ. o;,;hole or in part, a
project (the Project) on behalf of The Long Term C~re
Foundation, a Tennesree nonprofit corporation (the Borrower).
On the basis of our review of the Resolution and
preliminary discussions with and representatives of the
Borrower and Manufacturers Hanover., in,vestmelit b.:.u~kers. as to
the nature of the Project and the pro~osad finanCing thereof~
it is presently our opinion that (i) the Project constitutes a
"project" within the meaning of Minnesota Statute~, Sec.tic~1
469.153, Subdivision 2(d) and (ii) tho City is authori~ed,
assuming further proceedings arc taken in accordance with the
provisions of Sections 469.152 throu~h 469.165 and ~ny oth~r
applicable law, to issue its revenue bo~d$ ~6 proposed by th~
Resolution.
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Com.'lIissioner
Minnesota Department of Trade
and Economic Development
Page 2
We have reviewed certain proceedings of the City aDd
the cities shown on Schedule I attached hereto, which show that
public hearings have been held with respect to the project and
the financing thereof with the proceeds of the revenue bonds in
compliance with the requirements of Minnesota statutes, Section
469.154, Subdivision 4, and Section 147{f) of the Internal
Revenue Code of 1986, as amended.
Very truly yours,
DORSEY & WHITNEY
By
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