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HomeMy WebLinkAbout89-88 - ADMIN Resolution - City Council - 1989/07/10f i RESOLUTION NO. 89-88 6f RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED PROJECT FOR THE MINNEAPOLIS FEDERATION FOR JEWISH SERVICE AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF NURSING HOME REVENUE BONDS THEREFOR BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota (the City), as follows: Section 1. Recitals. 1.01. The City is authorized by Minnesota Statutes, Sections 469.152 - 169.165 (the Act), to issue and sell its revenue bonds to provide funds to be loaned to persons for the purpose of financing costs of acquiring, constructing, equipping and improving real and personal properties suitable for use for health care facilities, including nursing homes. Such bonds are to be secured by such security devices as may be deemed advantageous by the City. 1.02. A proposal has been presented to this Council on behalf of the Minneapolis Federation for Jewish Service, a non- profit corporation organized and existing under the laws of the State of Minnesota (the Borrower), that the City, acting pursuant to and in accordance with the Act, authorize the issuance of revenue bonds (the Bonds) of the City in the estimated aggregate principal amount of $8,000,000, the proceeds of which will be loaned to the Borrower for the purpose of: (i) paying costs of acquiring, constructing and equipping a project (the Project) consisting of a 150 -bed nursing home facility and related and incidental facilities and furnishings and equipment therefor, (ii) establishing appropriate reserves for the Bonds, and (iii) paying costs and expenses incidental to the financing. The Project financed with the Bonds will be located in the City. The Project will be owned by Sholom Home West, a Minnesota nonprofit corporation. 1.03. Under the provisions of the Act, the Bonds shall be limited obligations of the City payable solely from the revenues of the Project, including loan repayments from the Borrower, and shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. 1.04. Notice of a public hearing on the Project and the issuance of the Bonds has, as directed by the City Council, been given in compliance with the Act, and a public hearing has been held on the proposed Project and the proposed issuance of the Bonds at the time and place specified in said notice and all objections or other comments relating to the Project or the issuance of the Bonds have been heard. Section 2. $'indinga. It is hereby found, determined and declared that: (a) The City has considered the Project and has concluded that the Project furthers the purposes of Section 469.152 of the Act. (b) The Project comprises real and personal property which will be suitable for use in connection with a 150 -bed nursing home facility as contemplated by the Act. (c) It is in the public interest that the City proceed with the issuance of the Bonds pursuant to the Act in an the estimated aggregate principal amount of $8,000,000 to defray the cost of financing the acquisition, construction and equipping of the Project. Section 3. Preliminary Approval. The City hereby gives preliminary approval to the Project and to the issuance and sale of the Bonds pursuant to the Act, in an estimated aggregate principal amount of $8,000,000, and authorizes the appropriate officers of the City to participate in the preparation of such documents as may be necessary or desirable to accomplish such transactions. The Bonds shall be limited obligations of the City payable solely from and secured by the payments to be made by the Borrower under the Loan Agreement and proceeds and revenues of the Project, and will not constitute or give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 4. State Approval. Pursuant to Section 469.154, subdivision 3, of the Act, the City may not undertake the Project until the Commissioner of the Minnesota Department of Trade and Economic Development has approved the Project as tending to further the purposes and policies of the Act. An application, together with required attachments and exhibits, for such approval (the "Application") has been prepared in accordance with the requirements of Section 469.154 of the Act and the requirements of the Commissioner of the Minnesota Department of Trade and Economic Development. The Mayor and City Manager are hereby authorized and directed to submit the Application to the Commissioner of the Minnesota Department of Trade and Economic Development and to take all actions necessary to obtain the required approval by the Commissioner of the Project. Section 5. No Obligation. This Resolution is preliminary only and the issuance of the Bonds and consummation of the transactions contemplated hereby shall be subject to the adoption of a definitive resolution by the City as required by the Act. The City shall be under no obligation to issue the Bonds until the adoption of such resolution by the City. Section 6. Costs. The Borrower has agreed and it is ga f 1 1 1 r f i hereby determined that any and all direct and indirect costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Project is carried to completion and whether or not the City by resolution authorizes the issuance of the Bonds, will be paid by the Borrower upon request. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, MINNESOTA, this 10th day of July, 1989. 61)• 444.4/ Mayor Reviewed for administration: Approved o form and execution: City Manager City A rney I, the undersigned, City Clerk of the City of St. Louis Park, Minnesota, certify that the foregoing is a true copy of the Resolution passed by the City Council of the City of St. Louis Park, Minnesota, at a regular meeting held July 10, 1989. 4 1 1 J