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File #: MO 13-122    Version: Name: Host Authority Approval for Bethesda Lutheran Communities, Inc.
Type: Motion Status: Held in Council
File created: 10/3/2013 In control: City Council
On agenda: 10/17/2013 Final action: 10/3/2013
Title: PROVIDING HOST CITY AUTHORIZATION FOR THE ISSUANCE OF REVENUE BONDS ON BEHALF OF BETHESDA LUTHERAN COMMUNITIES, INC.
Sponsors: Joe Huss
Attachments: 1. Bethesda 13 Minnesota (Blaine) Memorandum to City Council, 2. Blaine Host TEFRA Approval, BLC, 3. Bethesda 13 Minnesota (Blaine) Certificate of Executive Director to City, 4. Bethesda 13 Minnesota (Blaine) TEFRA Notice of Public Hearing
ITEM:         12.2         ADMINISTRATION - Joe Huss, Finance Director
 
This item was tabled at the October 3, 2013 Council meeting.
 
Title
PROVIDING HOST CITY AUTHORIZATION FOR THE ISSUANCE OF REVENUE BONDS ON BEHALF OF BETHESDA LUTHERAN COMMUNITIES, INC.
 
Background
The Wisconsin Health and Educational Facilities Authority (the "Wisconsin Authority") is requesting that Blaine provide host city approval for the issuance of up to $10 million of revenue bonds on behalf of Bethesda Lutheran Communities, Inc. to finance a project for which a portion of the proceeds (not to exceed $600,000) will be used for the remodeling, renovation, and equipping of a group home for individuals with intellectual and developmental disabilities located at 8904 7th Street NE.  While the conduit funding will be provided by the Wisconsin Authority, because a portion of the proceeds will be used to fund improvements or equipment located in Blaine, the City is required by statutes and IRS regulations to provide what is known as "Host City Approval."  The bonds, or any other obligations issued for this project, will not be obligations of the City; will not constitute a charge, lien or encumbrance upon any property of the City; and will not be a charge against the City's general credit or taxing powers.
 
Pursuant to regulations, Blaine must conduct a public hearing to provide an opportunity for comment on the finance plan and the project.
 
Schedule of Actions
Conduct Public Hearing
October 3, 2013
 
Recommendation
Upon conclusion of a public hearing, authorize the Mayor to execute a certificate of approval in compliance with the host public approval requirements of the IRS.