ADMINISTRATION - Joe Huss, Finance Director
Title
AUTHORIZE JOINT POWERS AGREEMENT WITH THE CITY OF COLUMBIA HEIGHTS TO ISSUE HOUSING FACILITY REVENUE BONDS RELATING TO CRESTVIEW SR. HOUSING PROJECT
Background
On April 16, the City Council adopted a Resolution stating the Council's intention to issue up to $64.9 million in conduit revenue bonds pursuant to IRS regulations and State of Minnesota Statutes, Chapter 462C. The bond proceeds are to be used to both finance the construction of a senior facility consisting of 24 memory care units, 51 assisted living units, 11enhanced assisted living units, and 66 independent living units in a PBD (Planned Business District) zoning district at the southwest corner of Ulysses Street and Paul Parkway and refinance existing debt on a facility in Columbia Heights. Blaine will be the issuer of the debt and Columbia Heights will be providing host city approval related to the refinancing of the existing debt. As such, a Joint Powers Agreement (JPA) between Blaine and Columbia Heights is required.
The bonds issued by the City are commonly referred to as Conduit Debt Bonds and would not constitute a charge, lien, or encumbrance upon any property of the City, and would be repaid only with the revenues are derived from the project itself. The bonds are not considered an obligation of the City, and would not be a charge against the City's general credit or taxing powers. The bonds would be issued pursuant to IRS regulations and State of Minnesota statutes, chapter 462C, and would affect neither the City's credit rating, nor the City's debt limit.
Recommendation
By motion, approve the attached Joint Powers Agreement.