HomeMy WebLinkAbout2005-09-27 Public Hearing Notice - Issuance of Revenue BondsNOTICE OF PUBLIC HEARING ON
THE ISSUANCE OF REVENUE BONDS TO REFINANCE
AN ELDERLY HOUSING DEVELOPMENT
(BOUTWELLS LANDING PROJECT)
TO WHOM IT MAY CONCERN
Notice is hereby given that the City Council of the City of Oak Park Heights, Minnesota
(the "City "), will meet in the City Council Chambers at City Hall, 14168 Oak Park Boulevard in
the City, at 7 :00 p.m. on Tuesday, September 27, 2005, to consider the proposal of valley Serer
Services Alliance ("VSSA") or a limited liability company of which VS SA is a member (the
" Company "), that the City refund and refinance tax exempt revenue bonds previously issued by
the City to finance the acquisition and construction of a 410 unit senior continuum care
retirement community located at and surrounding 5600 Norwich Avenue in the City (the
"Project") pursuant to Minnesota Statutes, Chapter 4620.
The Project, which consists of 71 buildings, including 215 senior rental townhornes and
brownstone apartments, 101 units of congregate senior apartments, 65 units of assisted living and
29 memory care units, is Owned by the Company and operated by Presbyterian Homes
Management Services, Inc.
The estimated principal amount of bonds or other obligations to be issued to finance or
refinance the Project pursuant to the housing finance program Will be $62,500,000.
The revenue bonds will not constitute a charge, lien or encumbrance upon any property
of the City, except the Project and the revenues to be, derived from the Project. Such revenue
bonds Will not be a charge against the City's general credit or taxing powers but are payable from
sums to be paid by the Company pursuant to a revenue agreement.
At the time and place fixed for the public hearing, the City Council of the City will give
all persons who appear at the hearing an Opportunity to express their views with respect to the
housing finance program and proposal. written comments will be considered if submitted at the
above City office on or before the date of the hearing.
August 31, 2005
[Publish in the Stillwater Gazette
by September 8, 2005]
By uric Johnson
Its City Administrator
18085400
Boutwells Landin
Financin Summ
Boutwells Landin is owned b Valle Senior Services Alliance ( "VSSA" ). VSSA is
owned b Presb Homes and Services ( 70%), Lakeview Hospital (20%) and
Croixdale Residence (10%). Boutwells Landin was financed in three separated phases
throu the issuance of tax exempt obli b the Cit of Oak Park Hei Phase I
consisted of 94 units of assisted livin that includes 29 memor care units. Phase 11
consists 101 units of independent senior livin apartments, 56 units of independent senior
livin townhomes and a 30,000 s foot town center. Phase III consists of 159 units of
independent senior livin townhomes and brownstone buildin The tax-exempt debt is
owned entirel b local banks. The debt on all of the phases is prepa The
outstandin debt of the facilit is approximatel $63.5 million.
VSSAI's proposin to refinance the existin debt on the facilit utilizin the issuance of
tax exempt bonds throu the Cit of Oak Park Hei that will be credit enhanced b
Freddie Mac ("AAA" rated The bonds will issued as variable rate bonds with a 30-
term and amortization. The total bond issue will be $62.5 million with VSSA providin a
e contribution to pa off the debt, fund reserves and pa costs of issuance.
The proposed timeline will have the bonds closin in mid -- November, 20005.
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