Title
Resolution Consenting to the Issuance of (a) Health Care Facility Revenue Refunding Bonds (Open Cities Health Center Project), Series 2015A, and (b) Taxable Health Care Facility Revenue Bonds (Open Cities Health Center Project), Series 2015B for Open Cities Health Center, Inc. by the Port Authority of the City of Saint Paul
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) has previously issued its Minnesota Health Care Revenue Bonds, Series 2001A and 2001B (Model Cities Health Center Project) (collectively, the “Series 2001 Bonds”), in the original principal amount of $5,300,000 and currently outstanding in the principal amount of $3,860,000, which were issued to provide financing and refinancing for the property located at 409 North Dunlap Street, St. Paul, Minnesota owned by Open Cities Health Center, Inc., a Minnesota nonprofit corporation and 501(c)(3) organization (f/k/a Model Cities Health Center, Inc.) (“Open Cities”); and
WHEREAS, Open Cities has requested that the Port Authority of the City of Saint Paul (the “Port Authority”) issue its (a) Health Care Facility Revenue Refunding Bonds (Open Cities Health Center Project), Series 2015A, and (b) Taxable Health Care Facility Revenue Bonds (Open Cities Health Center Project), Series 2015B (together, the “Bonds”) in an aggregate principal amount not to exceed $4,350,000, and that the proceeds of the Bonds be loaned to Open Cities to refund the Series 2001 Bonds still outstanding and pay certain costs of issuance of the Bonds (the “Project”); and
WHEREAS, the purchaser of the Bonds is requiring that the Bonds be designated by the Port Authority as a “qualified tax-exempt obligation” (“bank qualified”) under Section 265(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and the HRA is unable to issue bank qualified obligations in calendar year 2015 because it expects to issue more than $10,000,000 in obligations for use by nonprof...
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