Title
Resolution giving host approval to the issuance by the City of Falcon Heights, Minnesota of conduit senior housing revenue notes on behalf of Heritage Apartments, Inc., 1440 Midway Parkway, Saint Paul, Minnesota, District 10, Ward 4
Body
WHEREAS, Minnesota Statutes, Chapter 462C, as amended, and Section 471.656 (the “Act”), confer upon cities the power to issue revenue obligations to finance combined multifamily housing and health care developments; and
WHEREAS, Heritage Apartments, Inc., a Minnesota nonprofit corporation (the “Borrower”), desires to refinance the Health Care Revenue Note, Series 2009B (Heritage Apartments Project) (the “Prior Note”) issued by Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”), the proceeds of which were used to refinance the HRA’s Multifamily Housing Revenue Bonds (Lyngblomsten Project), Series 1993B, which were originally issued to finance the acquisition, construction, and equipping of a 60-unit rental housing and assisted-living facility for the elderly located at 1440 Midway Parkway in Saint Paul, Minnesota, commonly known as The Heritage at Lyngblomsten (the “Heritage Apartments Project”); and
WHEREAS, the Borrower is and will be the owner and operator of the Heritage Apartments Project; and
WHEREAS, Bremer Bank, National Association (“Bank”) has agreed to refinance the Heritage Apartments Project, among other things, through the purchase of tax-exempt revenue notes in an aggregate principal amount not to exceed $5,000,000 (the “Notes”) issued pursuant to the Act; and
WHEREAS, the commitment of the Bank to purchase the Notes is conditioned upon them being designated by the issuer as a “qualified tax-exempt obligation” (“bank qualified”) under Section 265(b) of the Internal Revenue Code of 1986, as amended (the “Code”); and
WHEREAS, the HRA is not able to issue bank qualified obligations for the Heritage Apartments Project because it has issued more than $10,000,000 in obligation...
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