Item Description:
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Consent to the issuance of bonds by the City of Oakdale, MN to refund HRA Series 2015 Bonds for Ebenezer Assisted Living at 3451 Parklawn Avenue in Edina
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Resolution:
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WHEREAS, the Hennepin County Housing and Redevelopment Authority (the “HRA”) is a housing and redevelopment authority and a public body corporate and politic duly organized and existing under the Constitution and laws of the State of Minnesota; and
WHEREAS, Minnesota Statutes, Chapters 462A and 462C, as amended (collectively, the “Act”), gives municipalities the power to issue revenue obligations for the purpose of financing or refinancing the cost of housing for the elderly and disabled and to enter into agreements necessary or convenient in the exercise of powers granted by the Act; and
WHEREAS, Ebenezer York Assisted Living, LLC, a Delaware limited liability company, whose sole member is Ebenezer Society, a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (“Ebenezer York Assisted Living”), and Oak Meadows, a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (“Oak Meadows” and, together with Ebenezer York Assisted Living, the “Borrowers”), have proposed that the City of Oakdale (“Oakdale”) issue bonds to refund the HRA’s outstanding Senior Housing Refunding Revenue Note (Ebenezer York Assisted Living, LLC), Series 2015 (the “Series 2015 Note”) which refinanced a senior living, assisted living and memory care facility located at 3451 Parklawn Avenue in Edina, Minnesota (the “York Gardens Facility”) and simultaneously refinance an outstanding loan which funded the acquisition, construction and equipping of a senior living, assisted living and memory care facility located at 8131 Fourth Street North, Oakdale, Minnesota (the “Oak Meadows Facility”).
BE IT RESOLVED, that the Board of the HRA approves the following: In accordance with the Act, and particularly Minnesota Statutes, Section 462A.08, subd. 2, the HRA hereby consents to the issuance of bonds by Oakdale to refund the Series 2015 Bonds.
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Background:
The Ebenezer Society was founded in 1917 to care for aging adults and partnered with Fairview Health Services in 1995 to expand their scope and reach of care. Ebenezer owns and operates York Gardens, a senior housing, assisted living and memory care facility located at 3451 Parklawn Avenue in Edina, along with other facilities across the state, including a similar senior facility in Oakdale.
According to a 2023 Wilder study, a higher percentage of older adults are experiencing homelessness in Minnesota than in previous decades. Older Hennepin County residents face income disparities, as retirees may depend upon public benefits such as Social Security, which often don’t cover cost of basic needs. Homelessness can be even more impactful on older adults, complicating health issues that can coincide with aging.
In 2009, the Hennepin County Housing and Redevelopment Authority (HRA) issued housing revenue bonds to finance York Gardens, a 76-unit senior housing, assisted living and memory care facility in Edina.
In 2015, Ebenezer York requested the refinancing of the 2009 bonds and reissued housing revenue obligations in the amount of $14,725,000 with a maturity date of December 2025 (Resolution 15-HCHRA-0039). Since 2015, Ebenezer has operated the facility and maintained its obligations with respect to the bonds.
The City of Oakdale has agreed to issue bonds to refinance both York Gardens and the Oakdale senior facility. According to Minnesota Statute 462A.08, outstanding bonds to be refunded by an issuer other than the original issuer must first obtain consent from the original issuer.
Current Request: This request is to approve the refunding of the revenue bonds issued on behalf of the Ebenezer York Assisted Living, LLC and Evenezer Society by Hennepin County Housing and Redevelopment Authority in 2015.
Impact/Outcomes: This refinancing will refund the 2015 bonds and facilitate the preservation of the York Gardens senior housing, assisted living and memory care facility.
Housing Disparity Domain: Housing instability increasingly affects older adults in Minnesota. This consent will help to preserve an important housing and care resource dedicated to serving seniors.
recommendation
Recommendation from County Administrator: Recommend Approval