NOTICE OF PUBLIC HEARINGS
MINNESOTA AGRICULTURAL AND ECONOMIC DEVELOPMENT BOARD
AND
DULUTH ECONOMIC DEVELOPMENT AUTHORITY, ST. LOUIS COUNTY, MINNESOTA
RELATED TO A PLAN TO FINANCE AND REFINANCE QUALIFIED 501(C)(3) SENIOR HEALTH CARE AND HOUSING FACILITIES
NOTICE IS GIVEN that the Minnesota Agricultural and Economic Development Board (the “Agricultural Board”) will meet by telephone, on Thursday, April 29, 2021, at 1:00 p.m., or as soon thereafter as reasonably possible (“Agricultural Board Hearing”) on the proposed plan of finance described in this notice. As required by Minnesota Statutes, Section 41A.0235 at least one member of the Agricultural Board will be present for the Agricultural Board Hearing at 1st National Bank Building, Suite E200, 332 Minnesota Street, St. Paul, Minnesota and some members will participate in the Agricultural Board Hearing by telephone or other electronic means. All interested persons may participate in the Agricultural Board Hearing by calling the toll-free number 888-742-5095 and entering in conference code number 979 223 6140 promptly at 1:00 p.m. on Thursday, April 29, 2021. Written comments may be submitted in advance of the Agricultural Board Hearing to the Agricultural Board Executive Director at the address set forth above prior to April 29, 2021.
NOTICE IS ALSO GIVEN that the Board of Commissioners (the “DEDA Board”) of the Duluth Economic Development Authority, St. Louis County, Minnesota (“DEDA”) will meet by telephone or other electronic means pursuant to Minnesota Statutes, Section 13D.021 on Wednesday, May 26, 2021, at 5:15 p.m., or as soon thereafter as reasonably possible (“DEDA Hearing”) on the proposed plan of finance described in this notice. The regular meeting place of the DEDA Board is the Duluth City Council Chambers at City Hall, 411 West First Street, in Duluth, Minnesota. At this time members of the DEDA Board do not intend to attend the DEDA Hearing in person; due to continually evolving restrictions and guidance from state and federal officials and agencies, the members of the DEDA Board will attend the DEDA Hearing remotely via telephone or other electronic means pursuant to Minnesota Statutes Section 13D.021. All interested persons may participate in the DEDA Hearing by (i) calling (844) 621-3956, entering Access Code 160 490 8938 and pressing 3 if they wish to speak, or (ii) visiting: http://dulutheda.org/live-meeting promptly at 5:15 p.m. on Wednesday, May 26, 2021. Written comments may be submitted to DEDA via its website at http://dulutheda.org/contact-us/ or via email at cfleege@duluthmn.gov, in advance of the DEDA Hearing.
The purpose of the Agricultural Board Hearing is to conduct a public hearing to provide host jurisdiction approval related to the proposed plan of finance further described in this paragraph. The purpose of the DEDA Hearing is to conduct a public hearing to provide issuer approval related to the proposed plan of finance further described in this paragraph. The proposed plan of finance is for DEDA to issue revenue obligations (the “Obligations”) in an aggregate principal amount not to exceed $150,000,000 in one or more series, whether taxable or tax exempt, under Minnesota Statutes, Chapter 462C and Sections 469.152 through 469.165, as amended, to finance and refinance projects owned, operated and managed by Benedictine Health System d/b/a Benedictine, a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”) and its affiliates, including without limitation:
Benedictine Care Centers; Bridges Care Center; Benedictine Health Center; City of Lakes Care Center; Koda Living Community f/k/a Steele County Communities for a Lifetime, Inc.; Madonna Meadows of Rochester; Madonna Summit of Byron, LLC f/k/a Living Services Foundation/Byron, LLC; Madonna Towers of Rochester, Inc.; Regina Senior Living; Saint Anne of Winona; St. Gertrude’s Health Center; Steeple Pointe Senior Living Community; and Villa St. Vincent (together, the “Borrower”). The Obligations will be “qualified 501(c)(3) bonds” under the Code.
Proceeds of the Obligations are expected to be used to refinance the following tax-exempt debt obligations (collectively, the “Refunded Obligations”) in the approximate outstanding principal amounts shown below, issued for the benefit of the Borrower, the proceeds of which were used to finance, refinance and reimburse the costs of constructing, improving, renovating, furnishing and equipping senior housing and health care facilities, at the locations indicated below:
(1)$2,500,000 Port Authority of Winona, Minnesota Housing Revenue Refunding Note, Series 2004 (Saint Anne of Winona Project), for facilities of Benedictine Living Community Winona located at 1347 West Broadway, Winona, Minnesota (“BLC-Winona”);
(2)$1,800,000 Port Authority of Winona, Minnesota Housing Facility Revenue Note, Series 2010 (Saint Anne of Winona Project), for facilities at BLC-Winona;
(3)$2,300,000 City of Ada, Minnesota Multifamily Housing Development Revenue Note, Series 2012A (Bridges Care Center Project), for facilities at Benedictine Living Community – Ada located at 201 Ninth Street West, Ada, Minnesota;
(4)$11,600,000 City of Shakopee, Minnesota Health Care and Housing Facilities Revenue Refunding Notes (Benedictine Health System Obligated Group) Series 2013A and Series 2013B, for facilities of: (A) Benedictine Living Community – Osseo located at 625 Central Avenue, Osseo, Minnesota (“BLC-Osseo”); (B) Benedictine Living Community – St. Gertrude’s located at 1850 Sarazin Street, Shakopee, Minnesota (“BLC-St. Gertrude”) (C) Benedictine Living Community – Minneapolis located at 618 East 17th Street, Minneapolis, Minnesota (“BLC-Minneapolis”);
(5)$4,200,000 DEDA Health Care Facilities Revenue Note, Series 2013 (Benedictine Health Center Project), for facilities at Benedictine Living Community – Duluth located at 925 Kenwood Avenue, Duluth, Minnesota (“BLC-Duluth”);
(6)$3,450,000 DEDA Health Care Facilities Revenue Note, Series 2014 (Benedictine Health Center Project), for facilities at BLC-Duluth;
(7)$4,200,000 Housing and Redevelopment Authority of Duluth, Minnesota (“HRA-Duluth”) Health Care Facilities Revenue Note, Series 2013 (Benedictine Health Center Project), for facilities at BLC-Duluth;
(8)$3,450,000 HRA-Duluth Health Care Facilities Revenue Note, Series 2014 (Benedictine Health Center Project), for facilities at BLC-Duluth;
(9)$6,000,000 HRA-Duluth Health Care Facilities Revenue Refunding Note, Series 2017 (Benedictine Health Center Project), for facilities at BLC-Duluth;
(10)$3,850,000 City of St. Paul Park, Minnesota Healthcare Facilities Revenue Bonds (Regina Senior Living Project) Series 2013, for facilities at Benedictine Living Community – Regina located at 1175 Nininger Road, Hastings, Minnesota (“BLC-Regina”);
(11)$4,500,000 City of Crookston, Minnesota Health Care Revenue Refunding Note, Series 2013A (Villa St. Vincent Project), for facilities at Benedictine Living Community – Crookston located at 516 Walsh Street, Crookston, Minnesota (“BLC-Crookston”);
(12)$7,200,000 City of Byron, Minnesota Amended and Restated Senior Housing Facility Revenue Notes (Living Services Foundation/Byron Project) Series 2014A, for facilities at Benedictine Living Community – Byron located at 551 Byron Main Court NE, Byron, Minnesota (“BLC-Byron”);
(13)$1,600,000 City of Byron, Minnesota Amended and Restated Subordinate Senior Housing Facility Revenue Bonds (Living Services Foundation/Byron Project) Series 2014B, for facilities at BLC-Byron;
(14)$6,500,000 City of Preston, Minnesota Healthcare Facilities Revenue Note, Series 2015 (Madonna Living Community of Rochester), for facilities of: (A) Benedictine Madonna Meadows located at 3035 Salem Meadows Drive SW, Rochester, Minnesota (“Madonna Meadows”); and (B) Benedictine Madonna Towers located at 4001 19th Avenue NW, Rochester, Minnesota (“Madonna Towers”);
(15)$6,500,000 City of Spring Valley, Minnesota Healthcare Facilities Revenue Note, Series 2015 (Madonna Living Community of Rochester), for facilities of: (A) Madonna Meadows; and (B) Madonna Towers;
(16)$8,600,000 City of Lauderdale, Minnesota Health Care Facilities Revenue Refunding Note (Benedictine Health System Obligated Group) Series 2016A, for facilities of: (A) Benedictine Living Community – Red Wing located at 135 – 213 Pioneer Road, Red Wing, Minnesota (“BLC–Red Wing”); and (B) Benedictine Living Community – New Brighton located at 1101 Black Oak Drive, New Brighton, Minnesota (“BLC-New Brighton”);
(17)$9,000,000 Goodhue County, Minnesota Health Care Facilities Revenue Note (Benedictine Health System Obligated Group) Series 2016B, for facilities at BLC–Red Wing;
(18)$4,300,000 City of Owatonna, Minnesota Nursing Facility Revenue Refunding Note (Steele County Communities for a Lifetime Koda Living Community Project), Series 2017, for facilities of Benedictine Living Community – Owatonna located at 2255 30th Street NW, Owatonna, Minnesota (“BLC-Owatonna”); and
(19)$8,600,000 Steele County, Minnesota Nursing Facility Revenue Refunding Note Steele County Communities for a Lifetime Koda Living Community Project), Series 2017, for facilities at BLC–Owatonna.
In addition, approximately $12,400,000 of the proceeds of the Obligations are expected to be used to finance, refinance and reimburse all or a portion of the costs for the constructing, improving, renovating, furnishing and equipping senior housing, other than independent living facilities, and related health care facilities in the approximate principal amounts at the locations indicated below: $5,500,000 at BLC-New Brighton; $300,000 at BLC-Red Wing; $600,000 at BLC-Duluth; $1,000,000 at BLC-Minneapolis; $300,000 at BLC-Owatonna; $200,000 at Madonna Meadows; $600,000 at Madonna Towers; $200,000 at BLC-Byron; $1,000,000 at BLC-Regina; $600,000 at BLC-Winona; $800,000 at BLC-St. Gertrude; $300,000 at BLC-Osseo; and $1,000,000 at BLC-Crookston.
The Borrower, at its discretion, may allocate up to the entire maximum principal amount of the Obligations to any of the above described projects to finance, refinance or reimburse all, a part, or none of the improvements at each location.
Portions of the projects financed or refinanced in whole or in part with proceeds of the Refunded Obligations are “housing programs” under Minnesota Statutes, Chapter 462C.
The Obligations and the interest thereon will be limited obligations of DEDA. The Obligations and the interest thereon will be payable solely from the revenue pledged to the payment thereof and other forms of security to be provided by or on behalf of the Borrower. Notwithstanding the foregoing, no holders of any of the Obligations will ever have the right to compel any exercise of the taxing powers of the State of Minnesota or any political subdivision thereof to pay the Obligations or the interest thereon or to enforce payment against any property of the State of Minnesota or any political subdivision thereof.
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