Resolution - 25-13: Termination of Regulatory Agreement - Pres. Homes Extract of Minutes of a Meeting of the
City Council of the City of Spring Park
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Spring Park was duly held in the City of Spring Park, Minnesota, on December 1, 2025, at 6:00
o'clock P.M.
The following members were present: Mayor Chase, Council Members Horton, Sippel,
Suttle, and Turner
and the following were absent: no Council Members were absent.
During said meeting, Council Member Horton introduced the following resolution and
moved its adoption:
RESOLUTION NO. 25-13
RESOLUTION APPROVING: (i) THE TERMINATION OF A REGULATORY
AGREEMENT AND AUTHORIZING THE EXECUTION THEREOF RELATED TO THE
HOUSING AND HEALTH CARE REVENUE REFUNDING NOTE, SERIES 2014C
(PHS/LAKE MINNETONKA CAMPUS PROJECT); AND (ii)THE TERMINATION OF
AGREEMENT FOR PAYMENTS IN LIEU OF TAXES
WHEREAS,
(a) The City of Spring Park, Minnesota (the "City") has previously issued its
Housing and Health Care Revenue Refunding Note, Series 2014C (PHS/Lake Minnetonka
Campus Project) (the "Note"),which, at the request of PHS/Lake Minnetonka, LLC, a Minnesota
limited liability company (the "Borrower"), the sole member of which is Presbyterian Homes
Housing and Assisted Living, Inc., a Minnesota nonprofit corporation ("Presbyterian Homes"),
and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended (the "Code"), refinanced, in part, the outstanding principal amount of the $28,000,000
Housing and Health Care Revenue Note, Series 2010 (PHS/Lake Minnetonka Campus Project)
issued by the City of Spring Park, Minnesota (the "Series 2010 Note"), which was issued to
finance, in part, the acquisition, construction, and equipping of affordable multifamily housing
facilities located at 4599 Shoreline,4601/09 Shoreline Drive, and 2380 Island Drive in the City of
Spring Park, Minnesota(collectively, for the purposes of this Resolution, the "Project");
(c) The City has been advised by representatives of the Borrower that it intends
to sell the Project and to partially prepay and redeem that portion of the Note applicable to the
Project; Pursuant to an Amended and Restated Regulatory Agreement(Park Hill, Park Hill North
and Shoreview Apartments), as amended by that certain First Amendment to Amended and
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Restated Regulatory Agreement(Park Hill, Park Hill North and Shoreview Apartments),between
the Borrower, the City, the City of Chanhassen, Minnesota,the City of St. Bonifacius, Minnesota,
and Northeast Bank (together, the "Regulatory Agreement "), certain rental restrictions are
imposed on the Project;
(d) Pursuant to an Agreement for Payments in Lieu of Taxes between
Presbyterian Homes and the City (the "PILOT Agreement") certain amounts would become
payable to the City during each calendar year in which sums remain due under the Note if, in such
year, the Property generated less in real estate taxes (through either exemption or reclassification)
than it would have if the Property were classified for taxation purposes as it was on January 2,
2007.
(e) Presbyterian Homes assigned and conveyed to Borrower all of its right,title,
and interest in and to the PILOT Agreement pursuant to that certain Assignment and Assumption
of Agreement for Payments in Lieu of Taxes (the "Assignment").
(f) In connection with the sale of the Project and the partial prepayment of the
Note,the rental restrictions imposed under the Regulatory Agreement will no longer be applicable.
Moreover, the Property is neither exempt from taxation nor in a tax classification that generates
less in real estate taxes than the Property would generate if it were classified for taxation purposes
as it was on January 2, 2007.
(g) Borrower and Presbyterian Homes have requested that the Regulatory
Agreement, the PILOT Agreement, and the Assignment be terminated; and
(h) Copies of the proposed form of the Termination of Regulatory Agreement
and Termination of Agreement for Payments in Lieu of Taxes have been presented to the City
Council in connection with its consideration of this Resolution, and have been submitted to the
City Council.
NOW, THEREFORE, IT IS HEREBY RESOLVED, by the City Council of the City of Spring
Park, as follows:
1. The proposed Termination of Regulatory Agreement and Termination of
Agreement for Payments in Lieu of Taxes are hereby approved in substantially the form presented
to the City Council, together with such additional details therein as may be necessary and
appropriate and such modifications thereof, deletions therefrom, and additions thereto as may be
necessary and appropriate and approved by Taft Stettinius & Hollister LLP, Bond Counsel to the
City, prior to the execution thereof. The Mayor and the City Administrator of the City are
authorized to execute the Termination of Regulatory Agreement and Termination of Agreement
for Payments in Lieu of Taxes in the name of and on behalf of the City. In the event of the absence
or disability of the Mayor or the City Administrator such officers of the City as, in the opinion of
the City Attorney, may act on their behalf, shall without further act or authorization of the City
Council do all things and execute all instruments and documents required to be done or executed
by such absent or disabled officers. The execution of any instrument by the appropriate officer or
officers of the City herein authorized shall be conclusive evidence of the approval of such
documents in accordance with the terms hereof.
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STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF SPRING PARK
I, the undersigned, being the duly qualified and acting City Clerk of the City of Spring
Park, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes
with the original thereof on file in my office,and that the same is a full,true and complete transcript
of the minutes of a meeting of the City Council duly called and held on the date therein indicated,
insofar as such minutes relate to a resolution authorizing the termination of a regulatory agreement.
WITNESS my hand this Yd day of December, 2025.
Jamie Hoffman, VWrk
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Adopted by the City Council of the City of Spring Park, Minnesota, this 1st day of
December, 2025.
Mark Chase, Mayor
ATTEST:
a ie HoffinanWCW)St6rk
The motion for the adoption of the foregoing resolution was duly seconded by Council
Member Turner, and after full discussion thereof and upon vote being taken thereon,the following
voted in favor thereof: All in favor 5-0
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
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