In 2013, the City of Shakopee approved the issuances of Health Care and Housing Facilities Revenues Refunding Note Series 2013A and 2013B.  These were conduit debt issuances for Benedictine Health System.  The original proceeds financed various senior housing facilities, skilled nursing facilities, and long-term care facilities owned and operated by Benedictine Health System located in Shakopee, the City of Osseo, and the City of Minneapolis.

Benedictine Health System, through the Duluth Economic Development Authority (DEDA), is proposing the issuance of up to $150,000,000 of revenue bonds that would include the refinancing these previously issued bonds (2013A and 2013B).  This requires the City's consent to the refunding of bonds and the approval of a Cooperation Agreement between DEDA and the City relating to the exercise of joint power under the Housing Program for Multifamily Housing Developments.  The requirement is a result of the city being a "host city", because the original project was located in the City.  The resolution and agreement have been reviewed by by the City's bond attorney, Julie Eddington from Kennedy & Graven.

There is no financial obligation or financial impact to the City of Shakopee, the refunding bonds will be conduit debt of the Duluth Economic Development Authority.

Any costs associated with the refinancing, including City legal fees, will be the responsibility of the Benedictine Health Systems.