Sponsor: Finance
Title
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Authorization of the Partial Defeasance of Series 2016C Bonds of the Ramsey County Care Center Property
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Recommendation
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1. Authorize the County Manager to prepay the portion of the county’s Series 2016C Bonds related to the 2022 closure of the Ramsey County Care Center on its first optional call date through the partial defeasance of the Series 2016C Bonds. This action of defeasance will allow the county to deposit cash into a trust account and invest that cash in treasury bonds. The cash, including the investment interest earned, is sufficient to pay the bonds off on their first call date which is comes before the maturity date of the bond.
2. Approve the form, execution, and delivery of Escrow Agreement, together with any related documents necessary in connection therewith (collectively, the “Escrow Documents”).
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Background and Rationale
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In July 2022, services were ended in the Ramsey County Care Center. In the spring of 2023, the Ramsey County Board approved the sale of the Ramsey County Care Center building. With the sale of the Ramsey County Care Center building, Ramsey County needs to pay off all outstanding bonds on the property. The final pay-off of the related portion of the outstanding bonds, which were included in the Series 2016C Bonds, is approximately $573,617.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
The racial equity impact of the partial defeasance is unknown.
Community Participation Level and Impact
There is no community engagement for the partial defeasance of this bond.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The sale of the parcel results in additional revenue and the funds, based on the Ramsey County Board action, will be deposited into a Holding Project in the county’s 2023 Capital Projects Fund. This funding will off-set the pay-off of the Ramsey County Care Center bonds.
Last Previous Action
On May 23, 2023, the Ramsey County Board approved the sale of and Purchase and Sale Agreement for the Ramsey County Care Center property with NUWAY Alliance, in the amount of $5,250,000 (Resolution B2023-079).
On April 18, 2023, the Ramsey County Board authorized up to $6.5 million in General Fund Reserve for one-time costs related to the 2022 closure of the Ramsey County Care Center (Resolution B2023-059).
On March 14, 2023, the Ramsey County Board held a closed meeting to develop or consider offers or counteroffers for the purchase or sale of real property known as the Ramsey County Care Center in Maplewood, MN.
On March 8, 2022, the Ramsey County Board voted to affirm the County Manager’s recommended direction to close the Ramsey County Care Center (Resolution B2022-074).
Attachments
1. Proposed Schedule of Events - Series 2016C Partial Defeasance
2. Distribution List - Series 2016C Partial Defeasance
3. Ramsey County 2016C Escrow Agreement
4. Ramsey County 2016C Defeasance Resolution