Shakopee approves conduit refunding bonds for Benedictine Living Community

Shakopee City Council voted Sept. 16 to adopt a resolution enabling Benedictine Living Community of Shakopee LLC to issue conduit revenue refunding bonds to refinance previously issued bonds for the existing senior care facility at 1705 Windermere.

City staff and bond counsel told the council the project consists of 116 independent living apartments, 43 assisted‑living units and 24 memory‑care units. Julie Eddington, the city’s bond attorney, said the borrower requested refunding bonds with a principal amount up to $65,000,000; she characterized that figure as a maximum used for underwriting and said final pricing will likely be lower. Eddington and staff emphasized the bonds are conduit debt, meaning the city will not carry financial liability and refinancing costs and legal fees are the responsibility of the borrower.

Council members asked whether proceeds could be placed into a capital account for improvements and for information about how much principal had been paid on the original bonds; staff and bond counsel said they did not have payoff details on hand and that the refinancing’s precise terms and interest rates will be set by underwriters in a preliminary official statement.

With no members of the public speaking on the item, Councilor Delaney moved to adopt the bond resolution and authorize the necessary documents; Councilor Contreras seconded and the motion passed by voice vote.

Next steps include finalizing the preliminary official statement and completing the underwriting process; staff said they would provide additional payoff and pricing detail as it becomes available.