St. Paul Park holds public hearing on up to $52 million conduit bonds for Presbyterian Home Services; council to consider approval May 18

The St. Paul Park City Council on May 4 held a public hearing on a proposal to issue conduit bonds in one or more series not to exceed $52,000,000 to provide a loan to Presbyterian Home Services and affiliated nonprofit entities.

Mayor Frank outlined the financing plan and described the bonds as limited obligations "payable solely by the payments to be made by the borrower to the city under a loan agreement related to the bonds," and said the bonds would not be secured by the city's taxing power or assets. The purpose identified in the hearing record was to refinance outstanding obligations issued in 2017 that had been used to finance the acquisition and improvement of a senior housing facility commonly known as Norris Square.

Council member Swenson asked whether using the city's conduit role would affect the city's borrowing capacity. Lonnie Grellen, speaking for city administration, said, "We do not anticipate needing to bond for anything in calendar year 2026," and noted the city has liquid assets and potential workarounds in case an emergency borrowing need arises. Council members were told the matter will return to the council for formal approval at the regularly scheduled May 18 meeting.

No public comments were offered during the hearing, and no vote was taken on May 4. The council will consider approving the issuance and related documents at the May 18 meeting as noted in the hearing notice.