Prior Lake signs off on financing for McKenna Crossing’s 72 new senior units
Updated Sept. 23: The City Council gave host approval on a voice vote Tuesday, Sept. 22, after the public hearing, according to the meeting video.
On Tuesday night, the Prior Lake City Council gave host approval for the financing of a 72-unit independent living expansion at McKenna Crossing, 13810 Shepherds Path NW. The resolution passed on a voice vote after a public hearing, according to the meeting video. Shepherd’s Path Senior Housing, an affiliate of Presbyterian Homes, is behind the expansion, according to the council’s agenda packet.
The approval lets the City of Mayer issue tax-exempt senior housing revenue notes of up to $30 million to pay for the construction, improvement and equipping of the expansion. Federal and state law require the city where a project sits to approve another city issuing bonds for it, and the resolution also approves a joint powers agreement between the two cities, the staff report says.
The report says the city expects no financial impact. Shepherd’s Path has agreed to pay any costs Prior Lake incurs, whether or not the notes are issued, and the notes would be payable only from what Shepherd’s Path pays Mayer under the loan agreements, never from the credit or taxing powers of either city. Prior Lake will not issue the bonds itself and will not collect an issuer fee.
Mayer is scheduled to take up the notes on Sept. 28, and issuance is expected in the fourth quarter of 2026.
What's next: The City of Mayer is scheduled to take up the notes Sept. 28, and issuance is expected in the fourth quarter of 2026.