CCAgenda_05May25 - Laserfiche WebLink

Home Browse Search

• POLICY H2 5/25/05 ITEM: Notice of intent to hold a public hearing regarding the issuance of multifamily housing revenue bonds to finance a housing program under Minnesota Statutes, Chapter 462C SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Mary Ippel, Falcon Heights Bond Counsel, Briggs & Morgan Dave Callister, Financial Consultant, Ehlers Associates EXPLANATION: Summary: At their February workshop, the Council discussed the issue of conduit bonding as an alternate revenue source for Falcon Heights. The City has the authority to conduit issue up to $10 Million in bank-qualified, tax-exempt (501(c)3) bonds each year. The City lends its authority to a qualified non-profit, tax-exempt entity, and can take an administrative fee in return for lending this authority. Maplewood Senior Housing has agreed to a fee of $25,000, or slightly less than .5% of the total issue of $5,500,000. There is no financial risk to the City, and this conduit bonding does not affect the City's bond rating. • The City of Hutchinson, MN, is asking Falcon Heights to utilize its conduit bonding authority in order to help with the issuance of housing bonds for Maplewood Senior Housing, Inc., a Minnesota non- profit corporation and tax-exempt 501(c)3 organization. These bonds will be utilized to construct a 50- unit independent senior housing facility located on a 2.53 acre project site at 1015 Century Avenue SW in Hutchinson. The City of Hutchinson has agreed to lend host approval to this transaction, due to their inability to act as a conduit for these bonds because they are near the bank-qualified limit for 2005. ATTACHMENTS: • Public Hearing Notice on page o~ • Program Description on pages 3-a • Resolution 2005-06 on pages - ACTION REQUESTED: • Approve the legal notice for a public hearing on the issuance of multifamily housing revenue bonds to finance a housing program under Minnesota Statutes, Chapter 462C r~ ~i