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• FALCON HEIGHTS CITY COUNCIL MINUTES _4_ May 25, 2005 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 462Cr (continued) Administrator Worthington said the Council is not voting on this tonight. This evening the Council is being asked to adopt a resolution authorizing the publication of a notice of a public hearing on June 8, 2005, regarding the issuance of multifamily housing revenue bonds to finance a housing program under Minnesota Statutes, Chapter 462C. Council member Talbot said this seems like a good deal for Falcon Heights and its residents. This could create a $50,000 a year cash stream. In response to a question, Administrator Worthington said the initial contact about this came from Mary Ippel, the City's Bond Counsel with Briggs and Morgan. Council member Lamb said the City Council had extensive discussions about this at its Council workshops. The City can engage in this at no cost or liability to the City. The City is just agreeing to hold a public hearing about this. The City will get $25,000 on the revenue side. • Because of the City's financial situation and how little the City uses its bonding authority, the City can lend that ability to other municipalities. He thinks there will be more municipalities in this market. This is very much a winner. Everyone should be very pleased at the outcome of our work sessions. RESOLUTION 2005-06 Talbot moved adoption of Resolution 2005-06, outlined below, calling for a public hearing on a proposal for financing elderly housing facilities and authorizing publication of a notice of the hearing. The motion was unanimously approved. (a) WHEREAS, Minnesota Statutes, Section 462C, as amended (the "Act"), authorizes municipalities to finance the acquisition and construction of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Section 46X.07 of the Act provides that such programs for multifamily housing developments may be financed through the issuance of revenue obligations payable exclusively from the revenues of the program or developments; and (b) WHEREAS, the City Council of the City of Falcon Heights, Minnesota (the "City"), has received from Pines of Hutchinson, LLC, a Minnesota limited liability company (the "Borrower"), a proposal that the City assist in financing a project hereinafter described, through the issuance of revenue bonds (the "Bonds") by the City pursuant to a Joint Powers Agreement between the City and the City of Hutchinson, Minnesota ("Hutchinson"); and (c) The Borrower or a related entity proposes to acquire a 50-unit independent senior • housing facility located at 1015 Century Avenue SW in Hutchinson; and 4