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PUBLIC HEARINGS F1 6/8/05 ITEM: Public hearing on a housing program and 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: Trudy Halla, Briggs & Morgan Dave Canister, Financial Consultant, Ehlers Associates EXPLANATION: Summary: At the 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 or repayment liability 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, The Pines of Hutchinson, LLC, 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 their bank-qualified limit for 2005. ATTACHMENTS: • Resolution 2005-07 on pages - 3 • Joint Powers Agreement on pages y • Program Documentation on pages - • Loan agreement extract showing administrative fee to be paid to Falcon Heights on page ~_ ACTION REQUESTED: • Discussion • Motion to approve Resolution 2005-07 and the joint-powers agreement with the City of Hutchinson, MN for the issuance and sale of up to $5,500,000 Senior Housing Revenue Bonds for the Pines of Hutchinson, LLC Project, Series 2005A and 2005B 8