06-08-2022 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JUNE 89 2022 approval to issue the bonds. He noted the City is able to charge a fee to do this and will receive about $46,000. Keis opened the public hearing. There were no comments from the public. Upon motion by Fischer, seconded by McGraw, the public hearing was closed. Fischer introduced the following resolution and moved its adoption: RESOL UTION NO. 2022-6-73 — APPROVE ISSUANCE AND SALE OF A MULTI - FA MIL Y HO USING REVENUE NOTE (TWIN LAKE APARTMENTS PROJECT), SERIES 2022, AND APPROVE A HOUSING PR0GRAMPURSUANT TO MINNES0TA STATUTES CHAPTER 462C The foregoing resolution was duly seconded by McGraw. Ayes (4). Nays (0). Resolution declared adopted. PUBLIC HEARING — APPROVING A WRITTEN SPENDING PLAN FOR TAX INCREMENT FINANCING (REDVELOPMENT) DISTRICT NO.3-2, TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 3-3 AND TAX INCREMENT FINANCING (RENEWAL & RENOVATION) DISTRICT NO. 5-1 Mikaela Huot, Baker Tilly, stated that the City of Little Canada has received an application for financial assistance through Tax Increment Financing (TIF) to assist with financing a portion of the extraordinary development costs related to the construction of a new 60-unit multifamily affordable housing project. She reported the total development cost of the project is approximately $19.5 million and will be financed with a combination of debt financing, tax credits, deferred developer fee and Ramsey County grant funding. She stated the developer has requested financial assistance of $1,000,000 from the City through Tax Increment Financing. She explained that the developer's initial request for assistance was through the establishment of a new tax increment financing housing district, but upon further review of the City's existing tax increment districts, it was determined that the City had an alternate option of providing upfront assistance to the developer that would not require the establishment of a new TIF district. She stated that under this option, the City will use the temporary transfer authority and use unobligated tax increment funds. She explained the City would be providing a deferred loan to the developer of up to $1,000,000 to be provided after inspection and final approval of the footings and foundation. She stated the developer would then make annual interest -only payments to the City for 17 years with a balloon principal payment in year 17 that coincides with the developer's anticipated refinancing. She stated that the loan agreement will be considered at the June 20, 2022 City Council meeting. She reviewed the loan agreement terms. Keis opened the public hearing. Fischer stated that this is a unique opportunity for the City to be able do this type of funding to help with this project and he is happy to be able to do this. There were no comments from the public. Upon motion by Fischer, seconded by Miller, the public hearing was closed. 2