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Taft/2200 IDS Center <br />80 South 8th Street <br />Minneapolis, MN 55402 <br />Tel: 612.977.8400 | Fax: 612.977 8650 <br />taftlaw.com <br />Affirmative Action, Equal Opportunity Employer <br />June 6, 2022 Catherine J. Courtney <br />(612) 977-8765BY E-MAIL ccourtney@taftlaw.com <br />Chris Heineman <br />City Administrator <br />City of Little Canada <br />515 Little Canada Road E <br />Little Canada, MN 5 5117-163 3 <br />Re: Issuance of Conduit Revenue Bonds by the City of Little Canada for <br />Multifamily Affordable Housing Project known as Twin Lake Apartments <br />Dear Mr. Heineman: <br />1 his letter is provided to follow-up on prior actions and discussions regarding the City of <br />Little Canada (the City or Issuer”) acting as the issuer of multi family housing development <br />bonds (the “Bonds”) to finance the acquisition and construction of an approximately 60-unil <br />multifamily housing facility, to be known as Twin Lake Apartments, for low- and moderate- <br />income individuals and families to be located at the northwest corner of Twin Lake Boulevard and <br />Bankers Drive in the City, at the request of Twin Lake Limited Partnership, a Minnesota limited <br />partnership (the “Borrower”), with Twin Lake GP, LLC, a Miimesota limited liability company, <br />as the general partner, which is associated with Reuter Walton. Taft Stettinius & Hollister LLP <br />will act as bond counsel on the issuance of such Bonds. The Bonds will be purchased by Allianz <br />Life Insurance Company of North America, working with R4 Capital Funding LLC. <br />State and federal laws allow local government units to enter into arrangements to issue <br />bonds and^ loan the proceeds to private developers to finance or refinance affordable housing <br />projects. 1 his assistance reduces borrowing costs for such borrowers and enables them to provide <br />affordable housing for the residents of the City more cost effectively. It is a fairly common means <br />of obtaining necessary financing for such projects. Oftentimes such projects will also take <br />advantage of low-income housing tax credits, as is the case with this project. <br />To accomplish this purpose, the Issuer will enter into a Loan Agreement with the Borrower <br />under which the Borrower will agree to pay all principal and interest on the Bonds. The Issuer <br />will assign all of its rights to payments under the Loan Agreement to a lender or trustee (in this <br />case, U.S. Bank Trust Company, National Association) and loan the purchase price of the Bonds <br />directly to the Borrower. The Issuer is merely a conduit and the money and obligations flow only <br />between the lender or trustee and the Borrower. <br />The Bonds and the resolutions adopted by the Issuer will recite that the Bonds, if and when <br />issued, will not to be payable from or charged upon any of the Issuer’s funds, other than the <br />Taft Stettinius & Hollister LLP <br />Chicago / Cincinnati / Cleveland / Columbus / Dayton / Delaware / Denver / Indianapolis / Minneapolis / Northern Kentucky / Phoenix / Washington, DC <br />73846293VI