06-08-2022 Council Packet - Laserfiche WebLink

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City of Little Canada June 6, 2022 Page 2 revenues received under the Loan Agreement and pledged to the payment of the Bonds, and the Issuer is not subject to any liability on the Bonds. No holder of the Bonds will ever have the right to cornpel any exercise by the Issuer of its taxing powers to pay any of the principal of the Bonds or the interest or premium thereon, or to enforce payment of the Bonds against any property of the Issuef except the interests of the Issuer in payments to be made by the Borrower under the Loan Agreement. The Bonds will not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the Issuer, except the interests of the Issuer in payments to be made by the Borrower under the Loan Agreement. The Bonds are not moral obligations on the part of the State or its political subdivisions, including the Issuer, and the Bonds will not constitute a debt of the Issuer within the meaning of any constitutional or statutory limitation. The issuance of the Bonds will not affect the Issuer’s credit rating on bonds it issues for municipal purposes. Unlike the 501(c)(3) bonds that the City is familiar with, multi family housing development bonds are not applied against the City’s $10,000,000 calendar year-limit on bank-qualified bonds. Therefore, the City may issue the Bonds, while still maintaining its ability to issue up to $10,000,000 of bank-qualified bonds for itself or 501(c)(3) organizations in 2022. -- The City’s one-time issuer administration fee of 'A of 1% would be calculated based on the principal amount of the Bonds actually issued, which will be $9,319,750, resulting in a fee of $46,598.75. The Bonds will be issued in accordance with Minnesota Statutes, Chapter 462C. The City Council previously approved the submission of an application for volume cap allocation, which was made to Minnesota Management and Budget (“MMB”) in January. Having received the award of an allocation by MMB, the Issuer must also hold a public hearing on the housing program related to the project and the financing. The housing program was submitted to the Metropolitan Council for its review but, as of the date hereof, the Metropolitan Council has provided no comment. Receipt of comment is not necessary for holding the public hearing or approving or issuing the Bonds. The next step in the issuance of the Bonds is to hold the public hearing and to adopt a resolution, which has been provided to the City by Taft Stettinius & Hollister LLP, that adopts the housing program and approves the issuance of the Bonds. It is proposed that this will occur at the City Council meeting on June 8‘^ following the public hearing. 73846293vl