04-26-2023 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Chris Heineman, City Administrator DATE: April 26, 2023 RE: Issuance of Conduit Revenue Bonds by the City of Little Canada for a Multifamily Affordable Housing Project known as Lica Apartments. ACTION TO BE CONSIDERED: The City Council is asked to conduct a Public Hearing and consider approval of several agreements and a Final Resolution for the Issuance of Conduit Revenue Bonds by the City of Little Canada for a Multifamily Affordable Housing Project known as Lica Apartments. BACKGROUND: The City of Little Canada has partnered with Reuter Walton on the development of two 60-unit multifamily apartment buildings north of Twin Lake Boulevard since the fall of 2021. The City of Little Canada sold two parcels to the developer and provided additional assistance through a TIF Loan for Phase I of the project. The Public Hearing for the issuance of conduit revenue bonds is for the second of two 60-unit buildings to be developed on the site. Similar to Phase I, the Lica Apartment project will include a 3-story wood framed structure over one level of underground parking. The project also includes several high-end common area amenities including on-site management, fitness center, community room and underground parking all at no additional cost to the residents. The unit mix will be targeted towards working families with children and feature a majority of two-and three-bedroom layouts. Units will also have in unit washer and dryer, energy star appliances and open floor plans. As in Phase I, Reuter Walton submitted an application for LIHTC tax credits to Minnesota Housing in January of 2023. Reuter Walton was notified by the Minnesota Department of Management and Budget (MMB) that the Lica Apartment project was awarded an allocation of tax credits. The next step in the issuance of the Bonds is to hold the public hearing and adopt a resolut ion that adopts the housing program and approves the issuance and sale of bonds for the project. The City Council approved a resolution on December 14, 2022 which authorized the City of Little Canada to issue Housing Revenue Bonds for the Lica Apartment project. Other than the utilization of the City of Little Canada’s bonding authority to issue tax exempt bonds in the amount of $9,705,850 for the Lica Apartments, Reuter Walton is not requesting additional funding from the City of Little Canada for Phase II of this project.