12-20-2023 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Chris Heineman, City Administrator DATE: December 20, 2023 RE: Issuance of Conduit Revenue Bonds by the City of Little Canada for a Multifamily Affordable Housing Project known as Rice & Demont. ACTION TO BE CONSIDERED: The City Council is asked to adopt a resolution that ratifies and affirms the resolution adopted in June, 2023 regarding the Rice & Demont project and authorizes staff to work with bond counsel to submit an application to Minnesota Management and Budget for allocation. BACKGROUND: The City of Little Canada has partnered with Reuter Walton on two 60-unit multifamily apartment buildings north of Twin Lake Boulevard. Both of these projects utilized tax credits through the issuance of bonds that were awarded by the Minnesota Management and Budget (MMB) office. Reuter Walton is applying to MMB for the same source of funding for the proposed 160-unit multi- family apartment building which will be located at Rice Street and Demont. As with the Lica and Litmore Apartment projects, the proposed project at Rice and Demont will also include several high-end common area amenities such as 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. Reuter Walton initially submitted a tax credit application to Minnesota Housing in June, 2023 but was notified by MMB that the proposed project at Rice and Demont did not receive an award due to the high number of applications and insufficient funds. Reuter Walton was placed on the priority list, and they are hopeful that the project will receive the tax credit appropriation in January, 2024. Additional information is provided in the attached memo from bond attorney Catherine Courtney. RECOMMENDED ACTION: City staff recommends City Council approval of a resolution that ratifies and affirms the resolution adopted in June, 2023 regarding the Rice & Demont project and authorizes staff to work with bond counsel to submit an application to Minnesota Management and Budget for allocation.