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<br /> <br /> <br /> <br /> <br />STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Fischer and Members of City Council <br />FROM: Chris Heineman, City Administrator <br />DATE: December 20, 2023 <br />RE: Resolution for Thomson Flats Conduit Bond Issuance <br /> <br /> <br />ACTION TO BE CONSIDERED <br />The City Council is asked to adopt a resolution that gives preliminary approval for the <br />issuance of conduit revenue bonds by the City of Little Canada for a Multifamily Affordable <br />Revenue Housing Project known as Thomson Flats located in West St. Paul. <br /> <br />BACKGROUND <br />City staff has received a request from Reuter Walton to utilize our tax-exempt bonding authority <br />to assist with a multifamily housing project in West St. Paul. Neither the City of West St. Paul or <br />the Dakota County Community Development Agency (CDA) are in a position to issue conduit <br />bonds for this project due to several pending projects and proposed bond issuance. State and federal <br />laws permit local governmental units to issue such bonds for projects located outside of such <br />government's jurisdiction, provided certain requirements are met. <br /> <br />The City of Little Canada is allowed to issue up to $10,000,000 of bank-qualified bonds for itself <br />or 501(c)(3) organizations each year, however multifamily housing development bonds are not <br />applied against this limit. The City of Little Canada has issued conduit debt to assist with a number <br />of multifamily housing projects in recent years. <br /> <br />The issuance of bonds will not constitute a debt or affect the City of Little Canada’s bond rating. <br />One of the additional benefits of issuing conduit debt is that it provides a .05% administration fee, <br />which can provide between $15,000 to $50,000 in revenue for the City. This fee is typically <br />utilized for economic development purposes. The attached letter from Catherine Courtney <br />provides additional technical information related to conduit bond issuance and some specific <br />information about the proposed Thompson Flats project. <br /> <br />RECOMMENDED ACTION <br />Staff recommends that the City Council adopt a resolution that gives preliminary approval for the <br />issuance of Conduit Revenue Bonds by the City of Little Canada for a Multifamily Affordable <br />Revenue Housing Project known as Thomson Flats located in West St. Paul and authorizes staff <br />and bond counsel to make application for an allocation to MMB.