06-27-2025 Council Special Meeting Packet

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2 CITY OF LITTLE CANADA, MINNESOTA RESOLUTION NO. 2025-06-__ RESOLUTION GRANTING PRELIMINARY APPROVAL OF THE ISSUANCE CONDUIT REVENUE BONDS TO FINANCE THE COSTS OF A MULTIFAMILY HOUSING DEVELOPMENT UNDER MINNESOTA STATUTES, CHAPTER 462C; APPROVING THE SUBMISSION OF AN APPLICATION FOR AN ALLOCATION OF BONDING AUTHORITY; ESTABLISHING COMPLIANCE WITH CERTAIN REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE OF 1986; AND TAKING CERTAIN OTHER ACTIONS WITH RESPECT THERETO WHEREAS, the City of Little Canada, Minnesota (the “City”) is a statutory city, municipal corporation, and political subdivision duly organized and existing under the Constitution and laws of the State of Minnesota; and WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Housing Act”), the City is authorized to carry out the public purposes described in the Housing Act by providing for the issuance of revenue bonds or other obligations to finance or refinance multifamily housing developments located within the City. As a condition to the issuance of revenue bonds or other obligations under the Housing Act, the City must prepare and adopt a housing program providing the information required by Section 462C.03, subdivision 1a of the Housing Act (the “Housing Program”) and must conduct a public hearing in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986 (the “Code”), and the regulations promulgated thereunder (the “Regulations”), and the requirements of the Housing Act; and WHEREAS, Section 147(f) of the Code requires a duly noticed public hearing to be held by the Council on the proposed issuance of revenue bonds or other obligations and the location and nature of the proposed facilities to be financed. Section 462C.04, subdivision 2 of the Housing Act requires a public hearing to be held on the Housing Program after one publication of notice in a newspaper circulating generally in the City, within the required notice period set forth therein (as of the date of this resolution, at least 15 days before the hearing; after August 1, 2025, at least ten days before the hearing). Section 462C.04, subdivision 2 of the Housing Act further requires that on or before the day on which the notice of public hearing is published, the City submit the Housing Program to the Metropolitan Council for its review and comment as to whether such Housing Program furthers local and regional housing policies, among other things; and WHEREAS, under Section 146 of the Code, the Bonds (as hereinafter defined) must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of Minnesota Statutes, Chapter 474A, as amended (the “Allocation Act”), and preliminary approval of the issuance of the Bonds by the Council is sufficient to authorize the submission of an application to the State of Minnesota Management and Budget for an allocation of bonding authority with respect to the Bonds to finance the Project (as hereinafter defined); and WHEREAS, LC Developers LLC, a Minnesota limited liability company, its successors and assigns, or affiliates (the “Borrower”), has proposed that the City issue pursuant to the Housing Act its revenue bonds or other obligations in an aggregate principal amount not to exceed $17,250,000, in one or more series (the “Bonds”), the proceeds of which will be loaned by the City to the Borrower. The Borrower will apply the proceeds of such loan to: (i) the acquisition, construction, and equipping of an approximately 106-unit multifamily rental senior housing development and facilities functionally related and subordinate thereto, to be located at or about 99 County Rd B East in the City and known as Little Canada Senior