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<br /> <br /> STAFF REPORT <br /> <br /> <br />TO: Mayor Fischer and Members of the Little Canada City Council <br /> <br />FROM: Ben Harrington, AICP, Community Development Director <br /> <br />DATE: June 27, 2025 <br /> <br />RE: Conduit Bond Support Request – 99 County Road B – Lupe Development <br /> <br />ACTIONS TO BE CONSIDERED <br />Consider a resolution granting preliminary approval for LUPE Development’s request for conduit <br />revenue bonds to finance a 106-unit senior affordable housing development at 99 County Road B. <br /> <br />BACKGROUND <br />LUPE Development has submitted a request for the City of Little Canada to adopt a resolution granting <br />preliminary approval of the issuance of conduit revenue bonds in the amount of $17,000,000, with a <br />not to exceed approval of $17,250,000. The bonds are to support its proposed affordable senior <br />housing project at 99 County Road B. The proposed development includes 106 units of income- <br />restricted rental housing for seniors. <br /> <br />As discussed at the June 23rd Workshop, City Staff are supportive of the bond request. As outlined in <br />the memorandum from bond counsel (Taft) (see Attachment A), the proposed issuance carries no <br />financial obligation for the City and offers several benefits: <br />• The bonds are conduit financing only; LUPE is solely responsible for repayment and issuance <br />costs. <br /> <br />• The issuance does not count against the city’s $10 million bank-qualified bonding limit, <br />preserving flexibility for municipal or nonprofit projects in 2025. <br /> <br />• There is no impact on the City’s credit rating or general obligation bonding capacity. <br /> <br />• The city would receive a one-time issuer’s fee equal to half of one percent of the total bond <br />amount ($85,000). <br /> <br />• Preliminary approval strengthens the project’s position in future bond rounds and enables <br />reimbursement of eligible pre-issuance costs. <br /> <br />Following discussion on the June 23rd Workshop, the City Council gave direction to move the <br />inducement resolution forward for formal consideration at a special meeting on June 27 at 4:00 PM as <br />LUPE has requested that the city adopt a resolution of support by June 30 to meet the Minnesota <br />Management and Budget (MMB) bond application deadline. <br /> <br />The City’s bond counsel, Catherine Courtney of Taft, has provided a memorandum outlining the bond <br />request and associated procedures. <br /> <br />RECOMMENDATION