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<br />173615857v1 <br /> <br /> <br /> <br />Taft Stettinius & Hollister LLP / Taftlaw.com / The Modern Law Firm <br />Catherine J. Courtney <br />612.977.8765 <br />CCourtney@taftlaw.com <br />2200 IDS Center, 80 South 8th Street <br />Minneapolis, MN 55402-2210 <br />Tel: 612.977.8400 | Fax: 612.977.8650 <br />taftlaw.com <br />Affirmative Action, Equal Opportunity Employer <br /> <br />June 17, 2025 <br />BY E-MAIL <br />Laura Linehan <br />Acting City Administrator <br />City of Little Canada <br />515 Little Canada Road E <br />Little Canada, MN 55117-1633 <br />Re: Issuance of Conduit Revenue Bonds by the City of Little Canada for Multifamily <br />Affordable Senior Housing Project known as Little Canada Senior Housing <br />Dear Ms. Linehan and Councilmembers: <br />This letter is provided to follow up on discussions regarding the City of Little Canada (the “City” <br />or “Issuer”) acting as the issuer of multifamily housing development bonds (the “Bonds”) to finance the <br />acquisition and construction of a multifamily senior housing development for households of low and <br />moderate income, and functionally related facilities, expected to be known as Little Canada Senior Housing, <br />located at or about 99 County Road B East, in the City (the "Project"), at the request of LC Developers <br />LLC, a Minnesota limited liability company, its successors and assigns, or affiliates (the “Borrower”), <br />which is associated with Lupe Development Partners. Taft Stettinius & Hollister LLP (“Taft”) will act as <br />bond counsel on the issuance of such Bonds. <br />The Borrower is requesting the City adopt a resolution giving preliminary approval to the issuance <br />of Bonds for the Project, which authorizes the submission of an application to Minnesota Management and <br />Budget (“MMB”) for an allocation of bonding authority. The Borrower is requesting that application be <br />submitted for the June 30th application cycle. <br />State and federal laws allow local government units to enter into arrangements to issue bonds and <br />loan the proceeds to private developers to finance or refinance affordable housing projects. This assistance <br />reduces borrowing costs for such borrowers and enables them to provide affordable housing for the <br />residents of the City more cost effectively. It is a fairly common means of obtaining necessary financing <br />for such projects. Oftentimes such projects will also take advantage of low-income housing tax credits, as <br />is the case with this Project. <br />To accomplish this purpose, the Issuer will enter into a Loan Agreement with the Borrower under <br />which the Borrower will agree to pay all principal and interest on the Bonds. The Issuer will assign all of <br />its rights to payments under the Loan Agreement to a lender or trustee and loan the purchase price of the <br />Bonds directly to the Borrower. The Issuer is merely a conduit and the money and obligations flow only <br />between the lender or trustee and the Borrower.