12-17-1997 Council Agenda - Laserfiche WebLink

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12/02 18:48 1927 PROM: 812 347 0600 TO: 8122238460 PAGE: 3 Sear by: WINTHROP WEINSTINE 812 347 0800 12/02/07 1:41Ptt jet& Job 747 Page 3/5 TAX CREDIT USAGE AGREEMENT THIS AGREEMENT is made and catered into as of December 1997 by and between the City of Little Canada. Minnesota, a minacies' corporation tegumized under the laws of the State of Minnesota (the "City") and Little Canada Leased Housing Associates, L.L.P., a Minnesota limited liability partnership (die "Partnership"). RECITALS The Partnership is the owner of h multifamily rental housing development Ieuown u the "Provinces of Little Camels" (Life "Praea") Ideated in the City of Little Canaria and ton:dating of approximately 118 residual rental units. The City has previously entered into that certain Indenture of Trust between the City of Little Canada, lbfirmaron s and First Trust National As oc:Won dated sa of itcbruaty 1. I996 (the "Indenture"). Pursuant 10 the Indenture, the City has issued Multifamily Housing Revenue Bonds, Series 1946 in the aggregate areaum of 53,885,0110 (the "Bonds"). and subsequently loaned to the Partnership for use in the Project pursuant to that certain Loan Agreement entered into by the City and Partnership and dated as of lcbwsty 1, 1996. The interest on the Bonds is intmdtd to be exempt from federal taxation under section 103 of the Internal Revenue Code of 1986. The Partnership intends for a portion of the Project to qualify fat, and the Partnership intends to claim, low income housing tax credits (the "Credits") with rev= to the eligible portion of the Project undo+ section 42 of the Internal Revenue Code of 1986 (the "Code"). In connection with the Projects eligibility for Credits, the Puruterahip intends CO request that the City update and sunersede its previous determination under section 42(ntx2)(D) of the Internal Revenue Code of 1986 (the "Section 42(m) Determination") regarding the Projects need for the amount of Credits generated by the Project. ZThe rehabilitation required in connection with the imams of the Bonds and the qualification for Credits has been completed and the costs with respect therein have been certified. , iP connection with the section 42(m) Determination, the City and the Partnership desire to clarify certain issues with respect to the operation of the Project and the percentage of the Project which would be eligible for Credits. 9/7 d LOSd£LI9g£ 'OH/S£ :9I /L7:91 L6 20 '71 (Gail Page 58 YiVeFlt ? SDO1E2 AOH