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MAYOR <br />Bill Blesener <br />COUNCIL <br />Rick Montour <br />John Keis <br />Michael McGraw <br />Shelly Boss <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 ADMINISTRATOR <br />www.ci.little- canada.lnn.us Joel R. Hanson <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: September 25, 2013 <br />RE: Montreal Courts — Termination of Regulatory Agreement <br />It is my understanding that Montreal Courts is being sold to another legal entity made up <br />of many of the same principals of Goldmark Properties and Montreal Courts, LLP. As <br />part of this transaction, they have asked us to terminate the Regulatory Agreement that <br />was executed at the time of the bond sale that financed the acquisition of Montreal Courts <br />by Housing Alternatives Development Company, a successor to Montreal Courts, LLP. <br />Termination of this Regulatory Agreement was provided for in the bond documents under <br />certain conditions. Those conditions have now been met. <br />Here is some key information for your consideration: <br />• The Tax Exempt bonds issued back in 1997 for the Montreal Courts Project were <br />paid in full back on 12/1/2007. (These were not direct obligations of the City.) <br />• Federal regulations related to the bond sale required that low income provisions <br />remain in effect for 15 years (2012). <br />• Briggs & Morgan has indicated it is acceptable for us to sign the Certificate of <br />Termination as drafted by Best & Flanagan. <br />• They were planning on closing this transaction on October 151 and we just <br />received the details of this matter over the last couple of days. <br />Based upon the information provided, staff recommends approval of the Certificate of <br />Termination as presented and that the Mayor and City Administrator be authorized to <br />execute same on behalf of the City. <br />3 <br />