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Policy Number: FR-023 <br />Pages:3 <br />Subject: Conduit Debt Policy <br />Approved: October 2022 <br />1.0 Introduction <br />Standard Operating Policy <br />City of Oakdale <br />Amended: <br />1.1 Under the Minnesota Municipal Industrial development Act, Minnesota Statutes, Sections <br />469.152 to 469.165 (the "Industrial Development Act"), the City of Oakdale , Minnesota has <br />authority to issue revenue bonds or notes to attract or promote economically sound industry and <br />commerce to the City, including the development of facilities by qualified 501(c)(3) organizations. <br />1.2 Under Minnesota Statutes, Chapter 462C (the "Municipal Housing Act") the City is authorized to <br />issue housing revenue bonds to finance multi-family residential housing projects for low and <br />moderate income persona and elderly persons. <br />1.3 The City Council is aware that such financing for certain private activities may be of benefit to the <br />City and will consider requests for tax exempt financing subject to these Guidelines. The City <br />Council considers tax exempt financing to be a privilege, not a right. <br />1.4 It is the judgment of the City Council that tax exempt financing is to be used on a selective basis <br />to encourage certain development that offers a benefit to the City as a whole, including <br />employment and housing opportunities. It is the applicant's responsibility to demonstrate the <br />benefit to the City. The applicant should understand that although approval may have been <br />granted by the City for the issuance of financing for a similar project or a similar debt structure <br />that is not a basis upon which approval will be granted. Each application will be judged on the <br />merits of the project as it relates to the public purposes of the Housing Act or the Industrial <br />Development Act and the benefit to the City at the time the request for financing is being <br />considered <br />2.0 General Requirements <br />2.1 The City Council will consider tax exempt financing for manufacturing and health care facilities, <br />and other facilities operated by qualified 501(c)(3) organizations, under the Industrial <br />Development Act; and housing projects under the Housing Act. An applicant for tax-exempt <br />financing pursuant to the Industrial Development Act must submit to the City the application <br />attached to these Guidelines. <br />2.2 The project must be a positive benefit to the City. The project must be of a nature that the City <br />wishes to attract, or an existing business which the City wishes to retain or expand within the City, <br />considering employment opportunities, incentive for further development, impact on City <br />services, and support for the industrial, commercial or health care operations currently located in <br />the City. A housing project must provide significant housing opportunities for low and moderate <br />income persons, those with physical disabilities, or the elderly. <br />2.3 The City Council will, if requested, grant an applicant a pre -application review. The purpose of the <br />pre-application review is to inform applicants of the possibility of rejection or the possible basis <br />for such a rejection. The fact that the project is not rejected at the pre-application stage is not to <br />be construed as approval of the project or as an indication that the project will be approved upon <br />formal request to the Council. Requests for tax-exempt financing may be rejected by the City <br />whether or not the project was submitted to a pre-application review and regardless of the <br />1