Minutes - 2010/07/12 - Laserfiche WebLink

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Mounds View City Council July 12, 2010 Regular Meeting Page 4 Finance Director Beer stated that the City Council was introduced to the economic development • tool of the conduit debt financing at the May work session. Select Senior Living of Mounds View, LLC, had requested the Council consider this financing tool for their senior housing project. The Council was supportive of moving forward with the use of conduit debt financing. There are a number of steps that will need to happen before housing revenue bonds can be issued. Finance Director Beer indicated the Council needs to grant preliminary approval and authorize submission of an application to the Minnesota Office of Management and Budget for an allocation of bonding authority from the State pool. Staff recommends the Council review the information and approve the Resolution. Council Member Mueller questioned what this program could do for the City of Mounds View. She understood the City was not liable for the performance of the bond. Jenny Boulton, Kennedy & Graven, stated the City would be acting as a gateway to the developer and would give the developer access to tax exempt bonds. The borrower would be responsible for making all payments. Mayor Flaherly questioned what the City's debt service was at this time. Finance Director Beer explained the debt service could not exceed 3% of the City's tax capacity. In addition, the Ciiy could have $30 million in bank debt. Ms. Boulton explained the conduit debt financing would • not qualify as bank debt and, thus would not limit the City's debt service. Council Member Stigney asked who selected Ms. Boulton to represent the City. Finance Director Beer indicated he and the City Administrator selected Kennedy & Graven to represent the City. Council Member Stigney questioned how many assisted living units were within the senior housing development. Joel Larson, representing Select Senior Living of Mounds View, stated there would be 32 independent assisted living units with 95 units in total. Council Member Stigney asked how many people would be within each unit. Mr. Laxson explained each unit could have two people per unit. Council Member Mueller questioned when construction would begin. Mr. Larson indicated he would like to break ground in September and anticipated the building to be ready for occupancy in September of 2011. Council Member Mueller asked how many jobs would be brought into the City through the senior housing project. Mr. Larson estimated that 40 part-time/full-time positions would be needed to run the senior housing development. Mayor Flaherty indicated he received positive feedback from neighboring communities when • discussing conduit debt. He questioned if the City had an administrative fee established for the