Agenda Packets - 2010/10/11 - Laserfiche WebLink

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Mounds View City Council September 13, 2010 Regular Meeting Page 3 require this issue to come back before the Council. The City would be paid 1% of the final 1 amount bonded by the developer. 2 3 Council Member Mueller questioned if the project could be placed on the City’s website or if the 4 information should be referred to the builder. Mr. Larson indicated he would be more than happy 5 to have a link on the website to provide the public with additional information on this 6 development. 7 8 Mayor Flaherty asked if the City had any liability to the bonds issued to the developer. Ms. 9 Dyrseth indicated the Trustee would be responsible for the bonds and not the City. All rights and 10 responsibilities would be turned over from the City to the Trustee. Mr. McLinden explained the 11 bondholders would be the ones taking the risk on this development and not the City. He stated 12 the investors would be marketed both locally and throughout the nation. 13 14 Mayor Flaherty requested further information on the tax-exempt status of the bonds. Mr. 15 McLinden indicated bondholders or investors would not pay federal income tax on the interest 16 earnings from the bonds. This has nothing to do with the property tax, but on the income earned 17 on the bonds. 18 19 Council Member Mueller questioned if the City’s bond rating assisted with this project. Mr. 20 McLinden stated the City was not fiduciarily responsible for these bonds and the City’s bond 21 rating would not be mentioned when the bonds were marketed. He indicated the proposed 22 development was a strong project. 23 24 Council Member Mueller asked the timeline in which the bonds would be marketed. Mr. 25 McLinden indicated the bonds would be marketed over a three week time period both locally and 26 nationwide and would begin sometime the end of September. He anticipated strong interest in 27 these bonds. 28 29 MOTION/SECOND: Gunn/Mueller. To Waive the Reading and Adopt Resolution 7672, 30 Authorizing the Issuance, Sale, and Delivery of Multifamily Housing Revenue Bonds (Select 31 Senior Living of Mounds View Project), Series 2010; Adopting a Housing Program Pursuant to 32 Minnesota Statutes, Chapter 462C; Approving the Form of and Authorizing the Execution and 33 Delivery of the Bonds and Related Documents; Providing for the Security, Rights, and Remedies 34 with Respect to the Bonds; and Granting Approval for Certain Other Actions with Respect 35 Thereto. 36 37 Council Member Stigney commented this senior housing development was priced quite high and 38 hoped the numbers would work given the limited incomes of the elderly. 39 40 Mayor Flaherty questioned when groundbreaking would begin if bonds were approved. Mr. 41 Larson stated ground would be broken in November with an anticipated completion in 12 42 months. 43 44 Ayes – 5 Nays – 0 Motion carried. 45