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Item No: 7.H. Meeting Date: December 13, 2010 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 7717 Relating to Issuance of the City’s Multifamily Housing Revenue Bonds (Select Senior Living of Mounds View Project), Series 2010 as Temporary Bonds and Authorizing the Issuance of Multifamily Housing Revenue Refunding Bonds and the Execution of Various Related Documents Introduction: The City Council previously authorized in resolution 7672 issuance of Multifamily Housing Revenue Bonds, Series 2010, for a 95 unit senior housing facility located at County Highway 10 and Groveland Road. The closing on the bond sale is scheduled for Tuesday, December 14, 2010. Discussion: Due to adverse market conditions that may last through the end of the year. The borrower has asked if the City will issue the bonds on a temporary basis to later be refunded once the adverse marketing conditions have abated. The bonds will be purchased by M&I Bank. The developer will make a deposit that will cover the City’s fee, accrued interest on the temporary bonds and the legal fees. The bond proceeds are held in trust until the refunding bonds can be sold. The attached resolution will authorize the temporary issue and refunding of the temporary bonds once marketing conditions improve. The City’s bond council, Jenny Boulton and the Developer Joel Larson are available for any questions the Council may have. The risk to the City does not change by authorizing the temporary bonds and allowing them to be refunded. Recommendation: Staff recommends that the Council ask any questions that they may have to support their consideration of this request. Respectfully submitted, ________________________ Mark Beer Finance Director