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MoUNDVI EW <br />City of Mounds View Staff Report <br />Item No: 8.H. <br />Meeting Date: November 28, 2022 <br />Type of Business: Council Business <br />Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 9662 Relating to the Issuance of Conduit Revenue Bonds <br />to Finance the Costs of a Multifamily Rental Housing Facility and <br />Under Minnesota Statutes, Chapter 462C, as Amended; Granting <br />Preliminary Approval Thereto; Calling for a Public Hearing; <br />Establishing Compliance with Certain Reimbursement Regulations <br />Under the Internal Revenue Code of 1986, as Amended; and Taking <br />Certain Other Actions with Respect Thereto (Reuter Walton Project) <br />Introduction: <br />The City Council is asked to consider a proposal to use conduit debt financing to finance the acquisition, <br />construction and equipping of a 4-story building with approximately 140 rental housing units, related <br />amenities and underground parking all to be located at 2310 Mounds View Boulevard. The preliminary <br />revenue bond amount is up to $23,000,000 and the City will receive a 1 % issuance fee for the use of the <br />City's lending authority. The revenue bonds will not constitute a general or moral obligation of the City <br />and will not be secured by or payable from any property or assets of the City and will not be secured by <br />any taxing power of the City. <br />Discussion: <br />There are a number of steps that will need to happen before the revenue bonds can be issued. The first <br />steps are for the City Council is to grant preliminary approval for the project to receive approval from the <br />Minnesota Department of Employment and Economic Development (DEED). This later step will be the <br />challenge as there is a limited allocation available. Final approval would occur at a future Council <br />Meeting at a Public Hearing. <br />The City Council is not obligated to issue the revenue bond by this resolution this is just one of the steps <br />necessary to move toward that objective. If at any time during the review process, the City Council <br />determines that this is not in the City's best interest we can withdraw support for the bond issuance. The <br />City is represented by Jenny Bolton as bond council from Kennedy & Graven. <br />Recommendation: <br />Staff recommends that Council review the information, ask questions and if comfortable approve <br />Resolution 9662. <br />Respectfully submitted, <br />Ma ► R, gee - <br />Mark Beer <br />Finance Director <br />