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M0VN-DitSVVWW <br />City of Mounds View Staff Report <br />Item No: 8.A. <br />Meeting Date: April 10, 2023 <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 9728 Authorizing the Issuance, Sale, and Delivery of its <br />Conduit Multifamily Housing Revenue Bonds for the Sherman Forbes <br />Project; Adopting a Housing Program; Authorizing the Execution and <br />Delivery of the Bonds and Related Documents; Providing for the <br />Security, Rights, and Remedies with Respect to the Bonds; and <br />Granting Approval for Certain Other Actions with Respect Thereto. <br />Introduction: <br />The City Council granted preliminary approval in resolution 9651 to use conduit debt financing to finance <br />the acquisition, renovation, construction and equipping of an existing 104-unit apartment community <br />comprised of six 3-story apartment buildings, related amenities and surface parking all located at 310 7th <br />Street West in Saint Paul, Minnesota. The preliminary revenue bond amount is $18,000,000 and the City <br />received state allocation to issue $15,638,000. 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 />This step will commit the City to issuing conduit debt in the listed amount and constitutes final approval. <br />The sale of bonds is scheduled to occur late June with settlement at that time. The City is allowed to <br />issue conduit bonds under IRS regulation due to our nexus to the project. (trade area) The project is <br />responsible for all costs of issuance and the City has no obligation for the debt issued. The City is <br />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 9728. <br />Respectfully submitted, <br />Mara weer <br />Mark Beer <br />Finance Director <br />