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Item No: 8.D. mou--T-�Ms VWW Meeting Date: November 2u 2024 Type of Business: Council Business Administrator Review: City of Mounds View Staff Report To: Honorable Mayor and City Council From: Gayle Bauman, Finance Director Item Title/Subject: Resolution 10009 Authorizing the Issuance, Sale, and Delivery of its Conduit Multifamily Housing Revenue Bonds for the Sibley Park/Sibley Court Project; Adopting a Housing Program; Authorizing the Execution and Delivery of the Bonds and Related Documents; Providing for the Security, Rights, and Remedies with Respect to the Bonds; and Granting Approval for Certain Other Actions with Respect Thereto Introduction: The City Council granted preliminary approval in resolution 9933 to use conduit debt financing to finance the acquisition, renovation, construction and equipping of an existing approximately 114-unit rental housing facility and related amenities known as Sibley Park and located at 211 71h Street East in Saint Paul, Minnesota; to finance the acquisition, renovation, construction and equipping of an existing approximately 122-unit rental housing facility and related amenities known as Sibley Court and located at 484 North Temperance Street in Saint Paul, Minnesota; to fund one or more reserve funds to secure the timely payment of the Bonds, if necessary; to pay interest on the Bonds during the construction of the Project, if necessary; and to pay certain costs of issuing the Bonds. The preliminary revenue bond amount is $45,000,000 and the City received state allocation to issue $45,000,000. The City will receive a 1% issuance fee for the use of the City's lending authority. The revenue bonds will not constitute a general or moral obligation of the City and will not be secured by or payable from any property or assets of the City and will not be secured by any taxing power of the City. Discussion: This step will commit the City to issuing conduit debt in the listed amount and constitutes final approval. The sale of bonds is scheduled to occur in December. The City is allowed to issue conduit bonds under IRS regulations due to our nexus to the project. (trade area) The project is responsible for all costs of issuance and the City has no obligation for the debt issued. The City is represented by Jenny Bolton as bond council from Kennedy & Graven. Recommendation: Staff recommends that Council review the information, ask questions and, if comfortable, approve Resolution 10009.