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as amended (the "Code") which relates to a deduction available to banks and other financial <br />institutions (sometimes referred to as "bank -qualified bonds"). Because this type of Bond is <br />not eligible for designation as bank -qualified bonds, the Bonds will not count against Mounds <br />View's $10,000,000 limit in 2021 on its ability to designate its own bonds, if any, as bank <br />qualified bonds and issuing the Bonds in 2021 will have no impact on Mounds View's ability to <br />issue bank -qualified bonds in future years. <br />Because of the for -profit ownership of the Project Facilities, the Bonds will need an allocation <br />of bonding authority from the State. The amount of tax-exempt bonds for this purpose is limited <br />by federal tax-exempt bond law and that limit has not been sufficient for the amount of projects <br />seeking tax exempt bonds in Minnesota. Kennedy and Graven, as bond counsel, will prepare <br />all of the application documents. <br />In order to proceed, Mounds View would need to give preliminary approval in June. This would <br />not initially require a public hearing, instead the hearing would be held in 2021 after the <br />allocation of bonding authority has been received. Before issuing the Bonds, Mounds View <br />will need to hold a public hearing, adopt a resolution authorizing the issuance of the Bonds, <br />and execute various related documents, including the Bonds and the Loan Agreement. <br />Kennedy and Graven, as bond counsel, will provide forms of resolutions and all the necessary <br />documents. <br />The Borrower will be required to pay all the expenses of Mounds View paid or incurred with <br />respect to the Bonds and will be required to indemnify Mounds View for any potential liability <br />incurred by Mounds View with respect to the Bonds, the Project Facilities, and granting <br />necessary approvals. <br />Discussion: MWF Properties has indicated that the conduit bond is necessary for the project <br />to continue. A representative from Kennedy & Graven and MWF Properties will be present to <br />answer any questions the City Council may have. <br />Strategic Plan Strategy/Goal: Maintain a positive business climate where businesses want <br />to locate and remain in mounds view. Finance top redevelopment areas <br />Industrial/Commercial/Residential. <br />Financial Impact: None <br />Recommendation: Staff recommends the City Council consider Resolution 9432 by motion. <br />Respectfully submitted, <br />Brian Beeman, MPA, CMC <br />Assistant City Administrator <br />M U210-289-724362.0 2