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MOU--N-DS VIEW City of Mounds View Staff Report Item No: 8.E. Meeting Date: November 24, 2025 Type of Business: Council Business Administrator Review: To: Honorable Mayor and City Council From: Gayle Bauman, Finance Director Item Title/Subject: Resolution 10175 Relating to the Issuance of Conduit Revenue Bonds to Finance the Costs of a Multifamily Housing Development Under Minnesota Statutes, Chapter 462C; Granting Preliminary Approval Thereto; Establishing Compliance with Certain Reimbursement Regulations Under the Internal Revenue Code of 1986, as Amended; and Taking Certain Other Actions with Respect Thereto (Silver Lake Pointe Project) Introduction: The City Council is asked to consider a proposal to use conduit debt financing to (i) finance the acquisition, rehabilitation, and equipping of an approximately 83-unit senior rental housing facility known as Silver Lake Pointe and located at 2701 County Road I, Mounds View, MN 55112 (the "Project"); (ii) fund one or more reserve funds to secure the timely payment of the Bonds, if necessary; and (iii) pay certain costs of issuing the Bonds, if necessary. The preliminary revenue bond amount is $7,000,000 and the City will receive a 1% issuance fee for the use of the City's lending authority. The bonds or other obligations if and when issued will not constitute a charge, lien or encumbrance upon any property of the City, and will be payable solely from revenues of the project, and will not be backed by the full faith and credit of the City but will be payable solely from sums paid by the Borrower pursuant to a revenue agreement. Discussion: There are a number of steps that will need to happen before the revenue bonds can be issued. The first step for the City Council is to grant preliminary approval for the project to receive an allocation of bonding authority from Minnesota Management and Budget (MMB). This step will be the challenge as there is a limited allocation available. Final approval would occur at a future Council Meeting at a Public Hearing. The City Council is not obligated to issue the revenue bonds by this resolution, this is just one of the steps necessary to move toward that objective. If at any time during the review process the City Council determines that this is not in the City's best interest, we can withdraw support for the bond issuance. The City is represented by Jenny Bolton as bond council from Kutak Rock. Recommendation: Staff recommends that Council review the information, ask questions and if comfortable approve Resolution 10175. Respectfully submitted, Gayle Bauman Finance Director