Laserfiche WebLink
24 <br /> MEMORANDUM <br /> TO: Mayor and Members of the City Council <br /> Michael Momson,'City Manager <br /> FROM: Jerome P. Gilligan <br /> DATE: May 6, 2002 <br /> RE: Proposed Refunding Bonds for Autumn Woods Apartments <br /> The City has received a request from Autumn Woods Partners Limited <br /> Partnership (the"Partnership") that the City issue tax-exempt revenue bonds under Minnesota <br /> Statutes, Chapter 462C, to refund the City's Multifamily Development Refunding Revenue <br /> Bonds (Autumn Woods Project), Series 1992 (the "1992 Bonds"). The 1992 Bonds were issued <br /> to refinance prior bonds issued by the City to finance the acquisition and construction of Autumn <br /> Woods Apartments, the senior housing project located at 2600 Kenzie Terrace, that is owned by <br /> the Partnership. <br /> The refunding bonds are proposed to be issued in the principal amount of <br /> $7,775,000, which is the outstanding amount of the 1992 Bonds, and will bear interest at a <br /> variable rate. The Bonds will be secured by credit enhancement provided by Fannie Mae, and <br /> based on such credit enhancement will be rated"Aaa"by Moody's Investors Service. The <br /> Partnership is requesting that the City Council adopt a resolution approving the issuance of the <br /> refunding bonds at its meeting on May 14`h following the public hearing on the issuance of the <br /> refunding bonds. <br /> The debt service on the refunding bonds will be payable solely from payments to <br /> be made by Fannie Mae and the Partnership. The City will not have any liability with respect to <br /> the refunding bonds. The Partnership will pay all City expenses with respect to the refunding <br /> bonds. <br /> Representatives from the Partnership will attend the May 14`h City Council <br /> meeting to respond to any questions concerning the proposed refunding bonds. <br /> DORSEY & WHITNEY LLP <br />