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C. �� DORSE %, 17 <br /> DORSEY & WHITNEY LLP <br /> MEMORANDUM <br /> TO: Acting Mayor and Members of the City Council <br /> Michael Mornson, City Manager <br /> FROM: Jerome P. Gilligan <br /> DATE: September 8, 2004 <br /> RE: Proposed Multifamily Rental Housing Revenue Bonds <br /> The City has received a request from St. Anthony Leased Housing Associates I <br /> Limited Partnership (the "Borrower") that the City issue revenue bonds under Minnesota <br /> Statutes, Chapter 462C, the proceeds of which will be loaned by the City to Borrower and used <br /> to finance the rental housing development containing approximately 261 rental units to be <br /> constructed as part of the Silver Lake development. The Borrower is a single purpose entity <br /> limited partnership formed by Dominium Development in connection with the proposed <br /> development. The City Council will hold a public hearing on the issuance of the revenue bonds <br /> at its September 14th meeting. <br /> The bonds are proposed to be issued in up to four series in the aggregate <br /> principal amount of up to $39,500,000. Two of the series of bonds will be secured by a credit <br /> and liquidity support to be provided by a letter of credit or other credit facility to be issued°by <br /> LaSalle Bank, one of the series of bonds will be secured by a credit and liquidity support to be <br /> provided by a letter of credit or other credit facility to be issued by Bremer Bank, and the <br /> remaining series of bonds, if issued, will be sold to qualified investors. The debt service on the <br /> bonds will be payable solely from payments to be made by the Borrower. The City will not have <br /> any liability with respect to the bonds. The Borrower will pay all City expenses with respect to <br /> the bonds, and upon issuance of the bonds will pay the City a fee equal to 1% of the principal <br /> amount of the bonds in accordance with the City's recently adopted guidelines for issuance of <br /> revenue bonds. <br /> Representatives of the Borrower will attend the September 14th City Council <br /> meeting to respond to any questions concerning the proposed bonds. To proceed with the <br /> proposed bond issue following the public hearing, the Council should adopt the resolution <br /> approving the issuance of the bonds and approving the housing program for the proposed <br /> development and its financing prepared in accordance with Minnesota Statutes, Chapter 462C. <br /> DORSEY&WHITNEY LLP <br />