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ARDEN HILLS CITY COUNCIL – JUNE 8, 2015 5 <br /> <br />financing. She also stated that the City’s Bond Counsel and a representative from Presbyterian <br />Homes were present to answer any questions. <br /> <br />Councilmember Woodburn requested further information on conduit debt financing. <br /> <br />John Utley, bond counsel, provided the Council with further information on conduit debt <br />financing noting that the City would not be responsible for the repayment of these bonds. He <br />reported that the City could issue $10 million each year in conduit debt and could receive a <br />management fee for the issuance of these funds. He noted that conduit debt financing was issued <br />mostly to non-profits at a lower interest rate than can be received elsewhere. <br /> <br />Mayor Grant questioned who would be providing the additional financing for this project. <br /> <br />Mr. Utley explained that Presbyterian Homes would be financing the remaining $2 million in <br />cash. <br /> <br />Mayor Grant opened the public hearing at 7:37 p.m. <br /> <br />With no one coming forward to speak, Mayor Grant closed the public hearing at 7:38 p.m. <br /> <br />MOTION: Councilmember Holden moved and Councilmember McClung seconded a <br />motion to adopt Resolution #2015-034, Approving a housing program relating <br />to a senior rental housing development to be located in the City of Arden <br />Hills; granting preliminary approval to the issuance of revenue obligations by <br />the City to finance the senior rental housing development, and approving and <br />authorizing certain related actions. The motion carried (5-0). <br /> <br />8. NEW BUSINESS <br /> <br />None. <br /> <br />9. UNFINISHED BUSINESS <br /> <br />None. <br /> <br />10. COUNCIL COMMENTS <br /> <br />Councilmember Woodburn discussed a recent article on affordable housing in the St. Paul <br />Pioneer Press. <br /> <br />Councilmember Holmes did not understand why this article claimed Cottage Villas was no <br />longer affordable housing. <br /> <br />Director of Finance and Administrative Services Iverson reported that once the TIF note was <br />paid off for this project, the units are not required to remain affordable housing. <br /> <br />Mayor Grant provided further comment on Cottage Villas and the increased rental rates.