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REQUEST FOR COUNCIL ACTION <br /> Date:May18, 2020 <br /> Item No.: 7.f <br />Department Approval City Manager Approval <br /> <br />Item Description: Consider Approval to the Issuance of Multifamily Housing Revenue Noteson <br />Behalf of Roseville Leased Housing Associates I, LLLP(Dominium). <br />1 B ACKGROUND <br />2 Under federal and state statutes, municipalities are authorized to pledge their bond issuance authority to <br />3 non-profit groups for the benefit of multi-family, affordable housing,and assisted-living housing <br />4 facilities, including corporate offices of those groups. The notes are considered conduit (pass-through) <br />5 debt, and do not constitute a legal or financial obligation in any part by the City. The City is merely <br />6 lending its bonding authority on behalf of the non-profit group. However, the City must still meet all <br />7 legal requirements prior to issuing any tax-exempt notes. <br />8 <br />9 Roseville Leased Housing Associates I, LLLP(Dominium) has requested the City to provide tax-exempt <br />10 financing in an amount not to exceed $34,000,000i) to refund and redeem the outstanding principal <br />11 balance of its $4,346,852 Multifamily Housing Revenue Note (Twin Lakes Family Apartments Project), <br />12 Series 2019 (the "Prior Note") which was used to provide short-term financing for the acquisition, <br />13 construction, and equipping of an approximately 228-unit multifamily housing facility and related <br />14 facilities located at 1717 and 1743 County Road C West in the City of Roseville, Minnesota (the "City") <br />15 (the "Project"), and (ii) to finance, in part, the remaining costs of acquiring, constructing, and equipping <br />16 of the Project. <br />17 <br />18 A public hearing was held on November 4, 2019 and the Council approved the housing program and <br />19 authorized the issuance of revenue obligations by the City to finance this project. <br />20 P OLICY O BJECTIVE <br />21 Generally speaking, the public policy rationalefor City participation in these financings is to promote <br />22 greater investment in the City’s multi-family, affordable housing, and assisted-living facilities than would <br />23 otherwise occur by market forces alone. Allowing the bonds to be issued tax-exempt makes them more <br />24 attractive to investors and results in lower borrowing costs compared to traditional financing methods. <br />25 This in turn, provides more available dollars for the proposed project. The City has consistently been <br />26 approving these requests for decades. <br />27 <br />Page 1 of 2 <br /> <br /> <br /> <br /> <br />