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REQUEST FOR COUNCIL ACTION <br />� <br />3 Date: 4/23/2007 <br />4 Item No: 7.c <br />Dc�artment A�al: Manager Approved: Agenda Section: <br />� � .�. � � �� �' <br />8 <br />Staff Reports <br />I��h Description: Consider Setting a Public Hearing for the Purposes of Issuing Tax-Exempt Bonds for <br />11 Centennial Gardens East Apartments <br />� �. <br />�3 <br />1 �4 <br />l� <br />] �5 <br />l� <br />1 #� <br />19 <br />�� <br />�k <br />�� <br />�3 <br />�� <br />�� <br />�� <br />�� <br />..�K <br />�� <br />3� <br />31 <br />3� <br />�� <br />�� <br />35 <br />Background <br />State Statute provides for the issuance of tax-exempt bonds by municipalities for the benefit of <br />housing or long-term care facilities that are deemed to be in the best interest of the City, and in <br />which the bond issuance results in no negative fiscal impact. The bonds are considered conduit <br />debt and do not constitute a financial obligation in any part by the City. However, the City must <br />still meet all legal requirements prior to issuing any tax-exempt bonds, including holding a <br />public hearing. <br />Centennial East Limited Partnership has requested the City to provide tax-exempt financing for <br />the purposes of financing the acquisition, renovation and equipping of the Centennial Gardens <br />East Apartments; a 95-unit multi-family rental housing facility for low and moderate income <br />tenants located at 1420 Centennial Drive. The apartment complex is immediately west of the <br />Hamline Shopping Center. <br />The total amount of financing is approximately $6 million. The City has participated in <br />financing arrangements for similar entities most recently in 2005. <br />Discussion Items <br />The City Council is required to approve any issuance of tax-exempt financing by the City. The <br />City's Bond Counsel of Briggs & Morgan, has reviewed the legal and financing agreements, and <br />will provide an unqualified opinion as the legality of the bonds and their tax-exempt status. <br />--3� There is no fiscal impact on the part of the City. All costs of debt issuance will be paid by the <br />�� applicant. In addition, the City does not intend to issue any direct debt in 2007. As a result, this <br />3� issuance will not j eopardize the "bank-qualification" Status of any new City debt issues. <br />�� <br />� Attachment <br />�] Enclosed is a Resolution and Notice granting preliminary approval and setting the public <br />� �. hearing. <br />�� <br />l <br />