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L� <br />J <br />�:�k1TII174I1I ,'�5�7�II,L1: , <br />5! � � <br />REQUEST FOR COUNCIL ACTION <br />Manager Approved: <br />� � � � � <br />�,�s �fiF� <br />Date: 5/07/2007 <br />Item No: 7.d <br />Agenda Section: <br />�i; �� �� F�t��rti�.; <br />It��a Description: Consider Setting a Public Hearing for the Purposes of Issuing Tax-Exempt Bonds for <br />11 Centennial Gardens West Apartments <br />�� <br />I� Background <br />L� On April 23, 2007, the City Council established a public hearing for May 21, 2007 for the <br />I�� purposes of issuing tax exempt conduit bonds ai� behalf of the ownership group of the Centennial <br />I? Gardens East Apartments. This same ownership group is now seeking to acquire and renovate <br />l� the Centennial Gardens ��,-��i Apa�-tmc�Its as well, and is seelcif�g si�nilar financing assistancc. <br />L L] <br />'„f.l <br />`� I} <br />�� <br />�? <br />�r� <br />�� <br />�[5 <br />�- <br />t� <br />�� <br />3i� <br />3l <br />a3 <br />�, �, <br />a� <br />�� <br />3� <br />a �r <br />;? <br />'� � <br />Secausc a public hearing I�as already been established for this particular ow�zersl�i� group, the <br />applicant, their underwriter, and the City's Bond Counsel are in agreement that the simplest <br />1�eans of acting upon the requests for conduit financing is to sim�ly hold the public hearing on <br />May 21, 2007 and then continue it until the June 11, 2007 Council meeting for action on both <br />applications. A new public hearing notice would need to be published regarding the June 11 "' <br />n�eetizag. Given the nearly identical similarities of the project and in recognition that the same <br />ownership group has filed the applications, it is assumed that the Council will follow the same <br />�roccd�re in considering both applications. <br />In addition to their previous and siinilar request, Centennial East �,in�ited Partnership has <br />requested the City to provide tax-exempt financing for the puiposes of financing the acquisition, <br />renovation and equipping of the Centennial Gardens West Apartments; a 95-unit multi-family <br />rental housing facility for low and moderate ir�con�e tenants located at 2825 North Pascal Street. <br />The apartment camplex is immediately west of the Centennial Gardens East apartments and the <br />�amlizle Shopping Center. <br />The total an�otirilt of financing, for both proj ects, is approximately $12.5 million. The City has <br />participated in 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 />4� <br />4�I There is no fiscal impact on the part of the City. All costs of debt issuance will be paid by the <br />� ti applicant. In addition, the City does not intend to issue any direct debt in 2007. As a result, this <br />�(� issuance will not j eopardize the "ba��1{-qualif catian" Status of any new City debt issues. <br />� <br />