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Regula� C�ty Cauneil Meeting <br />Monday, Ju�te � �, 20Q7 <br />Page 11 <br />1 Counci�member Roe questzoned the document re�erenced as the <br />2 "Mul�i-famaly Renta� Housing Program of the City o� Rosevz�le, N�N," <br />3 in Section 12 0�' the proposed resolution, and what it represent�d. <br />4 <br />5 Ms. Bo�ton advised that i� was a tvvo-page docu�nen� that ou���ned �his <br />6. project and financing prog�aram, the number a� uni�s, �ange of rents, <br />7 and background and statutory referenees; and that it was speci�c to <br />S this project. <br />� <br />Public Cpmment <br />10 A� Sands, 2612 Aldine <br />11 Mar. Sands ques�ioned the City's process in perfa�ming a financial re- <br />12 view of this type o� p�rojec�, ciiing r�cen� St. Paul Port Authority ac- <br />�3 trvities and lack o� fnancia� feasibility of some of ihe pro�ects they'd <br />14 supported. <br />15 <br />16 <br />17 <br />18 <br />�9 <br />20 <br />21 <br />22 <br />Mr. Miller adv�sed that, since �he finaneing was between the applican� <br />and another ihird party, the City d�dn'� �ypica�ly get invo�ved in de- <br />termining if their pro formas were good or not. �r. M��ler opined ihat <br />this was no� the role, or level o� exper�ise requir�d o� the City, and <br />clarified �ha� this type of bonding was conduit financing, and p�re- <br />sented no �ega1 �ntanglements or financ�al risk �o the Ci�y. <br />23 Ms. Bolton concuz�ed, and advised that the bonds related �o the St. <br />24 Paul Por� Authority was from a dz��erent type of program; and that <br />2� this bond issue had no city backing behind ii, but was the sole abliga- <br />26 iion of the owner to pay �he bonds, and ii they were to defau�t, secu- <br />27 raty was based on the mortgage on the �'acilzty, with �he T�stee hold- <br />28 ing the mor�gage interest in the buildings on behalf of ihe band ho�d- <br />29 ers, with the Tru.s�ee doing the financial analysis and absolutely not <br />30 arecourse �o �he City. <br />3� <br />32 <br />33 <br />34 <br />35 <br />36 <br />Mayor Klausing requested, and Ms. Bo�ton provided a brie�' review <br />and explana�ion of bond purchasers ancl conduit financing. <br />Mayox Klausing closed the Pub�ic Hearing at 7:40 p.m. <br />37 Roe moved, Pust seconded, adoption of Resolution No. 10513 �nti- <br />38 tled, "Resolu�ion Approving a Housing Progra.m, Authorizing ihe Is- <br />39 suance and Sale of $1 Z,500,000 lV�u]ti-�Fami]y Hous�ng Revenue <br />