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<br /> <br />REQUEST FOR COUNCIL CONSIDERATION <br /> <br />ITEM DESCRIPTION: CONSIDER TWO RESOLUTIONS PROVIDING FOR A PUBLIC HEARING REGARDING THE SENIOR AND <br />FAMILY MULTIFAMILY HOUSING DEVELOPMENTS AND GRANTING PRELIMINARY APPROVAL TO THE ISSUANCE OF CONDUIT <br />REVENUE BONDS TO FINANCE THE COSTS <br />DEPARTMENT HEAD’S APPROVAL: Brenda Davitt <br />CITY MANAGER’S APPROVAL: Dean Lotter <br />No comments to supplement this report ___ Comments attached ___ <br /> <br />Recommendation: Approve and adopt two resolutions providing for a Public Hearing Regarding the <br />Senior and Family Multifamily Housing Developments and Granting Preliminary Approval to the <br />Issuance of Conduit Revenue Bonds to Finance the Costs . <br /> <br />Legislative History: In accordance with the provisions of Minnesota State Statues, the City is <br />authorized to develop and administer a housing program to provide for the financing of new <br />construction or the acquisition and rehabilitation of an existing building and site for providing a multi- <br />family housing development. Furthermore, State Statutes also provides that such programs for multi- <br />family housing developments may be financed by revenue bonds or obligations issued by the City. <br /> <br />Financial Impact: Per the City’s Conduit Debt Financing Policy, the City collected a nonrefundable <br />$2,500 processing fee. In addition, all costs associated with the issuance of the bonds (legal and fiscal <br />consultants) will be reimbursed to the City. The policy also states that an administrative fee of .25% <br />of the principal of the bonds will be collected upon issuance along with an annual maintenance fee of <br />.10% of the outstanding principal until the bonds have been defeased. <br /> <br />It has been recommended by Ehlers, our Financial Advisors, to collect both the administrative fee and <br />maintenance fees upon issuance, thus reducing the risk of the bonds being refinanced by another <br />local municipality and losing future revenue. The amount collected will represent the present value of <br />the policy calculation out to the final term of the bond or 1% of the principal at the time of issuance. <br />If the full bond amount requested were issued, the minimum collected would be $470,000 to be <br />deposited in the Municipal Development Fund to help finance future projects. <br /> <br />Explanation: The City received financial applications to issue tax-exempt bonds on behalf of New <br />Brighton Leased Housing Associates (LHA) II, LLLP and New Brighton Leased Housing Associates (LHA) <br />III, LLLP (Dominium) in connection with the proposed acquisition and construction of two multi-family <br />housing developments (New Brighton Elementary Senior and Multi-Family Project) located in New <br />Brighton. <br />Agenda Section: Consent <br />Report Date: October 3, 2018 <br />Council Meeting Date: October 9, 2018