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<br />New Brighton LHA II & III, LLLP has requested that the City finance the Project with the issuance of tax- <br />exempt conduit revenue bonds (the “Tax-Exempt Bonds”), in one or more series, in a principal <br />amount not to exceed $47,000,000. <br /> <br />Conduit debt is unlike most other City debt. Bonds of this type are not an obligation of the City or its <br />taxpayers, rather an obligation of the developer. Once issued, the city has little involvement in <br />administration of the bonds. The debt will not constitute a debt of the City and the City will not be <br />pledging its full faith and credit towards any future repayment. The debt is considered a revenue note <br />and only project revenues of the developer, typically rent collected after project completion would be <br />pledged for repayment of the Tax-Exempt Bonds. <br /> <br />Though it is not common, the City has previously issued Tax-Exempt Bonds for other various <br />developments, the most recent being in 2002 to refund conduit debt issued in 1993, and 1988 to <br />Golden Pond. The 1988 bonds were originally issued to finance the acquisition, construction, and <br />equipping the multi-family rental housing project. Other conduit debt financed developments within <br />the City include Brightondale, Donatelle, and Polynesian Village. <br /> <br />Before the City may issue Tax-Exempt Bonds on behalf of New Brighton LHA II & III, LLLP, the City must <br />first adopt a preliminary resolution approving the issuance of Tax-Exempt Bonds specific to the <br />Property, and submit a Housing Program to the Metropolitan Council for consideration. Once the <br />Metropolitan Council approves the housing program, the City will need to prepare and submit an <br />application requesting allocation of multi-family housing bonds to the Minnesota Department of <br />Management and Budget (the “State”). New Brighton LHA II & III, LLLP are requesting an allocation <br />from existing, unused bonds at this time. Typically, allocations of multi-family housing bonds are <br />released January and August of each year so if they are not successful in obtaining these bonds, they <br />would likely put in an application for the January round. <br /> <br /> <br /> <br />________________________ <br />Brenda Davitt <br />Finance Director <br /> <br /> <br />Attachments: Resolution Old Highway 8 Senior Housing Development <br /> Resolution Old Highway 8 Family Housing Development