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City Council Regular
Consider Resolution 19-58, Real Estate Equities Housing Revenue Bonds
Matt Brown, Economic Development Coordinator
The Council is asked to hold a public hearing and consider a resolution regarding the issuance of conduit revenue bonds for an apartment project near 94th Avenue and Springbrook Drive.
At its June 4 meeting, the Council will consider site plan and plat applications for a 168-unit workforce apartment project near 94th Avenue and Springbrook Drive. All units in the proposed building would be affordable to households earning 60% of area median income. Earlier this year, the Council approved a term sheet and tax-increment financing plan for the project, as well as a resolution granting preliminary approval of conduit revenue bonds. Project financing will include federal tax credits, tax-increment financing, and conduit revenue bonds. Real Estate Equities has requested that the City act as the issuer for tax-exempt bonds, in an amount not to exceed $30,000,000, to fund the project. The bonds, which are not an obligation of the City, will provide construction financing for the project and will be paid down after the project has stabilized and permanent financing is obtained. Consistent with the term sheet that the Council adopted earlier this year, this authorization represents an initial temporary bond issue. The developer will park the bonds and close on permanent financing this fall.
Staff recommends that the Council:
Conduct a public hearing.
Adopt Resolution 19-58 related to the issuance of conduit revenue bonds to Coon Rapids AH I, LLLP for a multi-family rental housing development.
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