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City Council Regular
Consider Resolution 19-59, Common Bond Communities Housing Revenue Bonds
Grant Fernelius, Community Development Director
The City Council is asked to conduct a public hearing and adopt the attached resolution related to the sale and issuance of conduit housing revenue bonds for the Galway Place Townhomes in Coon Rapids and Community Plaza in St. Paul.
On June 5, 2018, the City Council adopted Resolution 18-71 which granted preliminary approval of conduit housing revenue bond financing for the Galway Place Townhomes in Coon Rapids along with a property in St. Paul called Community Plaza.
Common Bond Communities, a Minnesota non-profit, purchased the Galway Place Townhomes in 2017. The townhomes consist of 36 units of Section 8 housing located at 11184 Hanson Boulevard NW. The property was built in 1981 and is comprised of six townhome buildings, three garage buildings, a basketball court and two playgrounds. The property maintains a waitlist for each unit type.
The other property that Common Bond Communities is financing is in St. Paul, Minnesota. A joint powers agreement with the City of St. Paul will also be required to authorize the issuance of bonds for the St. Paul property.
Common Bond Communities, is requesting that the City authorize the issuance of housing revenue bonds for both of the projects in an amount not to exceed $11,000,000 to acquire, renovate and equip the properties. The renovation will include site work, building exteriors and interior renovations. Common Bond Communities is asking the City to conduct a public hearing and adopt the attached resolution approving the housing program and authorizing the issuance of conduit revenue bonds for the combined projects. The City has no responsibility for repayment of the bonds. The attached resolution reflects the desire by Common Bond Communities to "park" the bonds. This procedure allows the developer to seek interim financing with a Series 2019A and 2019B bonds (to be purchased by different institutions). This fall the developer intends to refinance the debt with new bonds that would replace this first debt issue.
Staff recommends the City Council take the following actions:
Conduct a public hearing.
Adopt the attached Resolution 19-59 authorizing the issuance, sale and delivery of its conduit multifamily housing revenue obligations relating to the Galway Place /Community Plaza projects; adopting a housing program pursuant to Minnesota Statutes, Chapter 462C; approving the forms and authorizing the execution and delivery of the obligations and related documents.
Resolution 19-59 (Galway Place/Community Plaza)
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