4.4. SR 06-28-2010 - Laserfiche WebLink

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N // City of Elk -,.-; River REQUEST FOR ACTION TO ITEM NUMBER Ma or & Ci Council 4.4. AGENDA SECTION MEETING DATE PREPARED BY Administration June 28, 2010 Catherine Mehelich, Director of Economic Develo ment ITEM DESCRIPTION REVIEWED By Dominium Corporation Request fox Housing Revenue Bond for Tim Simon, Finance Director Dove Tree Apartments -1105 Lions Park Drive REVIEWED BY Public Hearing & Resolution Lori ohnson, Ci Administrator ACTION REQUESTED Following a public hearing, staff recommends City Council approval of the following: Resolution No. 10- Relating to A Multifamily Housing Development and the Issuance of Revenue Bonds to Finance the Costs Thereof Under Minnesota Statutes, Chapter 462C, as Amended; Granting Preliminary Approval Thereto; and Taking Certain Other Actions With Respect Thereto (Dove Tree Apartments Project) 2. The Program for Financing a Multifamily Rental Housing Development These recommendations are based on: Approximately $1,122,000 of rehabilitation funds will be dedicated to the project Issuance and other fees to be paid fox by the applicant BACKGROUND/DISCUSSION The Dominium Development and Acquisition, LLC, under the ownership of Elk River Leased Housing Associates III, Limited Partnership (the "Borrower"), is seeking authorization for the City of Elk River to issue tax exempt housing revenue bond in an amount up to $7,000,000 with a maturity not to exceed 40 years. These funds will be used as proceeds for the purchase of the existing 68-unit multifamily rental housing facility known as Dove Tree Apartments located 1105 Lions Park Drive. The City's issuance of these housing revenue bonds will also enable the owner to receive housing tax credits which will be converted to project equity. The bond and credits place a cap on income and rent for the project which is illustrated on page 5 of the attached Dominium application. It should be noted that this apartment complex was originally financed with tax credits, and as such, had similar limitations. The financing extends the affordability requirements for 15-years. Other projects financed with conduit bonding from the City included most recently Dominium's acquisition and rehabilitation of Birchwood Apartments in 2007. As part of the statutory requirements, the City needs to conduct a public hearing and to pass a resolution regarding the same. Approval of this resolution will formally start the underwriting and issuance process of the housing revenue note. C:\Documents and Settings\XPMUser\Local Settings\Temporary Internet Files\OLK66\Action Requested 6 28 l0.doc