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Staff is recommending this issuance based on the following: <br />The Borrower will infuse a minimum of $1,122,000 into rehabilitation efforts as outlined in the attached <br />Dominium application. This equates to approximately $16,500 per unit of rehabilitation, which is <br />substantial for a complex of this age (built in 1995). <br />Staff has confirmed with the City's Fire Department, which conducts apartment inspections, that the <br />facility and management company are current and in compliance with applicable code requirements. <br />FINANCIAL IMPACT <br />There will be no impact to the City since this request is for a revenue bond (conduit financing) with the <br />City not having to pledge any considerations for its debt payment. In addition, Dominium has paid an <br />initial $5,000 application fee. Consistent with the City's Conduit Bonding Policy, the City will also require <br />one percent of the issuance amount of the bonds be paid at closing to the City's Development Fund, and <br />all out-of-pocket expenses for legal fees to underwrite the bond will be paid by the applicant. <br />ATTACHMENTS <br />^ Dominium Corporation -Elk River Conduit Bonding Application <br />^ Resolution No. 10- <br />^ Program for Financing a Multifamily Rental Housing Development <br />A~tiOn Motion by Second by Vote <br />Follow Up <br />C:\Documents and Settings\XPMUser\Local Settings\Temporary Internet Files\OLK66\Action Requested G 28 10.doc <br />