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CITY OF ELK RIVER <br /> Conduit Bonding Policy <br /> April 2010 <br /> PURPOSE <br /> Under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, <br /> Sections 469.152 to 469.165 (the "IDR Act"), the City of Elk River has authority to issue <br /> industrial development, and health care facility bonds or notes to attract or promote <br /> economically sound industry, commerce and health care in the City. <br /> Under Minnesota Statutes, Chapter 462C (the "Housing Act"), the City is authorized to issue <br /> housing revenue bonds to finance multi-family residential housing projects for low and moderate <br /> income persons and elderly persons. Projects must be embodied in a Housing Program, as <br /> defined in the Housing Act. <br /> The Council is aware that such financing for certain private activities may be of benefit to the <br /> City and will consider requests for conduit bonding subject to this Policy. <br /> It is the judgment of the Council that conduit bonding is to be used on a selective basis to <br /> encourage certain development that offers benefit to the City as a whole, including significant <br /> employment and housing opportunities. It is the applicant's responsibility to demonstrate the <br /> benefit to the City, both in writing and at the public hearing. The applicant should understand <br /> that although approval may have been granted previously by the City for the issuance of <br /> financing for a similar project or a similar debt structure, the Council is not bound by that earlier <br /> approval. Each application will be judged on the merits of the project as it relates to the public <br /> purposes of the Housing Act or the IDR Act and benefit to the City at the time the request for <br /> financing is being considered. <br /> GUIDELINES <br /> A. Standards <br /> Applications must meet all of the following standards to be eligible for consideration: <br /> 1. The applicant shall divulge that private activity conduit bonding will be requested <br /> at the time of application for rezoning or site plan approval. <br /> 2. The project must meet the objectives of and be otherwise consistent with the <br /> IDR Act or the Housing Act and any other controlling laws. <br /> 3. The projects must be compatible with the Comprehensive Plan and the <br /> development plans and objectives of the City. <br /> 4. A project application requesting a public offering must provide reasonable <br /> assurance of security resulting in at least an A rating. <br />