3.3. SR 04-19-2010 - Laserfiche WebLink

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CITY OF ELK RIVER Conduit Bonding Policy r__~rr 2 M 0 ueieted: a~gu5c Zoo i PURPOSE Under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152 to 469.165 (the "IDR Act"), the City of Elk River has authority to issue industrial development, and health care facility bonds or notes to attract or promote economically sound industry, commerce and health care in the City. Under Minnesota Statutes, Chapter 462C (the "Housing Act"), the City is authorized to issue housing revenue bonds to finance multi-family residential housing projects for low and moderate income persons and elderly persons. Projects must be embodied in a Housing Program, as defined in the Housing Act. The Council is aware that such financing for certain private activities may be of benefit to the City and will consider requests for conduit bonding subject to this Policy. It is the judgment of the Council that conduit bonding is to be used on a selective basis to encourage certain development that offers benefit to the City as a whole, including significant employment and housing opportunities. It is the applicant's responsibility to demonstrate the benefit to the City, both in writing and at the public hearing. The applicant should understand that although approval may have been granted previously by the City for the issuance of financing for a similar project or a similar debt structure, the Council is not bound by that earlier approval. Each application will be judged on the merits of the project as it relates to the public purposes of the Housing Act or the IDR Act and benefit to the City at the time the request for financing is being considered. GUIDELINES A. Standards Applications must meet all of the following standards to be eligible for consideration: 1. The applicant shall divulge that private activity conduit bonding will be requested at the time of application for rezoning or site plan approval. 2. The project must meet the objectives of and be otherwise consistent with the IDR Act or the Housing Act and any other controlling laws. 3. The projects must be compatible with the Comprehensive Plan and the development plans and objectives of the City. 4. A project application requesting a public offering must provide reasonable assurance of security resulting in at least an A rating.