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<br /> <br />City of Elk River Item Number <br />REQUEST FOR COUNCIL ACTION 5.2. <br />Agenda Section Meeting Date Prepared by <br />Community Development March 5, 2007 Scott Clark, Community Development <br /> Director <br />Item Description Reviewed by <br />Dominium Corporation Request for Housing Revenue Bond for ~ <br />Birchwood Court Apartments - 227 School Street NW <br /> <br />Introduction <br />An Inducement Resolution was passed by the City Council on Februmy 5, 2007, which allowed <br />the process to begin for Elk River Leased Housing Associates II, ILP (Elk River Housing) to <br />secure a 30-year tax exempt housing revenue bond, in an amount up to $2.5 million dollars from <br />the City. These funds will be used as proceeds for the purchase of the 51-unit Birchwood Court <br />Apartments (formerly Park Point), located at the southwest comer of School Street and Proctor <br />Avenue. The City's issuance of these housing revenue bonds will also enable the new owner to <br />receive housing tax credits, which will be converted to project equity. As part of the statutory <br />requirements, the City needs to conduct a public hearing and to pass a resolution regarding the <br />same. Approval of this resolution will formally start the underwriting and issuance process of the <br />housing revenue note. <br /> <br />Discussion <br />No programmatic changes have occurred from the February 5, 2007 meeting and the amount of <br />rehabilitation, rent restrictions, etc. regarding this program are the same as shown on the attached <br />February 5, 2007 Council action. <br /> <br />Financial Impact <br />It is important to reemphasize that there will be no impact to the City, since this request is for a <br />revenue bond conduit fInancing, with the City not having to pledge any considerations for its debt <br />payment. In addition, Dominium has paid an initial $5,000 application fee. The City will also <br />require a one percent issuance fee and all out-of-pocket expenses for legal fees to underwrite the <br />bond will be paid by the applicant. <br /> <br />Attachments <br /> <br />· HousingDevelopmentBondResolution07-_<to be handed out Monday evening) <br />· Council Action Request Form - February 5, 2007 <br />· Dominium letter dated January 16, 2007 <br />· Inducement Resolution ofthe City of Elk River No. 07-13 <br />· Elk River Conduit Bonding Application Approved Program for Financing a Multifamily <br />Housing Program <br />