Agenda - Council - 03/13/2012 - Laserfiche WebLink

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CC Regular Session 7. 4. Meeting Date: 03/13/2012 Submitted For: Kurt Ulrich By: Heidi Nelson, Administrative Services Information Title: Authorize Sale of Bonds for The Residence at the COR - Flaherty and Collins Apartment Project Background: On September 27th, 2011 the HRA and City Council approved a Purchase Agreement and Development Agreement with Flaherty and Collins for the construction of a 230-unit market rate apartment project in the COR at Ramsey. The project will wrap the existing and newly expanded parking facility and complete a significant component of the 'transit village' in The COR. The development and purchase agreements included project financing by the HRA in the amount of a $1.3 million note and a $6.85 million dollar note. As the Council will recall, the private financing in this project being provided by PNC Bank for $20.45 million. On February 28, 2012, the HRA approved the Subordination Agreement with PNC Bank with regard to the HRA and PNC financing for the project. The PNC financing included contingencies with regard to the construction of the Ramsey Station on the Northstar Commuter Rail. Those contingencies have now been satisfied with the contracts for the construction of the Ramsey Station being let in late January. Ground breaking for the Ramsey Station is scheduled for March 27, 2012. Additionally, at the September 27, 2011 meetings of the HRA, the public hearing for the sale of the bonds associated with the financing being provided by the HRA was held. During the February 28, 2012 HRA meeting, Stacie Kvilvang of Ehlers, the HRA's financial advisor for this project, discussed two options for the sale of the bonds. Staff has further reviewed the bond structure; the recommendation with regard to the bond issue is detailed in the attached Pre -Sale Memo prepared by Ehlers. Ms. Kvilvang will be present at the City Council meeting this evening to review the action requested by the City Council and to call for the sale of the bonds on April 24th and begin the required process for that sale. As noted at the February 28, 2012 HRA meeting, Flaherty and Collins will proceed to close on their private financing for the project in early March and the closing on the land with the HRA would occur in late March, 2012. The land sale proceeds from this transaction are $750,000. Ground breaking for The Residence at the COR project has been tentatively scheduled for Tuesday, April 10, 2012 at 3:00 p.m. Notification: Public Hearing for the sale of the bonds was completed on September 27, 2011. Observations: Attached documents: Sale of Bond documentts Recommendation: