Agenda - Council - 05/26/2015 - Laserfiche WebLink

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CITY OF RAMSEY CONDUIT DEBT POLICY TERM & CONDITIONS FOR THE ISSUANCE OF CONDUIT DEBT (Tax Code Allows City's to issue Conduit debt, but not be held accountable for repayment of debt) Authority: Under Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152 to 469.1651 (the "Industrial Development Act:), the City of Ramsey has authority to issue industrial, commercial, and health care revenue bonds or notes to attract or promote economically sound industry and commerce to 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 consistent with a Housing Program as these terms are defined in the Housing Act. Purpose: Municipalities may be asked by not -for -profit and other entities to issue pass -through, conduit debt. These projects are not projects of the governmental unit but of a separate corporation. In order to expedite the assistance that the City of Ramsey can offer and to avoid a resource drain on the City of Ramsey requires the following: The corporation wishing assistance must first request that the Financial Director of the City review their proposal and provide the information and deposit the fee detailed below. After the Financial Director reviews the proposal the applicant may then request that the City Attorney review their proposal and grant permission to move forward to the public hearing stage. The applicant must provide to the Financial Director documentation about the entity requesting the assistance, the project, and the proposed financing method. The City also requires that the applicant assume all of the costs incurred by the City in examining the legal and fiscal aspects of the project as well as ongoing monitoring and reporting of outstanding bonds once issued. The applicant must make a deposit equal to one-half of one percent one percent (1%) of the proposed issuance amount with a minimum -deposit of $10,000$500 and a taxyrirnurn deposit of $25,000. These funds will be applied against the costs incurred by the City for staff time, its consultants, and any other expenses caused by the proposal. If the application is denied, the deposit amount in excess of these costs will be refunded to the applicant. If the application is approved, the full deposit will be retained to additionally cover costs of issuance and future monitoring. In the event the City's actual costs exceed the deposit amount, the applicant will be required to reimburse these additional amounts. The corporation should be prepared to demonstrate to the Ramsey City Council how the proposed project will benefit the community. The corporation may request to be placed on the City's agenda by: contacting the City of Ramsey at (763) 427-1410, submitting a letter outlining the request, and appearing before the Ramsey City Council when the request is heard. If permission is granted by the City, the bond attorney for the issue must: