Agenda - Council - 02/26/1979 - Laserfiche WebLink

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IX) Muhiflxxts Bttilding 733 Marq.c.c Avenue Mi.nc:~pc, lis. Minnc~.c, la 55402 612/371-6111 Piper, Jaffray a Hopwood £stablish~ 1895 Member New York Stock Exchange, Inc. February 9, 1929 Mr. Tom Camec, Mayor Mr. Lloyd Schne]]e, C~ty Administrator C]ty of Ramsey ]5]53 Northern Blvd. Anoka, Minnesota 55303 Re: Propose'd Mortgage Revenue Bonds Car--Son }{omes, Inc. - Oakridge Construction and Realty, Inc. Ramsey, Hjnnesota Gentlemen: I w~sh to thank you for the opportnnity to visit with you Monday, January 29, and ] am submitting this letter on behalf of Car-Son Homes, Inc. and Oakrjdge Construction and Realty, Inc., to serve as an Application for Mortgage Revenue Bond F~nancing. Also enclosed is a preliminary resolution prepared by our Bond Counsel, Briggs and Mo[gan. I am also enclosing,.for the benefit of your council members, an xllustratxon c'0mparing the housing costs of market rate mortgages to the lower rate m6rtgages which will be made possible by the pro- posed financing. It has been relatively recent that the vehicle of tax-exempt bond financing has evo].ved to be a viable method of generating low interest mortgage capital. To- day's h~gh market 'interest rates and the stringent, equity requirements often imposed by conventional mortgage .lenders threaten to make this current year a d~smal one, to be sure, for residential mortgage financing in 'general, and residential new construction in particular. New construction is emphasized bore.because new homes do not have the financing 'alternat'ives of mortgage loan assumption a~d seller financing (i.e. contract for deed financing) that existing residential housing has.-. In:either case, however, a tremendous need for low rate m'ortgage financing is present for the housing needs of 1979. P~j~. P.urpose Considerations: In the,propOsed residential construct{on, very significant public purpose considem- ations include (1)' the creation of new job opportunities, (2) an improvement to the City's tax base, (3) the presence of new residential construction as a strong advantage in a City's efforts to attract new industry, and (4) the reduction of interest ~ntes to area residents.