Agenda - Council - 03/26/2019 - Laserfiche WebLink

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CC Regular Session Meeting Date: 03/26/2019 By: Diana Lund, Finance 4. 8. Information Title Adopt Resolution #19-078 Granting Approval to Undertake A Housing or Redevelopment Project of the Anoka County Housing and Redevelopment Authority (HRA) Pursuant to MN Statutes, Section 383E.18, as Amended Purpose/Background: Purpose: Anoka County HRA Issue a Private Activity Bond Issue on behalf of Anoka County Community Action Program (ACCAP) Per memo from Anoka County: The Ramsey City Council is being requested to adopt a Resolution granting approval of the redevelopment project, known as the Sunwood Drive Townhome Project located off of Highway 47 at 5340 through 5444 Sunwood Drive NW in Ramsey. The Project is a workforce housing project that was developed in 2003 and is owned by ACCAP, a registered 501c3 organization within the County. ACCAP has requested that the County HRA issue a Private Activity Bond (Conduit Debt) in an amount not to exceed $1,550,000 to refund the initial loan, which was through the US Bank Community Fund. The Bond or Note is planned to be placed with Northeast Bank. Anoka County will be holding a public hearing in regard to this issuance on April 9, 2019 at the Anoka County HRA Special Meeting following the County Board Meeting. 501c3 organizations cannot legally issue tax exempt bonds, but they may avail themselves of the benefits of conduit tax-exempt financing through state and local government units, such as cities, towns and counties. Before this transaction can move forward, the City of Ramsey must approve the refinancing pursuant to Minnesota Statutes, Section 383E.18 as amended, which states that before a housing or redevelopment project of the Anoka County Housing and Redevelopment Authority (HRA) is undertaken, the project shall be approved by the local governing body with jurisdiction over all or any part of the area in which the proposed project is located. Due to the nature of this bond being a Private Activity or Conduit Debt, there is no current or future tax obligations tot he City or County. The Bond will be paid solely from the revenues generated from the Project. Observations/Alternatives: The City has the option not to approve the refinancing, however, it is generally in the City's interest to do so. The refinancing is a positive outcome for this project and makes the financing more secure by reducing the cost of the current debt. Recommendation: Recommend adoption of Resolution #19-078. The City has no tax obligation in regards to the issuance of this debt. The City's sole purpose of needing to adopt said resolution is in regard to the MN Statute 383.18E that states that the Anoka County HRA requires the city to approve the Project because it is within its city limits. Action: