Discussion:
The city has previously set this public hearing and discussed this project. The city's bond counsel provided a memo that is attached explaining the proposed funding arrangement.
The city will be approving the ability for the issuance of conduit debt for the Shakopee Village Apartments in the approximate aggregate principal amount not to exceed $6,825,000, for the benefit of the Borrower, for the purposes of financing all or a portion of the acquisition, rehabilitation, and equipping of an approximately 62-unit existing multifamily rental housing located at 1428 Fourth Avenue East.
The Shakopee Village Apartments is being preserved for occupancy by seniors of low and moderate income and funding will be used for acquisition, rehabilitation and to provide one or more reserve funds to secure the timely payment of the Bonds, if necessary; and to provide capitalized interest on the Bonds during the rehabilitation of the Project, if necessary; and to pay for the costs of issuing the Bonds.
The head of household of each dwelling unit in the Project must be at least 62 years old or disabled.
Housing for those older than 62 for low and moderate income is important for the community's lifecycle housing. These bonds will ensure that this property remains affordable in the long term.
The city has no financial liability for these bonds.
The city will receive a fee as part of the bond offering.