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05.02 - HRA West Grove Townhome Refunding
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04-03-2012 Council Meeting
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05.02 - HRA West Grove Townhome Refunding
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� costs in the event of deficiencies from the Special HRA <br />Levy. <br />The West Grove Townhomes are filled to capacity at this <br />time. However, the financing for this project is deficient <br />and it does not appear that this project will be able to cash <br />flow in the future without refunding the bond. There is <br />presently an opportunity for a refunding of this project to <br />take place. The purpose of the refunding is to level out the <br />payments. Paul Steinman from Springsted has included a <br />memorandum explaining the issues of this refunding. <br />The refunding will take place through the Crow Wing <br />County HRA. The County HRA has approved setting the <br />sale date and has approved the terms of the sale. <br />� <br />The City's role in this process is to pass a resolution <br />pledging payment of debt service of the bond and operating <br />costs of the project in the event of a deficiency through the <br />special HRA levy. Payment would be at the maximum rate <br />allowed by State Statute, which at the present time is <br />0.0185% of the City's taxable market value. <br />Steve Bugel — Kennedy and Graven Bond Attorney, has <br />prepared the refunding documents including the Resolution <br />that the City will be requested to adopt. <br />Council Action Requested: Council motion adopting the <br />attached resolution. <br />`., <br />
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