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04-977Council File # ��'- �1.1 Green Sheet # �,��,�`�`-1 RESOLUTION CITY OF SA1NT PAUL, NI�Y�ESOTA �S Presented By Referred To Committee: Date � 4 5 6 7 9 10 11 RESOLUTION RECITING A PROPOSAL FOR A FINANCING PROGRAM FOR A MULTI-FAivIII,Y RENTAL HOUSING DEVELOPMENT, GNINC� PRELINIINARY APPROVAL TO THE PROJECT AND THE PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C, AUfiIIORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY TO ISSUE HOUSING REVENCTE BONDS AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMEN'TS AND MATERIALS IN CONNECTION WITH SAID PRO7ECT AND PROGRAM (IJNNERSITY AND DALE APARTMENTS PROJECT) 12 (a) Minnesota Statutes, Chapter 462C (the "Act) confers upon cities, or housing and 13 redevelopment authorities or port authorities authorized by ordinance to exercise on behalf of a 14 city the powers conferred by the Act, the power to issue revenue bonds to finance a program far 15 the purposes of planning, administering, making or purchasing loans with respect to one or more 16 multi-family housing project developments within the boundaries of the city; 17 (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota 18 (the "F3RA") has been designated, by ordinance, to exercise, on behalf of the City of Saint Paul, 19 Minnesota (the "City") the powers conferred by Minnesota Statutes, Section 462C.01 to 20 462C.081; 21 22 23 24 25 26 (c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has received a proposal from University and Dale Limited Partnership, a Minnesota limited partnership (the "Borrower"), that the HRA undertake a program (the "Housing Program") to finance a Project hereinafter described, through the issuance of housing revenue bonds in the approximate principal amount of $8,000,000 pursuant to Minnesota Statutes, Section 469.178, subd. 4 (the "Bonds"); 27 (d) The Project to be financed by the Bonds is the acquisition; construction and 28 equipping of an approximately 103-unit rental housing facility, located at the southwest corner of 29 University Avenue and Dale Street in the City of Saint Paul (the "Project"); 30 (e) The proposal calls for the FIRA to grant the proceeds realized upon the sale of the 31 Bonds to the Borrower pursuant to a development agreement wherein the Borrower will be 32 obligated to pay all costs and expenses of the HRA and the City incident to the issuance and sale 33 of the Bonds; isa�o�z�t ��` `�.1 1 ( fl The City desires to facilitate the acquisition, construction and equipping of a 2 multifamily housing facilit�j within the City; and the Project will assist the City in achieving 3 these objecrives; 4 (�) A public hearing on the Housing Program and the Proj ect was held on thi s date 5 following duly published notice, at which tvne all persons that desired to speak were heazd; and 6 (h) No public official of the City has either a direct or indirect financial interest in the 7 Project nor will any public official either directly or indirectly benefit financially from the 8 Project. 9 NOW THEREFORE, BE TT RESOLVED by the City Council of the City of Saint 10 Paul, Minnesota, as follows: 11 l. The City hereby gives preliminary approval to the proposal of the 12 Borrower that the City undertake the Proj ect, described above, and the program of financing 13 therefor, pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 14 469.174 to 469.1799 (the "Tas Increment Act"), consisting of the acquisition, construction and 15 equipping of a multifamily rental housing project within the Ciry pursuant to the Bonower's 16 specifications. 17 2. On the basis of information available to the City it appears, and the City 18 hereby finds, that the Project consritutes a multifamily housing development within the meaning 19 of subdivision 5 of 5ection 462C.02 of the Act; that the availability of the financing under the 20 Act and the willingness of the City to fixmish such fmancing wi11 be a substantial inducement to 21 the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to 22 encourage the provision of multifamily rental housing opportunities to residents of the City, and 23 to promote more intensive development and use of land within the City. 24 3. The Project, and the program to finance the Project by the issuance of the 25 Bonds, is hereby given preliminary approval by the City subject to final approval by the I�2A, 26 the Borrower and the purchasers of the Bonds as to ultimate details of the financing of the 27 Project, all subject to the availability of an allocarion of taac exempt bonding authority for the 28 Bonds. 29 4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the 30 City hereby authorizes and directs the Housing and Redevelopment Authority of the City of 31 Saint Paul, Minnesota (the "IIRA") to issue the Bonds to finance the Project and to take all 32 actions necessary or desirable in connection therewith, and no further approval or authorization 33 of the City shall be required; provided that the HRA may, in its discretion, authorize the Board to 34 issue the Bonds and to implement the program approved hereby, and the City hereby consents 35 thereto. 36 5. The Borrower has agreed and it is hereby determined that any and all costs 37 incurred by the City or the FIRA in connecfion with the fmancing of the Proj ect whether or not 38 the Project is carried to completion and whether or not approved by FIItA will be paid by the 39 Borrower. i6s�mz�i oa-�,,,, 1 6. Briggs and Morgan, Professional Association, acting as bond counsel, and 2 such investxnent bankers as may be selected by Bonower, with the consent of the HRA, are 3 authorized to assist in the preparation and review of necessary documents relating to the Project 4 and the financing program therefor, to consult with Yhe City Attomey, Borrower and the 5 purchaser of the Bonds as to the maturities, interest rates and other tem�s and provisions of the 6 Bonds and as to the covenants and other provisions of the necessary documents and submit such 7 documents to the F3RA for final approval. 8 7. Nothing in this Resolution or the documents prepared pursuant hereto 9 shall authorize the expenditure of any municipal funds on the Project other than the revenues 10 derived from the Project oz otherwise granted to the City or the HRA. The Bonds shall not 11 constitute a chazge, lien or encumbrance, legal or equitable, upon any property or funds of the 12 City or the HRA except the revenue and proceeds pledged to the payment thereof, nor shall the 13 City or the HRA be subject to any liability thereon. The holders of the Bonds shall never have 14 the right to compel any exercise of the taxing power of the City or HRA to pay the outstanding 15 principal on the Bonds or the interest thereon, or to enfarce payment thereon against any 16 property of the City or the I-�tA. The Bonds shall recite in substance that the Bonds, including 17 the interest thereon, are payable solely from the revenue and proceeds pledged to the payment 13 hereof. The Bonds shall not constitute a debt of the City or HRA within the meaning of any 19 constitutional or statutory limitation. 20 8. In anticipation of the issuance of the Bonds to finance all or a portion of 21 the Proj ect, and in order that completion of the Project will not be unduly delayed when 22 approved, the Borrower is hereby authorized to make such expenditures and advances toward 23 payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds, 24 as the Borrower considers necessary, including the use of interim, short-term financing, subject 25 to reimbursement from the proceeds of the Bonds if any when delivered but otherwise without 26 liability on the part of the City or the I3RA. i�s�o�z�i ��� °��� Adopted by the City Council of the City of Saint Paul, Minnesota this 6th day of 2 October, 2004. Yeas Nays Absent Benanav ,� Bostrom ,/ Hazris ✓ Helgen :i Lantry ,i Montgomery ✓ Thune .� � �' Adopted by Council: Date �G� h-�' �e, ��0� Adoption Ce: By:� Approved by Council Secretary �� Requ Department f: �� V ' �� Form City Mayor�for tes�o�zoi �1► _ o�,�; Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet DeparlmeMlofficefcouncil: Date initiated: � ' PE�'P�az�o�nS&EconomicDeveiopment � 22SEP-04 � Green Sheet NO: 3022644 Confact Pe'son & Phone: i, � l Deoartrnent Sent To Person Initial/Date Tom Sand7eZ � � 0 'F�anuinE & Economic Develoo I T. Sanchez ` 266"66�� � Assign I 1 � lannio onomicDeveb De a e FD'+rector = i Must Be on Coundl Agenda by (�ate): Number � 2 �C�h• Atromev � �. 4�Z V �, �� Fo� � 3 or' Of'fic Ma odAssiStant I � Routing I ' a I Order 4 � 5 ;Citv Clerk Ciri Clerk 6 an in & Ec000ui D ve T. aucLez Total # of Signature Pages _(Clip A{I Locations for Signature) Action Requested: - Signatures for City Council Resolution (inducement resolution) giving preluninary approval for a proposal For a Financing Program for Mulri-Family Rental Housing Development using tax exempt housing revenue bonds, for HRA Board consideration, for the University Dale AparRnents Project, DisRict 8. Recommendations: Approve (A) or Rejed (R): Personal Service Contrects Must Answer the Following Questions: Planning Commission 1. Has ihis person/firm ever worked under a coMrad forthis department? GIB Cammittee Yes No Civil Service Commission 2. Has this personlfirm ever been a city employee? �_ Craff Yes No 3. Does this person/firm possess a skiN not normally possessed by any .� current city employee? � Yes No I Explain all yes aoswers aa separate sheet and attach to green sheet IniGating Prablem, Issues, OppoRuniTy (Who, What, When, Where, Why): The project will result in 97 new conshuction affordable rental housing units to be conshucted above the new Rondo Outreach Library. Advantages If Approved: A vacant site developed with a miYed use that includes 97 new construction affordable rental housing units above a publicly owned library. � � � �' � � DisativanWqesifApproved: RLCEIVEQ S�� � � ZUO� Nane � SEP 2 3 2004 ���� ������� I pisadvanWges lf Noi Approved: Scate of pro}ect is drastically cut back and delays the construction of the libxary. ToWI Amount of � � CosURevenue Budgeted: Transaction: ��g,000,000 �.(� r Fundinn Source: Activity Number. �� l ��� C.-t�b �� Financial Mformation: ��� L39 yt �f.�f'f� Q�y/n G� �-- (ExPlain) / V`8 l� �� T� Y (�{ � Y ;( t c¢� L�l � f'� 0�- °t CITY COUNCIL OF TT� CITY OF SA1NT PAUL, MINNESOTA REPORT TO Tf � CITY COIINCTI, DATE: October 6, 2004 REGARDING: PUBLIC HEARING - Resolution Reciting a Proposal for a Financing Program for a Mulfi-Family Rental Housing Development, Giving Preliminary Approval to the Project and Program Pursuant to Minnesota Statutes, 462C, Authorizing the Housing and Redevelopment Authority of the City of Saint Paul to Issue Housing Revenue Bonds and Authorizing the Preparafion of Necessary Docuxnents and Materials in Connection with the said Project and Proa am. The Housing and Redevelopment Authority of the City of Saint Pau1(HRA) has received a request from University Da1e Aparhnents Limited Partnership, a Minnesota limited partnership (the " Borrower") comprised of Legacy Management and Development Corporation, Selby Area Community Development Corporation and Aurora St. Anthony Community Development Corporation, requesting the I�RA to issue up to $8,000,000, of Tax Exempt Multifamily Revenue Bonds ("Bonds") for the purpose of constructing the University Dale Apartments, a 97 unit affordable rental housing project ("ProjecP') located in District 8. The purpose of this report is to request the City Council to consider adopting the attached preliminary (inducement) resolution which would approve the following: Authorize City staff to prepare a Housing Program for financing the Project prepared in accordance with the provisions of Minnesota Statutes, section 462C.03; and 2. Authorize the Executive Director of the I�RA to enter into a Memorandum of Understanding (MOU) with University Da1e Aparixnents Limited Partnership and to work towards possible issuance of the Bonds. The MOU also stipulates the terms and conditions for issuance of the Bonds should the HRA decide to issue the Bonds; and Authorize HRA to issue up to $8,000,000 of taY exempt, multifamily rental revenue bonds for the Project; and 4. Retain Briggs & Morgan as bond counsel for said Bonds and authorize them to assist in the preparation and review of necessary documents relating to the Project and Housing Program and consult with the HRA, City Attorney, Owner, and purchasers of the proposed Bonds. A�proval of the inducement resolufion and execution of the Memorandum of Understandin¢ does_ not require or obligate the City or I1RA to issue bonds or cause any action against the City or HRA arisin� from any failure or refusal by the Citv or HRA to apnrove the �roject or issuance of the Bonds. 1 0'�. `�`�`� With respect to multifamily housing bonds, Section 72.04 of Chapter 72 of the City's Administrative Code provides that the HRA be designated to exercise on behalf of the City the powers confened by Minnesota Statutes 462C (housing programs and revenue bonds) but only unless duected and authorized to do so by resolution adopted by the City Council. Thus the reason, this proposai is initiated before the City Council rather than the HRA. PROJECT The Project consists of a four story apartment buiiding containing 97 affardable rental housing units built above the publicly owned Rondo Community Outreach Library. Amenities include: structured pazking, elevator, laundry facility and common gathering space. The Project will comply with the City's rental affordability requirement of 10% of the units affordable at 30% of inedian income and 10% of the units affordable at 50% of inedian income. FINANCING The Project will be funded by a combination of multifamily taY exempt bonds, federal Low Income Housing Tax Credit Program (4%), Minnesota Housing Finance Agency, Family Housing Fund and Metropolitan Council. The tax credits are not from the City's annual allocation but are 4% credits eligible for use with taat exempt bonds (the m�imusn rents must be affordable at no more than 60 percent of area median income.) The Department of Housing and Urban Development is processing an application for HUD insurance to enhance the bonds. The HRA will be asked to provide gap financing of approximately $3,091,651 from the sale of taa�able bonds for the Scattered Site Tax Tncrement Financing District No1A and $900,000 of Community Development Block Grant funds. The HRA's gap financing may be lessened if additional funds are approved in October by the Minnesota Housing Finance Agency. The Total Development Cost is $14,281,65'7. Summary of Preliminary Sources and Uses for the Rental Housing and Library projects. Housing: 97 units Conduit Revenue Bonds Series A Series B LIHTC (4°to) TIF loan CDBG NIHFA FHF Met Council STAR TOTAL Sources 5,595,000 2,000,000 1,830,000* Uses Land Construction Soft 3,091,657** T� Credit Fees 900,000 Developer Fee 300,000 Financing Costs 300,000 Contingency 200,000 65.000 14,281,657 452,400 10,061,087 1,230,803 230,Q00 900,000 1,032,367 375,000 14,281,657 M The LIHTC is estimated at $3,830,000 of which $2,000,000 will be used to pay-off the Series B bond. '�* $791,657 application to MHFA for additional funds and would reduce I�ZA contribution. U�k-a�� TIF Loan This loan will come from the TIF Scattered Site bond proceeds. (The balance of the term of the Scattered Site distrlct is 12 years. The annual payments of the district will amortize approximately $6.5 million in bonds through the term.) The term of the'TiF Loan will be the same as the first mortgage term. The project will be chazged a 1°lo simpie annual interest rate. Because the project cashflow cannot amortize the TIF Loan, payments will come from the Scattered Site TTF District attributed to the amount payable by the Housing Project during the 12 yeaz term. After the 12 yeaz term the remaining balance will be deferred to the term of the first mortgage, sale, refinance or foreclosure. CDBG Loan The HRA cannot loan CDBG funds directly to a private developer for new construction but may grant funds to a neighborhood nonprofit for their participation in the project. It is proposed that the I�ZA grant $900,000 in CDBG fixnds to the Selby Area Community Development Corporation after which they would loan the CDBG funds to the project. The Selby Azea CDC loan to the project would be for a term of 40 years, at I% simple interest and subordinate to the bonds/first mortgage. The loan would be secured by a note, mortgage, assignment of leases and rents and a UCC. The grant agreement between Selby Area CDC and the HRA would require the assignment of the loan and collateral documents to the HRA after the project has been occupied for one year. Selby Area CDC would be responsible for al1 elements of the CDBG requirements, conshuction monitoring and any resolution of neighbarhood concerns during construction and rent-up. FEES The non-refundable application fee of $5,000 was paid previously. Should the Bonds be issued, the FIRA will receive an administrative fee at closing equal to Q.5% of the principal balance of the Bonds. On the first anniversary date of the Bonds the IIRA will receive an additiona10.5% fee. Every year thereafter that the Bonds remain outstanding the FIIZA will receive an annual administrative fee equal to 0.01% of the outstanding principal balance of the Bonds. BUSINESS PROFILE Legacy Management & Development Corporation was founded in 1970 to develop quality housing for specific segments of the community, i.e., seniors, families and handicapped individuals. Currently, they have developed or manage more than 1,500 housing units in Minnesota. Housing units consist of subsidized, tas credit and market rate, ranging from scattered site, to small and lazge aparhnent and townhome communities. Legacy Management & Development Corporation is completing the Selby Grotto project in partnership with the Selby Area CDC. Both the Selby Area CDC and the Aurara St. Anthony CDC have extensive experience in providing home improvement and stabilization activities to area residents. SUPPORT The project received support from the District 8 Planning Council. Sanche7T�U�ivers�ty Dale Housing Pro�ect C�ty Councd Rpt10-6-04 0�-�,�� PUBLIC PURPOSE The following public purposes will be met: 1. Project will provide afFordable housing opporiunities for persons at 60%, 50% and 30% of median incomes. 2. Project meets objectives of The Housing Plan, adopted as part of the City's Comprehensive Plan, Section 6.0, Strategy 3: Ensure Availability of Affordable Housing. BOND AUTHORITY; ALLOCATION PROCESS For the past several years, the entitlement has been used for housing projects and mortgage revenue bonds or mortgage credit certificates to finance the City's single family mortgage program. Because the University Dale Apartments will be owned by a for-profit entity, the proposed bonds will count as part of the City's entitlement bond canyover allocation from Year 2003 and part from the entitlement allocation from Year 2004. However, staff believes that the single family mortgage program is amply funded for 2604. Therefore, issuance of rental revenue bonds would not diminish the City's single family mortgage program. Upon adoption of the inducement resolution staff will proceed to prepare a housing program to finance the proposed project. Furthermore, staff will present to the fII2A a report detailing the financing of the Project and request the HRA to consider adoption of a resolution to issue and sell revenue bonds to finance the project. Attachments: City Council Resolution Prepared by: Tom Sanchez PED Project Manager 266-6617 SanchzzT\Un�vers�ty Dale Housing Pro�ecEC�Ty Connml Rpt10-6-04 4 Uy-9�� MULTI-FAMII,Y" RENTAL HOUSING PROGRAM OF TF� CTTY OF SAINT PAUL, MQ�NESOTA, AND THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CTTY OF SAINT PAUL, MINNESOTA (University and Dale Housing Development) October 6, 2004 Provosal; Authoritv. The Housing and Redevelopment Authority of the City of Saint Paul, Miimesota (the "HRA"), proposes to issue revenue bonds and to take other acfions in furtherance of the objective of financing the acquisition, construction, and equipping of the multi-family rental housing project described heiein (this "Progam") pursuant to applicable authority conferred upon the HRA by the laws of the State of Minnesota, including without 1'unitation Minnesota Statutes, Chapter 462C, as the same may be amended from tvne to time (collectively, the "AcY'). Purposes. In creating this Program, the City of Saint Paul, Minnesota (the °City"), and FIIZA aze acting in fiutherance of their findings that the preservation of the quality of life in the City is in part dependent upon the maintenance and provision of adequate, decent, safe, sanitary, and affordable housing stock; that accomplishing the goals of this Program is a public purpose and will benefit the residents of the City; that the need exists within the City to provide in a timely fashion additional affordable rental housing to and for the benefit of persons residing and eapected to reside within the City�, that there exist or are expected to exist persons within the City who are and will be able to benefit from and are in need of the Program; that the Program is necessary in view of the limited resources that may be available to such persons relative to the expenses involved in accomplishing the type of objectives outlined in this Program in the absence of one or more of the forms of assistance described herein or otherwise available pursuaut to the Act; and that the City and HRA hereby find that such forms of assistance are often necessary far the benefit of such persons, families, and goals and that, fiuthermore, the successful unplzmentation of the objectives of the kind described in this Program has been found to provide impetus for the development of other housing in the City, as well as the general development of the City, by ofher persons who aze not the beneficiaries of such govemmentally sponsored or assisted acfivities. Rental HousinQ Purposes. More particularly, the City and HRA find that there exists a need for mulrifamily rental housing, alone due to a variety of factors, including that the cost of new conshuction of multi-family rental units may in many cases prove economically unfeasible, given the high costs of construction and prevailing area rental levels, and that therefare appropriate levels of public assistance may be helpful and necessary in bridging that gap. General Description of the Prog�am. This Program consists of finaucing a portion of the costs of the acquisifion, construction, and equipping of a mulfifamily rentai housing project consisting of approximately 103 units of rental housing. The initial owner of the Project will be University and Dale Aparhnents Limited Parinership, a Minnesota limited partnership (the "Company 1685657v1 py_q�� The Project shall be designed to be affordabie by persons and families with adjusted gross income not in excess of the limits set forth in secfion 462C.03, subdivision 2, and by other persons and families to the extent determined to be necessary in furtherance of the policy of economic integrafion stated in section 462A.02, subdivision 6, with at least 20 percent of the dwelling units held for occupancy by families or individuals with adjusted gross income not in excess of 80 percent of the median family income as estimated by the United States department of housing and urban development for the standard metropolitan sta#istical azea. Under federal law, at least 20 percent of the units must be occupied by persons or families whose family incomes do not exceed 50 percent of azea median gross income or 40 percent of the units must be occupied by persons or families whose family incomes do not exceed 60 percent of azea median gross income. The expected base monthly rents will be approximately as follows: Shl(�l0 C� .' 1 One Bedroom $367 - $855 Two Bedroom $420 - $1,130 Three Bedroom $464 - $1,275 Location. This Program is limited to the Project. The Project is located in the southwest corner of University and Dale in Saint Paul, Minnesota. Revenue Bonds. The amount of revenue bonds to be issued by the HRA required to finance this Program is approximately $8,000,000. The proceeds will finance a portion of the costs of the acquisition, construction, and equipping of the Project and pay costs of issuing the bonds, and may be used to establish a reserve. The Project will be operated as a multifamily rental housing development within the meaning of Minnesota Statutes, Secrion 462C.02, Subd. 5. The Bonds may be shuctured so as to take advantage of whatever means are auailable or necessary and are permitted by law to znhance the security fox and marketability of the Bonds. Substantially all of the net proceeds of the Bonds (the initial principal amount thereof, less any amounts deposited in a reasonably required reserve or paid out as costs of issuance of the Bonds) will be used to pay the costs of the Project, including any functionally related and subordinate facilities. The HRA has adequate existing capacity to admiiuster, monitor and supervise the Project in order to insure that the Project will be consistent with the HRA's Housing Plan. The Company will construct the Project in compliance with all applicable development restrictions, and all new construction and rehabilitarion of the existing buildings is subject to applicable state and local building codes. The Company will be required to operate the Project in accordance with state and local anti-disciimination laws and ardinances. The costs of the Project and the Program undertaken to finance the Project, including specificaliy the costs to the HRA, wiil be paid or reimbursed by the Company. 1685657vt 2 Oy��� Housine Plan. The City and HRA hereby adopt the Comprehensive Housing Pian of the City of Saint Paul as the housing plan relating to the Project. Monitorine. The Program will be monitored by the HRA. The HRA expects to enter into or continue suitable agreements with necessary parties to ensure consistent compliance with the objectives of this Program, as well as with the requirements of applicabie law. Meetin¢ Needs: Methods. The Program will meet the need for rental housing. The City and HRA believe that this Program will help meet the identified needs under this Prograui. The specific methods anticipated to be used include the issuance of revenue bonds under the Act to provide feasible financing for various aspects of the Program so undertaken. The HRA will monitor the implementarion of this Program pursuant to its loan agreement for the Proj ect. Authorization. The Program is undertaken pursuant to Minnesota Statutes, Chapter 462C and is consistent with the HRA's Program. 1685657v1 0�-q�1 NOTICE OF PUBLIC HEARING ON A HOUSING PROGRAM FOR A MULTIFAMILY HOUSING PROJECT Norice is hereby given that the City Council of the City of Saint Paul, Minnesota (the "City"), will meet at the Council Chambers on the Third Floor of the City Hall, 15 West Kellogg Boulevazd, at 5:30 p.m. on Wednesday, October 6, 2004 to consider the proposal of University and Da1e Apartments Limited Partnership, a Mnuiesota limited parknership (the "Borrower") that the Housing and Redevelopment Authority of the City of Saint Paul, Minuesota (the "Authority"), finance a project hereinafter described, pursuant to Minnesota Statutes, Chapter 462C, by the issuance of revenue obligarions of the Authority, and the adoption of a housing program for such bonds. Description of Housing Program and Project The Project consists of the acquisition, construction and equipping of a rental housing facility. The Project will contain approximately 103 rentai units and will be located at the southwest corner of University Avenue and Da1e Street in the City of Saint Paul. The Project will be owned by the Borrower. The maatimum aggregate estimated principal amount of bonds or other obligations to be issued to finance this project is $8,000,000. The bonds or other obligations if and when issued will not constitute a charge, lien or encumbrance upon any property of the Authority or the City, and will be payable solely from revenues of the proj ect, and will not be backed by the full faith and credit of the Authority or the City. At the tnne and ptace fixed for the Public Hearing, the City Council will give all persons who appeaz at the hearing an opportunity to express their views with respect to the proposal. In addition, interested persons may file written comments respecting the proposal with the Deparfinent of Planniug and Economic Development, to the attention of Tom Sanchez at (651) 266-6617, at or prior to said public hearing. 1685659v1