Title
Approving a bond allocation transfer agreement and related documents, and authorizing carryforward of certain unused private activity bond volume cap, citywide.
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the “Act”); and
WHEREAS, the City of Saint Paul is a home rule charter city (“City”); and
WHEREAS, the pending federal tax reform legislation has created uncertainty as to whether the City and the HRA may issue tax-exempt private activity bonds after December 31, 2017; and
WHEREAS, such uncertainty has caused developers and other borrowers of tax-exempt private activity bond proceeds to request that the HRA accelerate the closing of several such bond issues on or before December 31, 2017; and
WHEREAS, the current requests of the HRA to issue its tax-exempt private activity bonds on or before December 31, 2017 are more than the City’s 2017 entitlement allocation of private activity bond volume cap; and
WHEREAS, to address the shortage of private activity volume cap, the City and the HRA propose to enter into a Bond Allocation Transfer Agreement (“Transfer Agreement”) with the City of Minneapolis (“Minneapolis”), whereby Minneapolis would transfer to the City and the HRA $18,098,203 of Minneapolis’ 2017 entitlement allocation of private activity bond volume cap (the ‘Transferred Volume Cap”); and
WHEREAS, at such time as Minneapolis and the City are advised by bond counsel that tax-exempt private activity bonds may be issued on and after January 1, 2018, the City and the HRA will transfer to Minneapolis $18,098,203 of the City’s 2018 entitlement allocation of private activity bond volume cap, provided that the City receives a 2018 entitlement allocation of at least such amount; and
WHEREAS, the HRA Board of Commissioners has been asked to...
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