Title
Resolution approving the issuance by the Fergus Falls Housing and Redevelopment Authority of conduit Multifamily Housing Revenue Bonds on behalf of Schuett Otter Tail LP using, in part, recycled bonding authority from the Millberry Apartments Project, 778 Berry Street, District 12, Ward 4
Body
RECITALS
WHEREAS, Minnesota Statutes, Chapter 462C (the “Act”) confers upon cities the power to issue revenue bonds to finance or refinance a program for the purposes of planning, administering, making or purchasing loans with respect to one or more multifamily housing developments within the boundaries of the city or under a joint powers agreement with the jurisdiction in which the development is located and pursuant to Minnesota Statutes, Section 471.59, as amended. By the terms of a joint powers agreement entered into through action of their governing bodies, two cities may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised; and
WHEREAS, Schuett Otter Tail LP, a Minnesota limited partnership (collectively with an affiliated entity, the “Borrower”), desires to finance the acquisition, rehabilitation, and equipping of a 100-unit multifamily housing development known as River Bend Apartments located at 222 North Whitford Street, Fergus Falls, Minnesota (the “River Bend Apartments”), and a 30-unit multifamily housing development known as Kaleva Apartments located at 205 Walker Avenue North, New York Mills, Minnesota (the “Kaleva Apartments,” and together with the River Bend Apartments, the “Project”); and
WHEREAS, the Borrower will be the initial owner and operator of the Project, and the Project will preserve federally subsidized housing; and
WHEREAS, in order to better leverage public funding by recycling bonding authority as permitted by Section 146(i)(6) of the Internal Revenue Code of 1986, as amen...
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