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HomeMy WebLinkAbout06-10-20-CH-Gr_Ctrl_Flats_Borrower_Note_Amendment_PH_NoticeCL162-54-655854.v1 CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA NOTICE OF A PUBLIC HEARING WITH RESPECT TO THE REISSUANCE OF A REVENUE NOTE FOR THE BENEFIT OF COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES III NOTICE IS HEREBY GIVEN that the City Council of the City of Columbia Heights, Minnesota (the “City”), will conduct a public hearing on Wednesday, June 10, 2020, at or after 4:00 p.m., in the Council Chambers at City Hall, located at 590 40th Avenue NE in the City, to consider one or more amendments to the terms the Multifamily Housing Revenue Funding Note (Grand Central Flats Project), Series 2017 (the “Tax-Exempt Note”), issued by the City on December 4, 2017, in the original aggregate principal amount of $18,060,000, pursuant to Minnesota Statutes, Chapter 462C, as amended. The Tax- Exempt Note evidences a loan made to the City by Citibank, N.A., a national banking association, the proceeds of which the City loaned (the “Borrower Loan”) to Columbia Heights Leased Housing Associates III, LLLP, a Minnesota limited liability limited partnership (the “Borrower”), for the purposes of financing a portion of the costs of the acquisition, construction, and equipping of a multifamily housing facility comprised of up to 190 affordable rental apartments to be located in two four-story buildings, together with related common amenity spaces, including a fitness facility, a club room, and 140 or more underground parking spaces and an additional 130 or more surface parking spaces, located at 1069 Grandview Court NE and 4729 Grand Avenue NE in the City (the “Project”). The Project is owned and operated by the Borrower. The Tax-Exempt Note is a pass-through obligation relating to the Borrower Loan, which is evidenced by a note from the Borrower to the City (the “Borrower Note”), in the maximum principal amount of $18,060,000. The Tax-Exempt Note refers to the Borrower Note for its basic terms, and therefore an amendment made to one or more of the basic terms of the Borrower Note may be construed as an amendment to the Tax-Exempt Note. The purpose of the amendment includes but is not limited to changing the timing of payments under the Borrower Note. Such amendment will cause a reissuance of the Tax-Exempt Note for tax purposes pursuant to Section 1.1001-3 of the Treasury Regulations promulgated under the Internal Revenue Code of 1986, as amended; therefore, for tax purposes, the Tax- Exempt Note will be treated as if it will be refunded on the effective date of the amendment to the Borrower Note. Following the public hearing, the City Council will consider a resolution approving the amendment to the Borrower Note, which will make a corresponding amendment to the Tax-Exempt Note. The Tax-Exempt Note will continue to be a special, limited obligation of the City payable solely from the revenues expressly pledged to the payment thereof, does not constitute a general or moral obligation of the City, and is not secured by the taxing power of the City or any assets or property of the City except interests in the Project that were granted to the City in conjunction with the original financing. Anyone desiring to be heard during the public hearing will be afforded an opportunity to do so. Dated: 6-3-2020 BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA CL162-54-655854.v1 /s/ Nicole Tingley City Clerk City of Columbia Heights, Minnesota