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