ADMINISTRATION - Joe Huss, Finance Director
Title
SECOND READING
ORDINANCE AMENDING APPENDIX A - LOCAL ACTS - ARTICLE 1. HOUSING AND REDEVELOPMENT AUTHORITY SECTION 8 - BLAINE HOUSING AND REDEVELOPMENT AUTHORITY AUTHORIZING THE BLAINE ECONOMIC DEVELOPMENT AUTHORITY TO EXERCISE, ON BEHALF OF THE CITY OF BLAINE, THE POWERS CONFERRED BY MINNESOTA STATUTES, SECTION 462C.01 TO 462.10.
Background
Anoka County Community Action Program (ACCAP) has been working with the City and Anoka County on a residential redevelopment concept that would include the removal ACCAP’s four homes, the two homes not purchased by the Anoka County Highway Department, and six of the now vacant lots that were purchased by the ACHD. ACCAP has reached an agreement to purchase the two homes currently still privately held. The proposed redevelopment project would include 30 townhomes within five separate buildings on this property.
ACCAP is now requesting the use of the Blaine EDA’s bonding authority to issue conduit housing bonds to provide funding for the project. Issuing through the EDA would allow the bonds to be issued as bank qualified debt which would provide a lower interest rate on the bonds and allow for lower issuance costs. The estimated total cost of the project is $6.7 million and ACCAP is seeking approval of the EDA to issue no more than $5 million in conduit debt for the project. Per Minnesota Statute 462C.02, before the EDA can issue housing bonds, the City must adopt an ordinance that provides that authority to the EDA.
Recommendation
Hold second reading and adopt the proposed ordinance.
Body
THE CITY OF BLAINE DOES ORDAIN: (added portions are underscored and deleted portions are shown in brackets with overstrike)
Notwithstanding the limitations on the number of housing and redevelopment commissioners provided by Minn. Stat. § 462.425, subds. 5 and 6, all the members of the governing body of the City of Blaine may serve as commissioners of the Blaine housing and redevelopment authority at the same time.
a) The Blaine Economic Development Authority (the “EDA”) has been duly organized pursuant to Minnesota Statutes, Section 469.090 to 469.1082, as amended, (the “EDA Act”), as amended, and has all of the powers and duties of an economic development authority under the EDA Act and of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”).
b) The legislature of the State of Minnesota has enacted Minnesota Statutes, Chapter 462C (the “Act”) to regulate the planning and implementation of single family housing programs and multifamily housing development and has provided for the financing of such programs and developments pursuant to the terms of the Act.
c) The City desires to authorize the EDA to exercise the powers in Minnesota Statutes, Sections 462C.01 to 462C.10, to develop and administer programs of making or purchasing mortgage or rehabilitation loans to finance the acquisition, construction or rehabilitation of single family housing by low and moderate income persons and families anywhere within its boundaries, or making or purchasing loans to finance multifamily housing developments, upon certain conditions set forth in the Act.
d) Accordingly, the EDA is hereby authorized to exercise on behalf of the City, all of the powers conferred by Minnesota Statutes, Section 462C.01 to 462C.10.
INTRODUCED AND READ in full the 1st day of September, 2016.
PASSED by the City Council of the City of Blaine this 15th day of September 2016.