Public Hearing RE Elements of Financial Package for rono Woods

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[Ron Moorse- Housing Program-Orono.doc Page 3 administer the Bonds. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel,the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program except as otherwise provided by resolution of the City. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Subsection C. Local Contributions To The Program. It is presently contemplated that there will be a local contribution of funds to the Project consisting of tax increment financing by the Authority or the City for Land acquisition and certain public costs, together with an appropriation of funds for a local contribution. Subsection D. Standards and Requirements Relating to the Financing of the Projects Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the Owner pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the acquisition and construction of the Project. The funds will be made available to the Owner pursuant to the terms of the Bond offering, which may include certain covenants to be entered into between the City and the Owner. (2) The Owner will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (3) No Housing Unit may be in violation of applicable zoning ordinances or other applicable land use regulations, including any urban renewal plan or development district plan, and including the state building code as set forth under Minnesota Statutes, Section 16.83,et seq. Subsection E. Evidence of Compliance. The City may require from the Owner or such other person deemed necessary at or before the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Owner to complete the Project, and evidence satisfactory to the City of compliance with the standards and requirements for the making of the financing established by the City, as set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Owner in order to confirm such ability, intention and compliance. In addition, the City may periodically require certification from either the Owner or such other person deemed necessary concerning compliance with various aspects of the Program. Subsection F. Issuance of Bonds. To finance the Program authorized by this Section,the City may by resolution authorize, issue and sell its Revenue Bonds in one or more series, and using any additional credit enhancement devices determined by the City to be necessary or desirable for each such series, in an aggregate principal amount estimated to be up to$9,000,000. The Bonds shall be issued pursuant to Section 462C.07, Subdivision 1 of the Act, and shall be HOUSING PROGRAM 3