NU Council to consider loan for apartment project
NEW ULM – The New Ulm City Council will meet at 5 p.m. today in the Council Chambers at City Hall.
The Council will consider approving a resolution to issue a $4.6 million housing revenue bond to help finance Highland Regency House, LLC in building a 50-unit apartment complex at 1520 Sunset Ave.
The proposal would have the proceeds of the bond provided to the project as a loan. The business would be responsible for paying all direct and indirect expenses resulting from the bond. The loan would be secured with a letter of credit with a bank. The loan permits the City to act as a “conduit” to allow the interest on the bond to be exempt from federal income tax.
If approved, the bond should not affect the City’s credit rating or impact its $10 million annual bond limit. The type of bond pertains to a separate $10 million annually in bonds limit for qualified non-profit organizations like hospitals, nursing homes or senior living housing.
The bond would be in addition to any funding from sources like a TIF district.
In other agenda items, newly hired New Ulm Retail Development Corporation (NURDC) Director Michelle Wood will introduce herself and detail her focus areas for the program.
The Council will also receive a communication from New Ulm Area Chamber of Commerce President Audra Shaneman on the 2013-2014 budget for the Convention and Visitors Bureau. The report indicates that this year is likely a record year for the lodging tax collected.
Finally, the Council will hear a report from the finance director on the timeline for public hearings to work on the 2014 City budget.