City approves $7.97 million taxable GO bond sale for Chasewood Villas HIA to finance unit repairs
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Summary
Council adopted a resolution awarding the sale of $7,970,000 in taxable general‑obligation housing‑improvement bonds (Series 2025A) for the Chasewood Villas HIA; advisors reported competitive bids (4.74% low bid) and noted prepayments and 188 units preserved.
The Minnetonka City Council on Nov. 10 adopted a resolution awarding the sale of taxable general‑obligation bonds (Series 2025A) for the Villas of Chasewood Housing Improvement Area in an original aggregate principal amount of $7,970,000. The sale day report presented by bond advisor Shane (Ehlers) showed two bids for the taxable issue with a low bid at 4.74 percent and a tight spread to the other bid (4.8 percent), which staff described as a good market outcome for a taxable HIA sale.
Background and purpose: The HIA financing will support exterior and major repairs on an approximately 188‑unit townhome community that sought city‑sponsored financing to take advantage of the city's credit rating and lower borrowing costs. Some owners prepaid assessments and the balance of benefitting properties will amortize payments over a 20‑year term via fees collected through property tax bills under Minnesota statute for HIAs.
Council action: Councilmember Calvert moved to adopt the resolution awarding the sale in the revised principal amount of $7,970,000 (not the $8,000,000 estimate included in the initial packet); the motion was seconded and approved by unanimous roll call. Closing was scheduled for Dec. 2. Staff and the mayor emphasized the policy importance of preserving 188 units of naturally occurring affordable housing via the HIA mechanism.
Why it matters: The HIA approach allows property owners to access lower interest rates using the city's credit, supports deferred‑maintenance remediation in aging housing stock, and preserves affordable units that otherwise might be redeveloped.
