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Council approves $8.08 million HIA bond sale to preserve Villas at Chase Wood
Summary
Council adopted a resolution authorizing sale of $8,080,000 in Housing Improvement Area bonds to fund preservation and repairs at the Villas at Chase Wood; staff said final costs came in below earlier estimates and 49 owners prepaid assessments.
The Minnetonka City Council on Sept. 29 adopted a resolution authorizing issuance of Housing Improvement Area (HIA) bonds totaling $8,080,000 for the Villas at Chase Wood.
Community-development staff said the final project cost was approximately $10.8 million, about $1.4 million below earlier estimates, and 49 homeowners prepaid their assessments, bringing in about $3.3 million. "The resolution is for the housing improvement bonds at $8,080,000; staff does recommend approval," Ms. Wishnack told the council. The bond term was described as 21 years with an initially estimated 7% interest rate; the actual sale rate will be set at pricing.
Staff explained the assessment and bond-issuance process and described protections for the city should property owners default, noting the risk of nonpayment is small and that the bond structure anticipates some nonpayment scenarios. Councilmember Romilly moved to adopt the bond-resolution, Councilmember Calvert seconded, and the motion passed in a unanimous roll-call vote.
Next steps: staff will proceed with bond issuance and complete required accounting for prepayments and overage credits to owners who prepaid.
