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Council gives preliminary approval for conduit bonds to fund renovation of 127‑unit senior housing
Summary
The council unanimously granted preliminary approval for the city to act as conduit issuer for tax‑exempt bonds (not city liability) to support a 127‑unit senior affordable housing renovation, authorizing staff to pursue state allocation and a future public hearing.
The Roseville City Council unanimously approved preliminary support on May 4 for Standard Communities’ application for conduit multifamily housing revenue bonds to finance a renovation of a 127‑unit senior living property in the city.
Bond counsel Rhonda Scobie (Taft Stettinius & Hollister) told the council the city would act as a conduit issuer under state and federal law and that no city funds or liability would back the bonds: "No city funds would be used for the bonds; the city would not have any liability for the payment of the proposed issuance of bonds," she said. The application requests bonding authority from the Minnesota Department of Management and Budget (MMB); counsel said the preliminary requested authority totaled about $23,750,000 and that issuance would be conditioned on state allocation and later council approvals.
Developer Thomas Morrow of Standard Communities said the project — described as 'Roseville Seniors' — would acquire and substantially renovate the building, keep it affordable for roughly 30 years using tax‑exempt bonds and low‑income housing tax credits, and not permanently displace existing tenants: "No tenant will be permanently displaced from this project," Morrow said. He added the developer will provide a resident services coordinator and relocation coordination during renovation work.
Financial and process details: Finance director Sam Magaranu said the city had collected a standard $2,500 application fee and that an issuer administrative fee of about 1% (calculated on final issuance) would be payable to the city if bonds were issued. Council discussion covered likely term length (developer estimated roughly 16–17 years) and the requirement that regulatory agreements tied to tax credits remain with the property.
Outcome and next steps: Council granted preliminary approval to move forward with the application and to coordinate a public hearing if the state awards an allocation. The approval is preliminary and does not commit the city financially; final bond documents and a public hearing would follow before any bonds are issued.
