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Council authorizes conduit bonds for 252‑unit Devco Rochester apartments
Summary
The Rochester City Council unanimously approved a resolution to issue up to $70 million in conduit multifamily housing revenue bonds for Devco Rochester Apartments, a 252‑unit development averaging 50% AMI. City staff said the bonds would be a conduit financing and not an obligation of the city.
The Rochester City Council unanimously approved a resolution authorizing the issuance of conduit multifamily housing revenue bonds to finance the Devco Rochester Apartments, a planned 252‑unit affordable housing development.
Trevor Martinez, development manager for Devco, told the council the project has a total development cost of about $85 million — “a little under $340,000 a unit” — and that the developer is requesting the city issue conduit bonds not to exceed $70 million. Martinez said the financing structure would allow the borrower access to tax‑exempt rates and Low‑Income Housing Tax Credits, while making clear that “no money will pass through the city” and the bonds would be secured solely by the borrower’s assets.
Brent Fenby, who introduced the staff presentation, explained the conduit model to the council and noted the financing would not pledge city assets or affect the city’s debt limit. Council members asked Devco about ownership and management; Martinez said Devco typically remains an owner long term and plans to contract property management to Cornerstone rather than manage the Rochester property directly.
Council members also discussed the project’s role in the city’s affordable housing pipeline. Martinez and staff highlighted that the units would average about 50% of area median income, with some units at lower and some at higher percentages, and that the bonds enable access to 4% Low‑Income Housing Tax Credits that help make the project feasible.
With no members of the public speaking during the hearing, a council member moved to adopt the housing program resolution and issue the bonds; the motion was seconded and carried unanimously.
The resolution directs staff to execute related documents necessary to close the financing, consistent with state bond entitlements and the applicant’s commitments. The council did not adopt a zoning or land‑use decision as part of the bond authorization; the action approved tonight concerns the financing mechanism. The applicant and staff will be available to answer follow‑up technical questions as the bond documents are finalized.
