Real coffee. We Colon care. Johnson here, Joe Kim here maker Yang here, 6 present one absent that being commission, acre. Item number one staff report. 25 Dash 2, 1, 3, reservation of year 2026. Low income tax credits for the Aragon Development located at 4.70, wife There Avenue district, one Ward, 7. We have our first item wich is just a staff I. see tat director and talking walking out. So I headed over director Just to the same as union to stretch and to give the presentation welcome tools for you. Thank you for that. And then check with afternoon. I'm sure and get to discuss no income for deposition for the 20 6 instead, by way, by program program that was
created by phone. Not double by thousands for think that being a teacher or that I think that's because of what find positive developments comply with rules and then I distinctions. In south of the housing finance ball. So the housing is to could indicate the and in causing from last fall. So far joint he says some tax credits. It's ball is ok, Nice look at credits projects in some ball. That particular location of credits and sample for the year 2026. This 1 million, 140,450 fall dot us. And that if the
motive for On JUNE, 12th 2025. deadline to submitting applications on JULY. 24 2025. Staff received the applications to a gun. The island faced. We I'm seeing you and they discussed the certifications. Details starting with the added object. He says tt units, new construction of by the covid, if if and located that 5.40, would be a venue and for open because of 27 million fund 50 15,000. We thought it through tax. Could you be quiet in the amount of 2 Million? 222,007 So when a $40. In addition to
it would be requesting it subsidy from the city and amount of $500,000 So project is headline beach pastry. This also new construction. 59 in from the Vo and the location is vote on cake. Diving on the fraught sites. Don't do that. Stuff. 26 Million. 800,000. Including it a little tax credit to the question them. All 2 million, 54,002 fall 1000. You know and they would be requesting subsidy from the city in the amount of 2 million dollar U.S.. Defying received if petition project oftentimes the healed development. This is the vote a straight face still get that treat the Marshall Avenue. Project cost. Little bit of a 17 million dollar loss. Philippe told past quest All 1 million, 515,000.
And they also plan to request subsidy from the city in the amount of 1.4 million dollar U.S.. reviewed the applications and came down a couple of projects. Out a gun and the heightened fees. Weve if points for gun on Highland Beach, 80 points. petition 65 points. The defense was made it crea the and thanks for all. It. Pretty uncle trying to position criteria, as you MAY see, a Highland ph claim any point asked to out 10 points. Committee member last spring. The hre amended right there bed of cloudy fi to develop this. What specific mission of options must taken on points? That's result. Bp received 10 points West Beacon. I'm
sorry, Pps not claim any buying. Let's be can claim 10 points. Because propose a show the debate on fought include the planning and development of these projects. On these that aggression stuff is the That is a version of the 2026, I think that's in the amount 1 million, 140,454, U.S.. For Project. Does that if you MAY have any questions? just going submitted or any questions that come from commissioners Project. He says story. And future tense. I had a question aout the factors. I saw one of factors was integrated costs If you can go back to that. If check yes. Can share with
the breakdown of of how that's determined in terms of equity in contract Gration. Chad Johnson Commission is a about last spring when the Ammended if he wanted to make these criteria. Yeah. So all. The proposals people making all develop as we can propose of exactly what fate from them. The MAY, for example, in of proposal. Higher it to and ahead, then walk for the community. It was a survey that was put in place by the schools open. Thoughtful and I mean, do it? Video quite that simple questions on one thing. For example, say she wanted to the units because you 4 kids and counting you new one bed. One bath home. She wanted. And that use bathroom. And then
come after don't see that when the way they there with designing the building for units. Whereas the other proposal that could be a proposal, then didn't claim anything any points because he didn't have anything to see as fuel. And they're trying If you just say it again, the scores are course. I couldn't refuse that the applicants applicant to come in. To Jean said, I'm sorry. Could you repeat the question? Reviews applications as they come The scoring who've? Jay Johnson changes and the mission is 2 pots. First of all, the op the hostile Call. Themselves right? So and then the staff committee that the review the reviews all these petition gotten compare what
go give themselves. I use it a pretty consistent. Thank I think that this is it's really great that you were able to kind provide some of the back on. And so that sincerely appreciate Just on the process and the procedures and then some of the changes that we've already made I will say that I think I glad to see that there's a on the list knowing that their 3 there are 3 applications that all appears specially on the space to have things about them that I personally care strongly about ensuring to see. I think it would be really helpful to know on the back and just and then for the sake of folks that are looking into and maybe this project in I one of my constituents as well who's been a part of some of the the commission's around in the air. GOD, can you just speak
to specifics about like this funding does play? The mission is that that's the Phones, the bases, the in Jabal. Expenses. When we into development. So these is for expenses. So when big e, for example, right now, the applications, one roughly 1.1 million dollars and the estimate the cost of credit to be at $0.80. It creates what its integrated. All right. So he's tossed in dual roughly 8 Million. U.S.. Of equity. Definitely think it will be of. And that's the and and. 27 million dollar loss. So basically putting in. If approved. Its median
dollar loss. So that means that that inquest into 0.2 million dollars of credits. It just means that it would have to come back cfr edition it. But just want to make clear that estimate of the could you just on this to me just runs made so goes down the of the gap on the project. Thank yu. And I think just as a as we continue to talk about this funding source overall, as we continue to talk about why might act well. I see it being really important to continue to fund projects like this. I mean, if you look back at the 3 different proposals that we did receive for this year, 30% and-50 percent. And my scores for all 3 applications, including that the different criteria is, I think are telling in quite important. And so I hope that as we continue to think about this
source and what its meant to be able to support and utilize that we really start to prioritize that in future conversations bcause and my eyes, some of these higher scoring or an alignment than some of the some of the others and some of the factors that weigh into this I think are in alignment with how the program was initially designed to be when. I appreciate that Things Church on Sunday. Just have a couple of things right? I want to place my support for what is being proposed here. I thought you did a really great job. Just laying dtails of the of the different applications that you'll receive. So, you know, really keeping all in for that. I was interested in hearing about. So just I can't really get far. rfp presentations have been have been a. If the slides
have been. Basically a simple this weight, but I definitely for future ones to it was just really clear cut. Thank you for a really great presentation. Lastly, I just seem like it's not always common that we come across. Proposals where it is for a larger size family households. So this is something that is really important, too. The east side community knowing that it is an area in Saint Paul where we do have many immigrant refugee families that do tend to come from like your households. So it is just to me, like really speaks to the importance of developers really building housing that meets the needs of the communities. And so this am and I think that it is really fitting not only for use it, but also really for the direction of where we want to go as the city over also for your work and doing the scoring and just bringing this
in front of the council. Every and thank you so director. Talk to. He is playing magical happening in between 2 places. Item number 2 staff report. 25 Dash 2, 1, 4, introduction to twin cities. German immersion Honda with project. And as I said, this is the year the kind bounds. In front of us here. This haven't worked 5. Director McMahon. Doesn't mind Alchemist will for her presentation. Good afternoon. Chair Johnson and commissioners. I'm Jenny Wolf with pe. And I'm here to talk about an introduction to the request for the trade issue. Conduit revenue refinancing bonds for the Twin Cities. CHAIRMAN Immersion school. I know I've done this quite a few times, but I do like include a quick overview of what kind of and
our just to make the cear message that the tree and the city no risk me. So kind revenue. Bonds are special, limited revenue obligations of a tray and they provide tax exempt interest rates for the nonprofit far. Access to the tax-exempt interest rate reduces the cost of the debt to the bar. The bonds are not secured by revenues are taxing powers of the a train. Our city. And a tree issued bonds are repayable solely from revenues of the bar. Tree serves only as a conduit to finance a project. The bar secures loan funds through the bond underwriter, which entity complete all due diligence and the tree and the city undertake no risk when issuing the bonds. Alternatively,
without the conduit revenue bonds, the bar would be to secure a conventional loan and that would increase the cost of the project. So on to this request assist when cities German immersion school here, sir, a of the school location. They're a Minnesota public charter school located at 10 31 Como Avenue and they serve students in Pre-k through grade 8 on have a current enrollment of 550 students. In 2013 a tree issued 8 and a half million in revenue. Bonds for the school to finance their facility in their current location. The project included the acquisition of existing buildings renovation and the construction of an addition the current outstanding balance is 6.8, 1,
5 Million. Additionally in 2019, the school completed renovations and the 8 reissued 7.1, 5, 5 million in kinder revenue bonds. And the school is authorized by the University of Saint Thomas and provides an innovative education through CHAIRMAN The school has applied to the trade to issue conduit revenue bonds to refinance or refund the bnds that we issued in 2013, the purpose of the refinancing is to reduce their annual debt service payments by extending the final maturity of the bonds. The will be issued in an amount not to exceed 10 million and will be sold through a public offering with Piper Sandler serving as the bond underwriter. In accordance with pe these kind to advance
policies, the bonds will need to be sold with minimum Van der nominations based on the credit rating. The underwriter currently anticipates a rating of double b, which would result in 25,000 minimum dot to find a nominations. The minimum bond a nomination requires that none of the individual bonds MAY be held in a principal amount less than 25,000. The prior bonds issued in 2013 currently make sure on JULY one of 2044 and the proposed new term will extend the final maturity to 2065. The current projections include bond payment, savings of approximately 55,000 annually. The proposed bonds or special limited revenue revenue obligations of the hra and are repayable solely through revenue of the schools and tree received revenue. One
issue in conduit revenue bonds. Furthermore, the 2019 bonds that I that I mentioned are not included in the refinancing. Those funds will remain outstanding. The total estimated cost of the project is 8 Million. 145,000 the sources and uses will continue to change until the actual closing. And this this slide currently shows a total principal amount of bonds issued by the Tree of 7.3, 9 million, which will be used along with funds on hand from the prior bonds to refund the 2013 bonds to fund a debt service reserve and to pay the cost of issuing the bonds, including the underwriter discount. Pds Internal Credit committee reviewed the bond issuance proposals and SEPTEMBER 23rd. The Credit committee's review is solely
to confirm the proposal meets our internal policies relating to kind revenue bonds. The credit committee is not revealing. The repayment plan are indicating any opinion of the quality of the credit. The internal policies related to the payment of fees and the sale in place for requirements for the tray issued bonds and the credit committee confirmed that all requirements have been or will be met. The eatery is currently collecting annual fee revenue from the prior bonds that we issued. And wth the extended final maturity will collect additional revenue. In addition, we will collect closing feet on the new issuance equal to one quarter of one percent of the amount issued which totals $18,000 for the principle known showing on the prior slide just for a little bit of context. The trees General
fund budget for 2025. Includes 2.9 million in kind of what van few revenue of which 772,000 is from closing fees. And tis 18,000 would represent just over 2% of the annual budgeted amount. If a tree board is required to authorize the issuance of the bonds, which will include a public hearing. The city council is also required to approve the issuance of the bonds from the public hearing requirements as the elected representative of the unit. Resolutions will be considered by both bodies in one week from today on OCTOBER. 15th. And just as a reminder, again, the bonds are repayable solely from revenues the bar and the tree received revenue. One issue in the Last but not least a quick reminder that when we win the tree issues kind revenue, bonds, certain compliance requirements are
triggered for the power because there isn't any new construction here. The only compliance that will be triggered I the affirmative action, equal employment opportunity requirements. And the school has already met requirement. This does and my portion of the presentation. And unless questions for me, I would like to invite the school's executive director and Principal Elizabeth send funding to address. The board. And the initial questions. And I that using the 7th inning, apologize for the mispronunciation of the last thing. I was looking at it like okay. Here we go well, coming second, 3, 3rd. Thank you. Diverse address. You. I heard Council
or you can say. Council member there are some issues like you're chair commissioner. Okay, great. Thank you, council members for having I also brought with me my board chair. Ledger. Just to represent that. We are governed by a board. Thank you to Jenny for all the work that we've done so far. Ever paper representation. But I'm not necessarily here to time. They can beat you up. You address that every ok? That's I think many those weird. But you can I think, you know, this from here. Yes, perfect. I'm not necessarily here to talk about the finances of the of the arrangements. I think that the understand the basics and paper is really handling all the. The details. Primarily here to talk about the y to talk about our school. And so if aren't familiar with the twin sister members in school, we're located in the Como Lake
area. We just celebrated our 20th anniversary. The facts mere Carter issued a proclamation that SEPTEMBER 20th was twin Cities, Urban Emergency School, 20 anniversary day. So we just celebrated that I've been a public educator for 26 years. 6 years of those as an administrator at this school, the school was founded in 2005 and that was the right decided. I needed to have kids have kids up until then. But when the school was founded, I had just a little bit more incentive. Mason was born 2 years later. And that ended this school for the entirety of his k 8 career. He started in that second building. We're in the 2013 bonds where approved for that addition.
And both my kids were there in 2019 to reap the benefits of the addition in 219. What I understand about charter school finance and I and I hope to relate to all that. A neat is that we do everything that public schools do on about 75 to 80% less of the funds. We're not allowed to Levy, which puts us at a slate financial disadvantage. So something like being able to. Leverage or if these bonds have come to call something to leverage that is a really big difference for us. The savings that you saw in this light show. About 50,000. We haven't settled on exact amount. But just for perspective, that's one teacher my school. So every year that we would do this, we get to hold on to one where teacher or maybe 2 classrooms full of math
materials. So the money doesn't seem like a lot to anybody who works at Saint Paul public. But to us, it's a huge amount. We also will be correct to some lease aid. I want to heirs, we filled out the 2013 bonds to moved this new building. Our enrollment was projected to ben able to go up to about 6.40, and after covid. And we all know demographically speaking, they're less children that are being born. We likely won't hit that for quite some time. And police say it has since received an increase since 2013. It's still $1000. A kid. So the difference in the original lease application. What we have right now is but $150,000. So we have to try to recover that every year, you
know, just to kind of stay. Slightly behind. Not even ahead. So it's a really help us cut that as well. We service 545 kids. We that. W show proficiency. We stick to our mission and we do. German immersion really well. What we also do is academic excellence or kids graduate from 8th grade and they are allowed to with a memorandum understanding or agreement through Saint Paul public go to Central High School. And continue that immersion track. So we have tons of alumni that our Saint Paul public school students, despite maybe not even living in Saint Paul district. 47%. Of our students, our Saint Paul kids and the other come from 5
different counties all around. Really proud of the academic work that we do really proud of the academic studies that we sent essential to continue their work. This was just, you to us. Are there any questions or anything you'd like to know? Well, thank you so much for also being here and being able to speak this, too. I'm sure I'm not sure if they took in the back or anything, but we have monopoly of central grads. Speaking of speaking of only we're on the monopoly board this and face Thank you, students thank you. Thank you, director for being here. I was turn Saturday, said it, but I was just got my question was really going to be where the students go after grade. And it's the question that central and one of the central gads, everyone on the side of the table in the center happy. Happy to hear that. And I just really appreciate you being
here and all the information they shared. Yeah, no worries. I have some percentage is about the number of kids, but really, it really depends on each grade and my son's great to 85% of our kids went to central and they were really big They took 55 or 60 of them. There. Most of them are still there. And I will assume haven't Central graduate because my son is graduating this year. So, yeah, it's been great addition to our program and also and here's the question for me that I get asked a lt. Are you adding We have a program. We have a 9.12 program. We we work with the Dramatic America Institute around Summit for the our Pre-k program, they run a preschool. And so we are really firm on what we do, which is k 8. That is our focus. That is our goal is getting kids ready to go to central. Commissioner Kim thank you. So I just want to add really appreciate all the information hearing about kind
of some of the updates to 10 cities during a recent school. Turns out comes as are the programs they provide. They're all wonderful. They are not. What makes this organization eligible for a kind And with that, I'm not going to here next week because it aware, right? Very different. But as I'm going to go next week, I'll be out of town, but I'm very supportive of this kind of on going through. Write the check all the boxes, terms of refinancing their financially prepared to take son. So I just spoke was my sport now as it will be out next week. 2 to prove the comment next week. In my absence, but thank you so much for being here. Thank conformation. Wonderful. Thank you so much for being here and being able to talk about one last call for any questions or any comments. Okay. Seeing none. Thank you so much. Great. Thank you. Next week will have a public hearing on
the So that's gonna know the drill at this point for this year. That'll be the case. Also, in addition since our last piece, I will put a little plug as you well know, possibly next week. I will be chairing a few different committee and council meeting meetings as a rsult. The vice chair will be giving preface and chairing this meeting a next week. And first public graduations. But going through that. And then I I asked for some clarity on item number one, just to make sure its approval next week we'll get back to focus on 2. With no further business. We are