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INDUCEMENT RESOLUTION 119 - <br /> EQUISEARCd - PUBLIC HEARING <br /> Rautenstraus read in its entirety Resolution 119, <br /> Series 19S4. 'A Resolution Agreeing to Issue <br /> Revenue bonds to Finance Residential lousing <br /> Facilities for Low-and Middle-Income Families and <br /> Persons.' ltautenstraus established proof of <br /> publication of the Public baring. <br /> Mayor Pauson opened the Public Hearing. <br /> Wanush explained that this Inducement Resolution <br /> for sousing bonds is similar to Industrial <br /> Development Bonds in that the City servos as a <br /> conduit for Special Revenue (Rousing Note) <br /> issuance but assumes no liability for repayment. <br /> The issuance does not affect the credit status of <br /> the City's allocation for future municipal <br /> offerings. <br /> In this program, the City will induce the issuance <br /> of a 3 year Special Revenue Note to provide <br /> construction funds for the Ponderosa Pines <br /> Subdivision at 'below market" municipal rates. <br /> During construction, these funds will be placed in <br /> an interest bearing account where the difference <br /> between the Note rate and the market interest <br /> (arbitrage) will build a cash reserve which will <br /> go towards a down payment for the prospective <br /> purchaser and a payment to the Rousing Authority. <br /> Because of the newness of this type of instrument <br /> and similarity to the IDs, the staff requested the <br /> applicant stipulate benefits to the City. These <br /> are: 1) The developer can not use the arbitrage <br /> portion of these funds to increase profit; 2) The <br /> arbitrage gust have some City-wide or public <br /> benefit. In this case, the developer will make a <br /> portion of the arbitrage available to prospective <br /> buyers and a portion available to the sousing <br /> Authority use for its purposes; 3) Approximately <br /> 409 of the 42 homes in the project will be <br /> designated for moderate income families (incomes <br /> between 130.000 and $33.000); d) The applicant <br /> will develop an affirmative Marketing strategy to <br /> insure buyers within this range and to make the <br /> program widely known within Louisville. <br /> Dennis Xigert, Robert Pullet Associates, Inc., <br /> 1009 Grant St., Denver, CO, explained that he is <br /> Special Consultant to the Joint Venture and is a <br /> planning consultant and land broker. <br /> 4 <br />