The Ramsey City Council finalized the sale general obligation (GO) tax increment bonds April 24 for The Residence project.
The unanimous vote finalized the sale of $7.32 million in GO bonds, which has the term of 10 years, to help fund the construction of a 230-unit market rate luxury apartment complex west of the municipal center begin done by Flaherty and Collins (F&C) Properties.
The bond amount was less than $7.42 million originally planned because of underwriter’s discount and a decrease in costs of issuance, said Stacie Kvilvang of Ehlers Associates and the city’s Housing and Redevelopment Authority’s financial advisor.
The true interest on the bond, which was sold April 24, will be 2.45 percent, she said.
F&C will have repay the bond and will be paying a higher interest than the city, Kvilvang said.
“The city will be making a little bit on this, as long as goes as it should,” said Mayor Bob Ramsey.
The first payment on the GO bond is scheduled for June 2015.
F&C, which closed on three acres of city-owned property Monday, will be building the apartment and rental townhome project around the municipal parking ramp.
The project will also receive $20.45 million in private financing from PNC Bank.
The land sale proceeds for the city’s HRA were $750,000.
Tammy Sakry is at firstname.lastname@example.org