DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
title
Scheduling Of Public Hearing Regarding Issuance By Dakota County Community Development Agency Of Bonds Backed By Full Faith And Credit Of Dakota County To Finance Affordable Rental Housing For Seniors In City Of Inver Grove Heights
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RESOLUTION
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WHEREAS, pursuant to Minnesota Statutes, Chapter 475 and Sections 469.001 through 469.047 (the Act), and particularly Section 469.034, subd. 2, the Dakota County Community Development Agency (the CDA) is authorized to issue bonds to finance qualified housing development projects and, with the consent of Dakota County (the County), pledge the County’s full faith and credit to such bonds; and
WHEREAS, the CDA proposes to issue bonds (the New Money Bonds) to finance a multifamily rental housing development to be located in Inver Grove Heights (the Project), which will provide housing for low- and moderate-income elderly persons and which constitutes a qualified housing development project; and
WHEREAS, the CDA has requested that the County pledge its full faith and credit to the New Money Bonds; and
WHEREAS, the Act requires as a condition precedent to issuance of the New Money Bonds that both the CDA and the County hold public hearings regarding the issuance thereof.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby schedules a public hearing for December 1, 2026, at 9:00 a.m., in the Boardroom, Administration Center, 1590 Highway 55, Hastings, Minnesota, to receive comments and authorize the Dakota County Community Development Agency to issue New Money Bonds to finance affordable rental housing in the city of Inver Grove Heights; and
BE IT FURTHER RESOLVED, That County staff is hereby authorized and directed to work with the Dakota County Community Development Agency to publish the public hearing notice in a newspaper of general circulation in Dakota County, not fewer than seven days prior to the public hearing and post said notice on the Dakota County Community Development Agency website at www.dakotacda.org and the County website at www.dakotacounty.us.
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BACKGROUND
In 1989, the Dakota County Board of Commissioners (County Board), in partnership with the Dakota County Community Development Agency (CDA), embarked on a plan to develop affordable senior housing throughout Dakota County. This plan, called the Senior Housing Capital Improvement Plan (CIP), detailed the locations of future senior buildings, the order of construction, and the means of financing the housing development. The CDA fully implemented the first three phases of this plan with the construction of 30 buildings (1,845 units) and has developed a preliminary Phase IV that was approved by the CDA Board of Commissioners on November 18, 2025.
The CDA is proposing to finance the first project of Phase IV, a senior multifamily residential facility named Crestview Pointe to be located at 9100 Cahill Avenue in Inver Grove Heights (the Project). The Project is currently under construction and will be a 57-unit senior development. A site map is attached (Attachment: Site Map). To finance the Project, the CDA proposes to issue its Governmental Housing Development Bonds in the principal amount of approximately $16,500,000 (the 2027 Bonds). The 2027 Bonds will be issued on a parity with other housing development bonds previously issued, or to be issued, to finance projects completed by the CIP (all together, the Bonds).
The 2027 Bonds to be issued are proposed to be general obligation bonds and backed by the full faith and credit of Dakota County. The Bonds will be secured by revenues generated by the CDA Common Bond Fund, which includes this Project and existing senior projects; by the CDA Special Benefit Levy; and to further secure the 2027 Bonds, thereby reducing interest rates, by a pledge by the CDA of the full faith and credit of Dakota County. Revenue from operating the buildings and the CDA tax levy will be used to pay debt service for Bonds issued under the CIP. By providing its general obligation pledge, the County will provide the bonds with a higher rating and significantly lower interest costs. Without the general obligation pledge, debt service would be higher, which would result in the CDA constructing fewer units or charging higher rents.
Minn. Stat. § 469.034, subd. 2 (the Act) requires the County Board to conduct a public hearing prior to approving the issuance of the Bonds by the CDA. On October 27, 2026, the CDA Board adopted a resolution requesting the County Board hold a public hearing and approve the pledge by the CDA of the County’s full faith and credit to the Bonds.
RECOMMENDATION
recommendation
Staff recommends a public hearing be scheduled for 9:00 a.m. on December 1, 2026, in the Boardroom, Administration Center, 1590 Highway 55, Hastings, MN, to receive comments and authorize the CDA to issue housing development bonds backed by the full faith and credit of Dakota County to finance an affordable housing development for seniors in the City of Inver Grove Heights.
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FINANCIAL AND STAFFING IMPACTS
The 2027 Bonds to be issued are proposed to be general obligation bonds and backed by the full faith and credit of Dakota County. The Bonds will be secured by revenues generated by the CDA Common Bond Fund, which includes this Project and existing senior projects; by the CDA Special Benefit Levy; and to further secure the 2027 Bonds, thereby reducing interest rates, by a pledge by the CDA of the full faith and credit of Dakota County. Revenue from operating the buildings and the CDA tax levy will be used to pay debt service for Bonds issued under the CIP. By providing its general obligation pledge, the County will provide the bonds with a higher rating and significantly lower interest costs. Without the general obligation pledge, debt service would be higher, which would result in the CDA constructing fewer units or charging higher rents.
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Site Map
Attachment: Draft Public Hearing Notice
CONTACTS
Department Director: Erin Stwora
Author: Kathy Kugel