DEPARTMENT: Physical Development Administration
FILE TYPE: Regular Information
TITLE
title
Discussion Of 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 Inver Grove Heights
end
RESOLUTION
body
Information only; no action requested.
end
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, which is a multifamily residential facility for seniors named Crestview Pointe to be located at 9100 Cahill Avenue in Inver Grove Heights (the Project). The Project will be a 57-unit senior development and is currently under construction. 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 the 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 Project 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, in accordance with the Act. The public hearing is requested to be held at the Dakota County Government Center on December 1, 2026, at or after 9:00 a.m. regarding the issuance of bonds.
RECOMMENDATION
recommendation
Information only; no action requested.
end
FINANCIAL AND STAFFING IMPACTS
None.
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Site Map
Attachment: Presentation Slides
CONTACTS
Department Director: Erin Stwora
Author: Kathy Kugel