01-22-1997 Council Agenda - Laserfiche WebLink

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SUMMARY STATEMENT The following summary is subject in all respects to the more complete information contained in this Official Statement. The Project: Cedars Lakeside Apartments (the "Project "), a 156 -unit multifamily housing development, is located in the City of Little Canada, Minnesota. Use of Proceeds and Security for the Bonds: Proceeds of the Series A Bonds and certain other moneys provided by the Borrower will be used to redeem on February 3, 1997, the Multifamily Housing Revenue Bonds, Series 1986 (Cedars Lakeside Limited Partnership Project) issued by the City of Little Canada, Minnesota (the "Prior Bonds "), as described herein. The Prior Bonds were issued to finance the acquisition and construction of the Project. Proceeds of the Series B Bonds will be used to pay certain issuance and other costs associated with the Bonds and the Project. Concurrently with the issuance of the Bonds, a mortgage loan in the amount of $7,182,500* will be made by Glaser Financial Group, Inc., a Minnesota corporation (the "Lender ") to Cedars Lakeside Limited Partnership, a Minnesota limited partnership (the "Borrower "). The Mortgage Loan will be evidenced by a nonrecourse mortgage note of the Borrower, secured by a first mortgage lien on the Project, and insured by the Federal Housing Administration ( "FHA ") under Section 223t0 of the National Housing Act. FHA has issued a commitment that requires FHA, upon the Borrower's compliance with the terms thereof, to insure the Mortgage Loan. Proceeds of the Mortgage Loan, together with certain other funds of the Borrower, will be deposited on the date of issue in the Acquisition Fund held by the Trustee. On or before February 28, 1997 (as such date may be extended pursuant to the terms of the Indenture), the Trustee will disburse amounts held in the Acquisition Fund to the Lender, upon delivery by the Lender to the Trustee of a fully modified mortgage backed security (the "GNMA Security") issued by the Lender and guaranteed as to timely payment of principal and interest by the Government National Mortgage Association ( "GNMA "). Under Section 306(g) of Title III of the National Housing Act, as amended, the full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid by GNMA under its guaranty of the GNMA Security. The Bonds are secured by and payable from payments to be received by the Trustee on the GNMA Security and moneys and investments held by the Trustee under the Indenture, including moneys held in the Acquisition Fund and invested pending the issuance of the GNMA Security, as described herein. Preliminary, subject to change The Lender: Glaser Financial Group, Inc., a Minnesota corporation. The Borrower: Cedars Lakeside Limited Partnership, a Minnesota limited partnership. Redemption Provisions: The Series A Bonds and the Series B Bonds are subject to redemption in whole or in part at any time on or after February 1, 2007, (i) from prepayments on the GNMA Security representing optional prepayments on the Mortgage Loan by the Borrower, or (ii) from Excess Revenues on deposit in the Bond Fund, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, plus accrued interest to the redemption date, plus a premium on certain dates, as described herein under "THE BONDS -- Redemption -- Optional Redemption." The Series A Term Bonds maturing on August 1, 2016 are subject to mandatory sinking fund redemption at par on February 1 and August 1 in each of the years 2013 through 2016. The Series A Term Bonds maturing on August 1, 2021 are subject to mandatory sinking fund redemption at par on February 1 and August 1 in each of the years 2017 through 2021. The Series A Term Bonds maturing on February 1, 2032 are subject to mandatory sinking fund redemption at par on February 1 and August 1 in each of the years 2022 through 2032. The Bonds are also subject to mandatory redemption at a price of par plus accrued interest to the redemption date, without prepayment premium or penalty, at any time, as soon as practicable, (a) in whole but not in part, Page 11