01-22-1997 Council Agenda - Laserfiche WebLink

Home Browse Search

hereinafter described that was originally financed by the Prior Bonds, through the issuance of revenue bonds or obligations in one or more series (collectively, the "Bonds ") pursuant to the Act; and WHEREAS, the Project to be refinanced by the Bonds is a 156 unit multi - family rental housing facility located at 2800 Rustic Place (Little Canada Road at Middle Street) in the City (the "Project "); and WHEREAS, the City proposes to refinance the Project by the issuance of its $6,840,000 Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan /Cedars Lakeside Apartments Project) Series 1997A and its $342,500 Taxable Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan /Cedars Lakeside Apartments Project), Series 1997B (collectively, the "Bonds ") under the Act pursuant to this Resolution; and WHEREAS, the Bonds will be issued under an Indenture of Trust (the "Indenture "), dated as of January 1, 1997 between the City and First Trust National Association (the "Trustee "), and will be secured by a GNMA Mortgage - Backed Security (the "GNMA Security ") issued by Glaser Financial Group, Inc. (the "Lender "), and guaranteed as to timely payment of principal and interest by the Government National Mortgage Association and by a pledge and assignment of certain other revenues, all in accordance with the terms of the Indenture of Trust, and the Bonds and the interest on the Bonds shall be payable solely from the revenue pledged therefor and the Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation, nor shall the Bonds constitute nor give rise to a pecuniary liability of the City or a charge against the credit or taxing powers and shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City other than the City's interest in the Project; and WHEREAS, the GNMA Security will be backed by a mortgage loan insured by the Federal Housing Administration (the "Mortgage Loan ") made by the lender to the Company; and WHEREAS, the City conducted a public hearing on the proposal of the Company that the City refinance the Project by the issuance of the Bonds, at 7:00 p.m. on December 18, 1996, at which hearing all persons who appeared or submitted comments were given an opportunity to express their views with respect to the Project and the Bonds; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Little Canada, Minnesota, as follows: 1. Proposal. For the purpose of refunding the Prior Bonds attributable to the Project, and thereby refinancing the Project, the issuance, sale and delivery of the Bonds is hereby authorized. The proceeds of the Bonds together with other funds 775842.1 Page 4