02-26-1997 Council Agenda - Laserfiche WebLink

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FROM BRIGGS&MORGAN (FRI) 02. 21' 97 14:38/ST. 14:36/NO. 3560836851 P 4/7 financing to pay the acquisition and rehabilitation costs of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the project would be significantly reduced, but the Developer has also advised the city that with the aid of municipal financing, and resulting low borrowing costs, the Project is economically more feasible; and (f) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW TEERBFORE, BE IT RESOLVED by the City Council of the City of Little Canada, Minnesota, as follows: 1. The City hereby gives preliminary approval to the proposal of the Developer that the City undertake the Project, described above, and the program of financing therefor, pursuant to Minnesota Statutes, Chapter 462C, consisting of the acquisition and rehabilitation of multifamily rental housing facilities within the City and to a revenue agreement between the City and the Developer on such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal and interest on the Bonds in the total principal amount of not to exceed $16,000,000 to be issued pursuant to the Act to finance the acquisition and rehabilitation of the Project; and said agreement may also provide for the entire interest of the Developer therein to be mortgaged to the purchasers of the Bonds, or a trustee for the holder(s) of the Bonds; and the City, acting by and through the City, hereby undertakes preliminarily to issue its bonds in accordance with such terms and conditions. 2. At the option of the City, the financing may be structured so as to take advantage of whatever means are available and are permitted by law to enhance the security for, or marketability of, the Bonds; provided that any such financing structure must be consented to by the Developer. 3. On the basis of information available to the City it appears, and the City hereby finds, that the Project consti- tutes a multifamily housing development within the meaning of subdivision 5 of Section 462C.02 of the Act; that the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Developer to acquire and rehabilitate the Project, and that the effect of the Project, if undertaken, will be to encourage the preservation of multifamily rental housing 343114.1 2 Page 36