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HomeMy WebLinkAboutRES 13-043 Multifamily Housing Rev BondsCITY OF SAINT ANTHONY VILLAGE STATE OF MINNESOTA RESOLUTION NO.13-043 RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS PURSUANT TO MINNESOTA STATUTES, CHAPTERS 462A AND 462C, ON BEHALF OF ST. ANTHONY LEASED HOUSING ASSOCIATES II, LIMITED PARTNERSHIP BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota (the "City"), as follows: Section 1. Recitals 1.1 St. Anthony Leased Housing Associates II, Limited Partnership, a Minnesota limited partnership (the `Borrower"), has proposed that the City issue its multifamily housing revenue bonds in one or more series (the "Bonds") and loan the proceeds to the Borrower. The proceeds of the Bonds would be used to finance a portion of the costs of the acquisition, construction and equippi% of a 169 -unit multifamily senior housing Project (the "Project') located at 2500 38' Avenue NE in the City. The Borrower has requested that the City consider the issuance of the Bonds, in a principal amount not to exceed $18,750,000, to assist in the financing of the Project. The City is authorized by Minnesota Statutes, Chapter 462C (the "Act'), to issue its revenue bonds (the "Bonds") to finance multifamily housing Projects such as the Project. Minnesota Statutes, Section 462C.07 provides that programs for such multifamily housing Projects may be financed with revenue bonds issued by the City, following adoption of a housing program, after a public hearing, and other proceedings conducted in accordance with the requirements of the Act. A copy of the Housing Program prepared with respect to the Project and its financing (the "Housing Program") has been presented to this Council and is ordered placed on file with the City Clerk. The Housing Program has been submitted to the Metropolitan Council for review and comment as required by the Act. 1.2. At a public hearing, duly noticed and held on the date hereof, in accordance with Minnesota Statutes, Section 462C.05, subdivision 5 and Section 147(f) of the Internal Revenue Code of 1986, as amended, on the proposal to issue the Bonds and approve the Housing Program, all parties who appeared at the hearing were given an opportunity to express their views with respect to such proposal and interested persons were given the opportunity to submit written comments to the City Manager before the date of the hearing. Section 2. Preliminary Approval of Bond Financing. On the basis of the information given the City to date, the views submitted at the public hearing and the written comments (if any) submitted to the City on the Housing Program and issuance of the Bonds, the Housing Program is hereby adopted and preliminary approval is hereby given to the issuance of the Bonds, in an amount not to exceed $18,750,000, to provide financing for the Project. The adoption of this resolution shall not be deemed, however, to establish a legal obligation on the part of the City or its Council to issue or to cause the issuance of the Bonds. All details of the Bonds and the provisions for payment thereof shall be subject to final approval of this Council prior to their issuance. The Bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues to be received from the operation of the Project and owner thereof specifically pledged to the payment thereof, and each Bond, when, as and if issued, shall recite in substance that the Bond, including interest thereon, is payable solely from said revenues and funds specifically pledged to the payment thereof, and shall not constitute a debt or pecuniary liability of the City within the meaning of any constitutional or statutory limitation. Section 3. AAvplication for Bond Issuance Allocation. The Mayor and City Manager, in consultation with the Borrower, are authorized to execute the necessary documents on behalf of the City to apply for an allocation of bonding authority for the Project pursuant to the provisions of Minnesota Statutes, Chapter 474A. Adopted this 28`" day of May, 2013. Jerome O. Faust, Mayor Attest: Barbara J. St 'u, City Clerk