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HomeMy WebLinkAboutRES 85-033 RSOLUTION ADOPTING A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A DEVELOPMENT AND ITS FIANANCING, UNDER MINNESOTA STATUTES, CHAPTER 462C, AND AUTHORIZING SUBMISSION OF THE PROGRAM TO THE MINNESOTA Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 102423 Box: 23 Folder: RES 1985 Document: RES 85-033 RSOLUTION ADOPTING A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A DEVELOPMENT AND ITS FIANANCINF� UNDER MINNESOTA STATUTES, CHAPTER 462C, AND AUTHORIZING SUBMISSION OF THE PROGRAM TO'THE MINNESOTA" • CERTIFICATION OF MINUTES RELATING TO Multifamily Housing Revenue Bonds (Chandler Residence Project ) Issuer: City of St. Anthony, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on Tuesday, July 9, 1985, at 7:30 o 'clock P.M. at the City Hall. Members present: Sundland, Makowske, Marks , Ranallo, and Enrooth. Members absent: None Documents Attached: " Minutes of said meeting (pages ) : RESOLUTION NO. 85;_0334 RESOLUTION ADOPTING A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A DEVELOPMENT AND ITS FINANCING, UNDER MINNESOTA STATUTES, CHAPTER 462C, AND AUTHORIZING SUBMISSION OF THE PROGRAM TO THE MINNESOTA HOUSING FINANCE AGENCY FOR REVIEW AND APPROVAL I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all .documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS m hand officially as such recording officer this CNoL4day of , 1985. $ignare Carol Lou Johnson, Clerk-Finance Director RESOLUTION NO. 85=0834 RESOLUTION ADOPTING A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A DEVELOPMENT AND ITS FINANCING, UNDER MINNESOTA STATUTES, CHAPTER 462C, AND AUTHORIZING SUBMISSION OF THE PROGRAM TO THE MINNESOTA HOUSING FINANCE AGENCY FOR REVIEW AND APPROVAL BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota (the City) , as follows: SECTION 1 Recitals and Findings 1 . 1. By the provisions of the Act, the City is authorized to plan, administer, issue and sell revenue bonds or obligations to make or purchase loans to finance one or more multifamily housing developments within its boundaries, which revenue bonds or obligations shall be payable solely from the revenues of the development. 1. 2. The City has developed a housing plan and, after holding a public hearing thereon after notice published at least thirty days prior thereto, has adopted the housing plan and submitted it for review to the Metropolitan Council and has received its comments. 1 . 3. The Act provides that the City may plan, administer and make or purchase a loan or loans to finance one or more developments of the kinds described in Subdivisions 2, 3, 4 and 7 of Section 462C.05 of the Act, upon adoption of a program setting forth the information required by Subdivision 6 of Section 462C.05 of the Act, after a public hearing thereon, and upon approval by the Minnesota Housing Finance Agency (the Agency) , as provided by Section 462C.01 of the Act, on the basis of the considerations stated in Section 462C.04 of the Act. 1.4. This Council has received a proposal that the City finance a portion or all of the cost of a proposed multifamily housing development under Minnesota Statutes, Chapter 462C, as amended (the 'Act ) , consisting of the construction and equipping of an apartment building containing approximately 117 rental housing units together with parking and other functionally related and subordinate facilities (the Development ) , to be located in the City at the northeast corner of the intersection of Chandler Drive and 37th Avenue Northeast (County Road D ) . The developer and owner of the Development -2- will be St. Anthony Nursing Home, A Co-Partnership, a Minnesota • [limited] general partnership (the Developer ). 1 . 5. The City has caused to be prepared a program with respect to the Development and its financing (the Program) . At a public hearing, duly noticed and held on , 1985, in accordance with the Act and Section 103 (k) of the Internal Revenue Code of 1954, as amended, on the proposal to undertake the Program and finance the Development, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake the Program and finance the Development, and interested persons were given the opportunity to submit written comments to the City Manager before the time of the hearing. 1.6. The Developer has requested that the City issue its revenue bonds in one or more series pursuant to the authority of the Act in an aggregate principal amount not to exceed $6,350, 000, to finance all or a portion of the costs of the Development, and to make the proceeds of the bonds available to the Developer for the acquisition, construction and equipping of the Development, subject to agreement by the Developer to pay promptly the principal of and interest on the bonds. 1 . 7. The City has been advised by the Developer that conventional commercial financing is available to pay the capital costs of the Development only on a limited basis and at such high costs of borrowing that the scope of the Development and the economic feasibility of operating the Development would be significantly affected, but with the aide of municipal financing the Development can be constructed as designed and its operation can be made more economically feasible. 1.8. This Council has been advised by representatives of the Developer and Juran & Moody, Inc. , of St. Paul, Minnesota, that on the basis of information available to them and their discussions with the Developer and potential purchasers of tax-exempt bonds, the Bonds could be sold at favorable rates and terms to finance the Project. 1 .9. The full faith and credit of the City will not be pledged to or responsible for the payment of the principal of, or premium or interest on the bonds. SECTION 2 2. 1. On the basis of the information given the City to date, it appears that it would be desirable for the City to -3- issue its revenue bonds under the provisions of the Act to finance the Development in the maximum aggregate principal amount of $6,350, 000. 2.2. It is determined to proceed with the Development and its financing and this Council hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Development. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its City Council to issue or to cause the issuance of such revenue bonds. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the Bonds should the City at any time prior to the issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or should the parties to the transaction be unable to reach agreement as to the structuring of the financing or as to the terms and conditions of any of the documents required for the transaction. All details of such revenue bond issue 'and .the provisions for payment thereof shall be subject to reveiw and approval of the Program by the Agency and may be subject to such further conditions as the City may specify. The bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues 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 the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2. 3. The Program is hereby approved, and in accordance with Section 462C.04, Subdivision 2 of the Act, the City Manager and City Clerk are hereby authorized and directed to cause the Program to be submitted to the Agency for review and approval. The City Manager, City Clerk, .City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Agency with any preliminary information needed for this purpose. 2. 4. Pursuant to Subdivision 1 of Section 462C. 07 of the Act, in the making of the loan to finance acquisition, construction and equipment of the Project and in the issuance of the bonds or other obligations of the City, the City may exercise, within its corporate limits, any of the powers the Agency may exercise under Chapter 462A, Minnesota Statutes, without limitation under the provisions of Chapter 475, Minnesota Statutes. -4- 2.5. The Developer has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with the Program and the Development, whether or not the Development is carried to completion, whether or not the Program is approved by the Agency, and whether or not the City by resolution authorizes the issuance of the bonds, will be paid by the Developer upon request. Passed and adopted by the City Council of the City of St. Anthony this 9th day of July, 1985 Mayor Attest: 's _ City Clerk ` rn Reviewed for Administration: J ' ` GrAIC6 City Manager The motion for the adoption of the foregoing resolution was duly seconded by Member Enrooth , and upon vote being taken thereon, the following voted in favor thereof: Marks., Enrooth, Sundland, Ranallo, Makowske. :. and the following voted against the same: None whereupon the resolution was declared duly passed and adopted and was signed by the Mayor and attested by the City Clerk. -5-