HomeMy WebLinkAboutResolution - 2001-183 - Preliminary Approval For Issuance of Tax-Exempt Bonds and Authorizing Application for Allocation of Bonding Authority (Heights at Valley View) - 12/04/2001 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,NIINNESOTA
RESOLUTION NO.2001-183
RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE
OF TAX-EXEMPT BONDS AND AUTHORIZING
APPLICATION FOR ALLOCATION OF BONDING AUTHORITY
WHEREAS, the City of Eden Prairie, Minnesota (the "City") is authorized to issue tax-
exempt bonds subject to the annual statewide volume cap on such bonds; and
WHEREAS, the City has received a proposal to issue its special revenue obligations in an
aggregate principal amount not exceeding $26,500,000 (the "Bonds") to finance the acquisition
and construction of a 210-unit qualified residential rental project (the "Project") located at the
Northwest corner of the intersection of Valley View Road and Flying Cloud Drive in the City of
Eden Prairie,Minnesota; and
WHEREAS, the City anticipates lending the proceeds of the Bonds to Eden Prairie
Leased Housing Associates I, Limited Partnership, a limited partnership (the`Borrower"); and
WHEREAS, the Borrower has represented that it will reimburse the City for any
administrative expenses incurred by the City in connection with the issuance of the Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EDEN PRAIRIE that:
1. The City Council hereby states its preliminary intention to issue its tax-exempt
bonds in the aggregate principal amount not exceeding$26,500,000 to finance the
costs of the Project.
2. The City Manager and authorized officers of the City, together with Best &
Flanagan LLP, as bond counsel with respect to the Bonds, are hereby authorized
to prepare and submit to the State of Minnesota Department of Finance, an
Application for Allocation of Bonding Authority for Tax-Exempt Financing under
Federal Tax Law, in accordance with the provisions of Minnesota Statutes,
Chapter 474A.
3. The City Manager is hereby authorized and directed to take all steps necessary
and desirable to proceed to develop the Project and the financing therefor.
4. The Borrower has agreed to pay directly or through the City any and all costs
incurred by the City in connection with the Project; whether or not the Project is
approved by the Minnesota Housing Finance Agency; whether or not the Project
is carried to completion; and whether or not the Bonds or operative instruments
are executed.
5. All commitments of the City expressed herein are subject to the condition that by
December 31, 2002 the City and the Borrower shall have agreed to mutually
acceptable terms and conditions of the Loan Agreement or Revenue Agreement,
the Bonds and of the other instruments and proceedings relating to the Bonds and
their issuance and sale. If the events set forth herein do not take place within the
time set forth above, or any extensions thereof, and the Bonds are not sold within
such time.
6. The adoption of this Resolution does not constitute a guarantee or a firm
commitment that the City will issue the Bonds as requested by the Borrower. The
City retains the right, in its sole discretion, to withdraw from participation and
accordingly not to issue the Bonds, or issue the Bonds in an amount less than the
amount referred to in paragraph 1 hereof, should the City at any time prior to the
issuance thereof determine that it is in the best interests of the City not to issue the
Bonds, or to issue the Bonds in an amount less than the amount referred to in
paragraph 1 hereof, or should the parties to the transaction be unable to reach
agreement as to the terms and conditions of any of the documents required for the
transaction. Additionally, this Resolution and the preliminary approval of the
City set forth herein are contingent upon receipt by the Borrower of an allocation
of bonding authority from the Minnesota Department of Finance with respect to
the Project in an amount equal to or greater than the principal amount of the
Bonds prior to the issuance and sale of the Bonds.
ADOPTED by the Eden Prairie City Council this 4th day of December,2001.
X �V44W
an L.Harris,Mayor
ATTEST:
KatlAeen Porta, City Clerk