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HomeMy WebLinkAboutResolution - 2002-38 - Public Hearing on Proposed Issuance of Multifamily Housing Revenue Bonds Heights at Valley View - 02/05/2002 CITY OF EDEN PRAIRIE HENNEPIN COUNT.', MINNESOTA RESOLUTION NO.2002-38 RESOLUTION CALLING FOR PUBLIC HEARING ON THE PROPOSED ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED$26,500,000 WHEREAS the City of Eden Prairie, Minnesota(the"Issuer") is a municipal corporation organized and existing under the Constitution and laws of the State of Minnesota, and the Issuer is authorized and empowered by Minnesota Statutes, Chapter 462C, as amended (the "Act"), to issue revenue bonds and loan the proceeds from the sale of said bonds to one or more parties to be used to defray all or a portion of the cost of acquiring, constructing, improving and equipping multifamily housing developments, as that term is defined in the Act; and WHEREAS, a proposal has been made to the Issuer by Eden Prairie Leased Housing Associates I, Limited Partnership, a Minnesota limited partnership (referred to herein as the "Borrower"), that the Issuer authorize the issuance of its housing revenue bonds for the purpose of financing a multifamily housing development pursuant to the Act(the"Project"); and WHEREAS, the Project consists of the acquisition and construction of a qualified residential rental facility and the Project is more particularly described in the Housing Program developed pursuant to the Act with respect thereto, a copy of which Housing Program is attached hereto as Exhibit B (the"Housing Program");and WHEREAS, the funds to provide financing for the Project would be obtained through the issuance by the Issuer of its Multifamily Housing Revenue Bonds, in one or more series, in a principal amount not to exceed $26,500,000 (the "Bonds"), which Bonds are to be repaid solely through payments to be made by the Borrower pursuant to a loan or similar agreement to be entered into between the Issuer and the Borrower; and WHEREAS, the Bonds shall be a limited obligation of the Issuer, and shall not constitute nor give rise to a pecuniary liability of the Issuer or a charge against its general credit or taxing powers, and the principal of, interest and premium, if any, on the Bonds shall be payable solely out of the revenues derived from the loan agreement and security provided therefor; and WHEREAS, pursuant to Section 462C.04, Subd. 2, of the Act and Section 147(f) of the Internal Revenue Code, as a condition to the issuance of the Bonds, it is necessary to conduct a public hearing on the issuance of the Bonds and on the Housing Program and to publish notice of said public hearing not less than 15 days prior to the date fixed for the hearing. BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota as follows: -2- 1. A public hearing shall be conducted by the City Council on the issuance of said Bonds and on the Housing Program, such hearing to be held at a meeting of the Council on March 7, 2002, beginning at 7:00 o'clock p.m. in the City Hall, at which hearing all parties who appear shall be given an opportunity to express their views with respect to the issuance of the Bonds and the Housing Program. 2. Notice of such public hearing, in substantially the form attached hereto as Exhibit A, shall be published at least once not less than 15 days prior to the date fined for the hearing, in a newspaper having a general circulation in the City of Eden Prairie. 3. Prior to publication of said notice a copy of the Housing Program to be submitted to the regional development commission for the area in which the City of Eden Prairie is located, if any, for review and comments. Adopted on February 5, 2002 by the Eden Prairie City Council. By: Ronald Case, Acting Mayor Attest: By: Kat een Porta, City Clerk -3- EE1'HIBIT A PUBLIC HEARING ON THE PROPOSED ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $26,500,000 NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City Council of the City of Eden Prairie, Minnesota (the "Issuer") on a proposal that it issue its Multifamily Housing Revenue Bonds, in an aggregate principal amount of not to exceed $26,500,000, in one or more series (the `Bonds"), and on the related Housing Program developed pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"). The hearing will be held at City Hall, located at 8080 Mitchell Road,Eden Prairie, Minnesota, at a meeting of the City Council to be held on Thursday, March 7, 2002, beginning at 7:00 o'clock p.m. The proposed project to be financed by the Bonds consists of the acquisition and construction of a 210-unit qualified multifamily residential rental housing facility(the"Project"), and all as further described in the Housing Program developed pursuant to the Act with respect thereto, a copy of which is on file at City Hall. The facility to be financed by the Bonds will be located on the northwest corner of Valley View Road and Flying Cloud Drive in the City of Eden Prairie, Minnesota. The Project shall be owned and operated by Eden Prairie Leased Housing Associates I, Limited Partnership(referred to as the`Borrower"). The proceeds of the Bonds will be loaned by the Issuer to the Borrower to provide financing for the Project, and the Borrower will agree to repay the loan at times and in amounts sufficient to provide for payment in full of the bonds when due. At said time and place the City Council shall give all parties who appear an opportunity to express their views with respect to the Housing Program and the issuance of the Bonds. Written comments will be accepted at City Hall until the time of hearing. Date: , 2002. BY ORDER OF THE CITY COUNCIL Is/ Kathleen Porta City Clerk A-1 EJCHIBIT B FINANCING PROGRAM FOR THE ACQUISITION AND CONSTRUCTION OF A NIULTIFA MY HOUSING FACILITY Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Eden Prairie, Minnesota (the "City") is authorized to undertake housing development projects and to issue its revenue bonds for the financing of housing development projects. The City proposes to loan the proceeds of revenue bonds to finance the acquisition and construction by Eden Prairie Leased Housing Associates I, Limited Partnership, a Minnesota limited partnership (the "Borrower"), of the multifamily housing facility as more fully described in Appendix A attached hereto (the "Project"). Minnesota Statutes, Chapter 462C requires the adoption of a housing program following a public hearing as required prior to the issuance of housing revenue bonds or other obligations under Chapter 462C. The City intends that financing of the Project may be provided through any one or more of the following: (a) the issuance of up to $26,500,000 in one or more series of housing development bonds of the City (the "Bonds") secured by the Project financed therefrom; and (b) the making or entering into any contracts, agreements, reimbursement agreements, mortgages, assignments, security agreements, guarantees, or similar agreements or instruments as may be necessary in connection with accomplishing the purposes set forth in the Program. The amount of financing for the Project is not expected to exceed $26,500,000. The Project will be owned and operated by the Borrower as a qualified multifamily residential rental project. Rents anticipated to be collected for the various units in the Project are anticipated to be as set forth in Appendix A. The City, in financing the Project, has determined that financing the Project is in the best interest of the public health, safety and welfare of the people of the City of Eden Prairie, Minnesota. Section A. Definitions. The following terms used in this Program shall have the following meanings, respectively: "Housing Unit" shall mean any one of the apartments located in the Project, occupied by one or more persons or a family, and containing complete living facilities. "Land" shall mean the real property upon which the Project is situated as more fully described in Appendix A attached hereto. "Program" shall mean this program for the financing of the Project. Section B. Program for Financing the Project. The City is establishing this Program to provide financing for acquisition and construction of the Project,by the Borrower, at such cost B-1 and upon such other terms and conditions as may be determined by the City in accordance with the Act. The City expects to issue up to $26,500,000 of one or more series of Bonds to finance the Project under the Program. The proceeds of the Bonds will be loaned to the Borrower and applied to finance the acquisition of the Land, construction and equipping of the Project,to fund required reserves and to pay the costs of issuing the Bonds. It is anticipated that any Bonds issued under this Program shall have a maturity of approximately thirty-five(35) years or less and will bear interest at a rate of approximately, but not to exceed, 8.5% per annum with respect to tax-exempt bonds and 9.0% per annum with respect to taxable bonds; however,the Bonds will, of course, be priced to the market at the time of issuance. Section C. Local Contributions to the Program. The Borrower has also requested assistance from the City in the form of tax increment financing and a Community Development Block Grant. The Borrower may also request HOME funds from the Minnesota Housing Finance Agency ("MUN), a Super RFP from MHFA and waiver of certain SAC and WAC fees from the Metropolitan Council. Section D. Standards and Requirements Relating to the Financing of the Project Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the City and the Borrower: (1) The Borrower will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, gender, marital status, or status with regard to public assistance or disability. (2) The Project will be constructed in accordance with applicable zoning ordinances or other applicable land use regulations, including the State Building Code as set forth under Minnesota Statutes, Section 16.83, et seg. (3) The affordability standards and set-aside requirements of Section 462C.05, Subdivision 2 of the Act, and the requirements of Minnesota Statutes, Chapter 474A and Section 142(d) of the Internal Revenue Code of 1986, as amended, will be met. Section E. Issuance of Bonds. To finance the Project pursuant to this Program, the City expects to issue its bonds in a principal amount not to exceed $26,500,000 in the aggregate, in any calendar year secured by the Project and other moneys pledged to the payment of such Bonds. The cost of the Project is presently expected not to exceed$35,000,000. The cost of the Project may change between the date of preparation of this Program and the date of malting of construction loans or issuance of Bonds for such Project. Section F. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, B-2 exceeding the authority of the City or othenvise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Section G. Amendment. The City shall not amend this Program, while Bonds authorized hereby are outstanding,to the detriment of the holders of such Bonds. Section H. State Ceiling. Up to $26,500,000 of the state ceiling for private activity bonds, pursuant to Section 146 of the Internal Revenue Code of 1986, as amended, and Chapter 474A of Minnesota Statutes, will be used with respect to the Bonds B-3