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HomeMy WebLinkAboutResolution - 2002-80 - Adopting a Financing Program for the issuance of Bonds for the Acquisition and Construction of a Multifamily Housing Development - The Heights at Valley View Project - 04/16/2002 CITY OF EDEN PRATREE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO. 2002-SO RESOLUTION ADOPTING A FINANCING PROGRAM FOR THE ISSUANCE OF BONDS FOR THE ACQUISITION AND CONSTRUCTION OF A MULTIFAMILY HOUSING DEVELOPMENT WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, the City of Eden Prairie, Minnesota(the"City")is authorized to issue and sell revenue bonds for the financing, acquisition and construction of multifamily housing developments; and WHEREAS,the City desires to issue its revenue bonds to finance a portion or all of the cost of a proposed project under Minnesota Statutes, Chapter 462C on behalf of Eden Prairie Leased Housing Associates I,Limited Partnership,a Minnesota limited partnership(the"Borrower"). The Project consists of the acquisition and construction of a 186-unit qualified residential rental multifamily housing facility(the"Project"), and will be located in the City; and WHEREAS,Minnesota Statutes,Section 462C.04 requires the adoption of abond financing program after a public hearing held thereon after publication of notice in newspapers of general circulation in the City at least fifteen days in advance of the hearing; and WHEREAS, the City, on March 7, 2002 and continued on April 16, 2002,has conducted a public hearing on a multifamily housing bond financing program, a copy of which program is attached hereto as Exhibit A(the"Program"), after publication of notice as required by Minnesota Statutes, Section 462C.04; and WHEREAS, Minnesota Statutes, Section 462C.04, Subd. 2 requires any program for the issuance of housing revenue bonds to be submitted to the applicable regional development commission where one exists on or before the date the notice of public hearing is published and the City has submitted the Program to the Metropolitan Council; and WHEREAS,the Program provides for the issuance by the City of housing revenue bonds,in an aggregate amount presently estimated not to exceed $26,500,000 (the "Bonds") to finance the acquisition and construction of the Project; and WHEREAS,the City is authorized to issue bonds for any of its corporate purposes,including financing the Project pursuant to the Program, under Minnesota Statutes, Chapter 462C; NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA THAT: 1. The Program for the issuance of the Bonds is hereby adopted in the form attached hereto as Exhibit A. Adopted this 16th day of April, 2002. CITY OF EDEN PRAIRIE,MINNESOTA 4q;�yrra- e or ATTEST: 4Kahlee-n- Porta, City Clerk EMMIT A FINANCING PROGRAM FOR THE ACQUISITION AND CONSTRUCTION OF A MULTIFAMILY 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 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 A-1 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, 8.0%per annum with respect to tax-exempt bonds and 8.5%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 Pro ram. 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("MHFA"), 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 seq. (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 making 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, exceeding the authority of the City or otherwise 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. A-2 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 A-3 APPENDIX A Estimated Financing Estimated Anticipated Location Needs Units Initial Rents $26,500,000 67- 1 Bdrm $580-1,050 Northwest corner of Valley 69—2 Bdrm $685-1,350 View Road and Flying 28—2 Bdrm+Den $1,525 Cloud Drive 8—3 Bdrm $1,725 14—Luxury $2,300 015492/202837/179722_2 APP. A-1