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HomeMy WebLinkAboutResolution - 2004-88 - Proposing Broadmoor Multi-Family Housing Project  - 06/01/2004 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO. 2004-88 RESOLUTION PROPOSING A MULTIFAMILY HOUSING DEVELOPMENT PROJECT, TAKING OFFICIAL ACTION WITH RESPECT THERETO,AND INDICATING PRELIMINARY INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C. WHEREAS, The City is authorized pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act") to finance the malting or purchasing of loans with respect to multifamily housing developments within the boundaries of the City of Eden Prairie, Minnesota(the "City"); WHEREAS, The full faith and credit of the City will not be pledged to the payment of the principal of,premium, if any, and interest on the revenue bonds; WHEREAS, The City has received a proposal from Broadmoor Apartments, hie., a Minnesota nonprofit corporation, which is related to Presbyterian Homes and Services (the "Company") that the City assist in financing a Project hereinafter described, through the issuance of revenue bonds or notes in the approximate aggregate principal amount of $8,400,000 (hereinafter referred to in this resolution as "Revenue Bonds") pursuant to the Act and in accordance with a housing finance program prepared with respect to the Project (the "Housing Program"); WHEREAS, The undertaking of the proposed Housing Program and the issuance of the Revenue Bonds to finance the cost thereof will further promote the public purposes and legislative objectives of the Act by expanding and assisting the multifamily housing operations of the Company in the City; WHEREAS, The Project to be financed by the Revenue Bonds is the acquisition of 227 residential condominium units and 73 attached garage units in the multifamily housing facility commonly known as Broadmoor Apartments located at 635 Prairie Drive in the City (the "Project"); WHEREAS, The City has been advised by representatives of the Company that conventional, cominercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota, as follows: 1. The Council hereby indicates its preliminary intent to undertake the Project pursuant to the Act and the Housing Program and to issue the Revenue Bonds in the approximate principal amount of$8,400,000 pursuant to the Act to finance the Project. 2. The City staff is hereby authorized to cause to be prepared and published a notice of public hearing with respect to the Housing Program. 3. The issuance of the Revenue Bonds by the City is subject to, among other things, consideration of any comments presented at the public hearing, and final approval by this Council, the Company, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project. 4. The Company 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 Minnesota Housing Finance Agency; whether or not the Project is carried to completion; and whether or not the Revenue Bonds or operative instruments are executed. 5. All commitments of the City expressed herein are subject to the condition that by December 31, 2004 the City and the applicant shall have agreed to mutually acceptable terms and conditions of the Revenue 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 extension thereof, and the Revenue Bonds are not sold within such time, this resolution shall expire and be of no further effect. 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 Company. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Revenue Bonds, or issue the Revenue Bonds in an amount less than the amount referred to in paragraph 1 hereof, should the City at any time prior to issuance thereof determine that it is in the best interests of the City not to issue the Revenue Bonds, or to issue the Revenue 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 terns and conditions of any of the documents required for the transaction. 7. It is the purpose of this resolution to evidence the commitment of the parties and their intentions with respect to the proposed Project in order that the Company may proceed without delay with the commencement of the acquisition of the Project with the assurance that there has been sufficient "official action" within the meaning of the Internal Revenue Code of 1986, as amended, to allow for the issuance of multifamily revenue bonds (including, if deemed appropriate, any interim note or notes to provide temporary financing thereof) to finance the entire cost of the Project upon agreement being reached as to the ultimate details of the Project and its financing. ADOPTED by the City Council of Eden Prairie this 1st day of June, 2004. N cy ra- or ATTEST: Ka hleen Porta, City Clerk