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HomeMy WebLinkAboutResolution - 2000-194 - Proposed Multi-Family Housing Program and Issuance of Revenue Bonds (Rolling Hills Senior Housing Project) - 11/21/2000 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,NIINNESOTA RESOLUTION NO. 2000-194 RESOLUTION RELATING TO A PROPOSED PROJECT AND REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTERS 462A AND 462C, ON BEHALF OF SCF ROLLING HILLS,LLC; ADOPTING A HOUSING PROGRAM THEREFOR BE IT RESOLVED by the City Council of the City of Eden Prairie,Minnesota(the "City"), as follows: Section 1. Recitals and Findings 1.1. The City is authorized by Minnesota Statutes, Chapters 462A and 462C, as amended(the"Housing Programs Act'),to issue its revenue bonds to finance a development consisting of a combination of a multifamily housing development, as defined by the Housing Programs Act, and a new or existing health care facility, as defined in Minnesota Statutes, Section 469.153,which revenue bonds shall be payable solely from revenues of the development or other security pledged therefore. 1.2. SCF Rolling Hills,LLC, a Minnesota limited liability company(the "Borrower"),whose members are Shelter Care Corporation and Ebenezer Society, each a Minnesota nonprofit corporation,has proposed that the City, acting pursuant to the Housing Programs Act, issue its revenue bonds in one or more series (the`Bonds")in an aggregate amount not to exceed$24,000,000,the proceeds of which would be loaned by the City to the Borrower to finance a project(the"Project") consisting of the acquisition of land and the construction and equipping thereon of(i) an approximately 75-unit multifamily rental housing facility designed and intended for occupancy by elderly persons, and(ii) a health care facility consisting of approximately 53 assisted living units and 14 Alzheimer's units,to be owned and operated by the Borrower. The Project will be located at the southeast corner of the intersection of Rolling Hills Drive and Prairie Center Drive in the City. 1.3. Pursuant to the Act,the City is authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed with revenue bonds issued by the City, following adoption of a housing program, after a public hearing, and other proceedings conducted in accordance with the requirements of the Act. 1.4. Section 462C.04, Subdivision 2 of the Act requires that prior to undertaking the financing of the Project,the City must prepare and adopt a housing program after notice and hearing and review given and held as provided therein. The City has prepared a multifamily housing program for the Project, designated as the"Program for Multifamily Housing Development under Minnesota Statutes, Chapter 462C,Rolling Hills Senior Housing Project" (the"Housing Program"). The Housing Program authorizes the Project and the issuance of revenue bonds by the City in the approximate principal amount of$24,000,000 to finance the costs thereof. 1.5. On November 21, 2000,this Council held a public hearing(which public hearing was adjourned from the Council meeting of November 7,2000) on the adoption of the Housing Program after publication of the notice of hearing not less than 15 days prior to the date thereof in a newspaper circulating generally in the City. A copy of the draft Housing Program has been forwarded to the Metropolitan Council(the"Metropolitan Council")for review. The public hearing was duly noticed and held in accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended. All parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to adopt the Program and to undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing. Representatives of the Metropolitan Council did not submit comments on the Program at or prior to the public hearing. Section 2. Adoption of Housing Program. 2.1. Based on the public hearing, such written comments(if any) and such other facts and circumstances as this Council deems relevant,it is hereby found, determined and declared: (a) the Project would assist the preservation of needed housing units in the City; (b) the Housing Program is hereby approved and adopted in the form presently on file with the City; and (c) the issuance by the City of the Bonds under the provisions of the Act and the Program to finance the Project in the maximum aggregate face amount of $24,000,000 (the`Bonds")is hereby preliminarily approved. 2.2. A. 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 carried to completion; and whether or not the Bonds or operative instruments are executed. B. 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 Section 1 hereof, 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 issue the Bonds in an amount less than referred to in Section 1 hereof, or should the parties to the transaction be unable to reach agreements as to the terms and conditions of any of the documents required for the transaction. C. All commitments of the City expressed herein are subject to the condition that the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the Loan Agreement,the Bonds, and of the other instruments and proceedings relating to the Bonds and that the closing of the issuance and sale of the Bonds shall have occurred by no later than November 21, 2001. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Bonds are not sold within such time,this resolution shall expire and be of no further effect. ` D. 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. Passed this 21st day of November,2000. ean L.Harris,Mayor Attest: Ka een Porta, City Clerk -3-