HomeMy WebLinkAboutResolution - 89-142 - Refunding $5,560,000 Bonds for Edenvale Apartments - 07/18/1989 CITY OF EDEN PRAIRIE, MINN.ESOTA
RESOLUTION NO. l
AUTHORIZING CERTAIN AMENDMENTS TO THE FORMS OF AN
APPROVING THE FORM AND AUTHORIZING THE EXECUTION
AND DELIVERY OF AN INDENTURE OF TRUST AND A LOAN
AGREEMENT RELATING TO THE ISSUANCE OF THE CITY OF
EDEN PRAIRIE, MINNESOTA, $5,375,000 HOUSING DEVELOPMENT
REVENUE REFUNDING BONDS (EDENVALE APARTMENTS
PROJECT), SERIES 1989A, AND $185,000 TAXABLE HOUSING
DEVELOPMENT REVENUE BONDS (EDENVALE APARTMENTS
PROJECT), SERIES 1989B
WHEREAS, the City of Eden Prairie, Minnesota (the "Issuer") is a statutory
city duly organized and existing under the Constitution and laws of the State of
Minnesota; and
WHEREAS, the Issuer, pursuant to Minnesota Statutes, Chapter 462C, as
amended (the "Act"), is authorized to carry out the public purposes described
therein and contemplated thereby by issuing its revenue bonds and is authorized to
enter into any agreements made in connection therewith; and
WHEREAS, the Issuer on August 31, 1982, issued its $5,500,000 City of Eden
Prairie, Minnesota Housing Development Revenue Note (the "Prior Note") to First
National BanK of Minneapolis the proceeds of which were lent to Edenvale
f Apartments, a Minnesota general partnership pursuant to a Loan Agreement (the
t "Prior Loan Agreement") dated as of August 31, 1982 between the Issuer and
Edenvale Apartments to finance the costs of acquiring, constructing and equipping
a 174-unit multifamily rental housing development, known as Edenvale Apartments
(the "Project"); and
WHEREAS, pursuant to and in accordance with the provisions of the Prior
Note and the Prior Loan Agreement, the interests and obligations of Edenvale
Apartments thereunder have been transferred to Edenvale Company, a Minnesota
general partnership (the "Company"), as its successor and assign; and
WHEREAS, the Issuer proposes to issue its $5,375,000 City of Eden Prairie,
Minnesota Housing Development Revenue Refunding Bonds (Edenvale Apartments
Project), Series 1989A (the "Series 1989A Bonds"); and
WHEREAS, the Issuer proposes to issue its $185,000 City of Eden Prairie,
Minnesota Taxable Housing Development Revenue Bonds (Edenvale Apartments
Project), Series 1989E (the "Series 1989B Bonds"); and
WHEREAS, the Issuer by the passage of Resolution No. _ on June 20,
1989 (the "Bond Resolution") authorized the issuance of the Series 1989A Bonds to
refund and prepay the entire outstanding principal amount of the Prior Note and
the issuance or the Series 1989B Eonds to be used to pay certain costs of issuance
(the Series 1989A Bonds and the Series 1989B Bonds are referred to jointly herein
as the "Bonds"); and
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WHEREAS, the Bonds will be issued under an Indenture of Trust dated as of
June 1, 1989 (the "Indenture") between the Issuer. and American National Bank and
Trust Company, as trustee (the "Trustee"); and
WHEREAS, the Issuer has agreed to enter into the Loan Agreement dated as
of June 1, 1989 between the Issuer and the Company (the "Loan Agreement')
pursuant to which the Issuer will lend to the Company the proceeds from the sale
of the Bonds; and
WHEREAS, subsequent to the date of passage of the Bond Resolution,
certain modifications and amendments have been proposed to the forms of the
Indenture and Loan Agreement originally approved by the Issuer in the Bond
Resolution, the amended forms of which have been submitted to the Issuer for its
approval.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF EDEN PRAIRIE:
1. That the City Council of the Issuer (the "Council") ratifies and
confirms its findings previously made that the undertaking of the Project within
the Issuer has served to provide decent, safe and sanitary rental housing to Dersons
and families of low or moderate income, as defined in Minnesota Statutes, Chapter
462C (the "Act"), and as such has served the public purposes provided in the Act.
The Council further ratifies and confirms the findings and approvals set forth and
granted by the Bond Resolution.
2. That the Loan Agreement as amended to the date hereof; and the
Indenture are hereby approved. That the Mayor and City Manager of the Issuer are
hereby authorized and directed to execute and deliver on behalf of the Issuer the
Loan Agreement and the Indenture, substantially in the forms now on file with the
Issuer, with such ne--bry and appropriate omissions, modifications, insertions,
and additions as are not materially inconsistent with the form on file with the
Issuer, and which are consistent with the Act, as the City Attorney and Bond
Counsel in their discretion shall determine. The execution of the Loan Agreement
and the Indenture by the appropriate officers of the Issuer with approval of the
City Attorney as to form shall be conclusive evidence that any omissions,
modifications, insertions and additions to such documents meet the conditions of
the preceding sentence. All of the provisions of the Loan Agreement and the
Indenture when executed and delivered as authorized herein, shall be deemed to be
a part of this resolution as fully and to the same extent as if incorporated herein
and shall be in full force and effect from the date of execution and delivery
thereof.
3. That except as set forth above, the Bond Resolution shall remain in
full force and effect from and after the date of this Resolution and all findings,
provisions and approvals set forth in the Bond Resolution are hereby incorporated
by reference into this Resolution.
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Adopted this I Ith day of July, 1989
Mayor
Attest:
City Clerk