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HomeMy WebLinkAboutResolution - 99-167 - Authorizing A Proposed Multifamily Housing Program And Issuance Of Multifamily Housing Revenue Bonds (Lincoln Parc Apartments Project) - 09/07/1999 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO.99-167 RESOLUTION RELATING TO A PROPOSED MULTIFAMILY HOUSING DEVELOPMENT UNDER MINNESOTA STATUTES, CHAPTER 462C,ON BEHALF OF COMMUNITY HOUSING CORPORATION OF AMERICA;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. This Council has received a proposal that the City finance a portion or all of the cost of a proposed multifamily housing development under Minnesota Statutes, Chapter 462C,as amended(the"Act"), on behalf of Community Housing Corporation of America,a Minnesota nonprofit corporation, or a nonprofit affiliate(the"Borrower"), consisting of the acquisition, construction and equipping of a 186-unit multifamily rental housing development to be owned by the Borrower and located at 8030 Eden Road in the City(the"Project"). 1.2. 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. 1.3. 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,Lincoln Pare Apartments 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$36,000,000 to finance the costs thereof. 1.4. On September 7, 1999,this Council held a public hearing 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 Administrator 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 its revenue bonds under the provisions of the Act and the Program to finance the Project in the maximum aggregate face amount of $36,000,000 (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 December 31, 1999. 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 7th day of September, 1999. 4yr4iEu01 kens, ting,Mayor ATTEST: Zimet-ZA katIfteen Porta, City Clerk