HomeMy WebLinkAboutResolution - 99-222 - Lincoln Parc Apartments Project - Proposed Multifamily Housing Program & Issuance of Multifamily Housing Revenue Bonds - 12/07/1999 CITY OF EDEN PRAIRIE
]HENNEPIN COUNTY
RESOLUTION NO.99-222
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"Original 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. On September 7, 1999, following a public hearing thereon,this Council adopted a
resolution(the"Original Resolution") approving 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"Original Housing Program") and the
issuance of revenue bonds by the City in the approximate principal amount of$36,000,000 to
finance the costs thereof.
1.3. The City has been advised that the Original Borrower has been replaced by
Governmental and Educational Assistance Corporation, an Arkansas nonprofit corporation, or an
affiliate thereof(the"Borrower") and has prepared an"Amended Program for Multifamily
Housing Development under Minnesota Statutes, Chapter 462C,Lincoln Parc Apartments
Project"(the"Amended Housing Program"), attached hereto as Exhibit A.to reflect this change.
1.4. On November 16, 1999,this Council held a public hearing on the adoption of the
Amended 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. 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 Amended Housing Program and to
undertake and finance the Project, as amended, and interested persons were given the opportunity
to submit written comments to the City Administrator before the time of the hearing.
Section 2. Adoption of Amended Housing Program.
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 Amended Housing Program is hereby approved and adopted in the form
attached hereto; and
(b) the findings with respect to the Project and the preliminary approval of
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 reaffirmed and ratified.
Passed this 7th day of December, 1999.
Jean L.Harris,May
Attest:
Ka leen Porta, City Clerk
E)UMIT A
AMENDED PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT
UNDER MINNESOTA STATUTES,CHAPTER 462C
LINCOLN PARC APARTMENTS PROJECT
This housing finance program is undertaken by the City of Eden Prairie,Minnesota(the"City")
for a multifamily rental housing development located at 8030 Eden Road in the City and amends and
supersedes the housing finance program adopted by the City Council of the City on September 7, 1999.
The Development(as hereinafter described)will be financed by revenue bonds issued by the City
pursuant to Minnesota Statutes, Chapter 462C. The Development will be undertaken to further the
policies and goals stated in the City's Housing Plan.
The Development, called Lincoln Parc Apartments,will consist of the acquisition,construction
and equipping of a multifamily rental housing development of approximately 186 units, a portion of
which are designed for persons of low and moderate income. The Development will be undertaken by
Governmental and Educational Assistance Corporation, an Arkansas nonprofit corporation,or an
affiliate. The expected base monthly rental fees for a one-bedroom unit will be between$546 and$855;
a two-bedroom unit will be between$654 and$1390; and a three-bedroom unit will be between$749
and$1515. The Development will be available for rental to the general public, and will be operated only
as a multifamily rental housing facility for the term of the revenue bonds.
The City will issue revenue bonds to finance the Development in the principal amount not to
exceed$36,000,000. The owner of the Development will be required,pursuant to a revenue agreement,
to make payments sufficient to pay when due the principal of,premium,if any, and interest on all such
revenue bonds. The revenue bonds may be structured so as to take advantage of whatever means are
available or necessary and are permitted by law to enhance the security for and marketability of the
revenue bonds. Substantially all of the net proceeds of the revenue bonds(the initial principal amount
thereof, less amounts deposited in a reasonably required reserve or paid out as costs of issuance of the
revenue bonds)will be used to pay the costs of the Development,including any functionally related and
subordinate facilities.
The Development will be operated as a multifamily rental housing development within the
meaning of Minnesota Statutes, Chapter 462C.
Acquisition of the Development will be carried out in accordance with applicable land use and
development restrictions, and construction of the Development is subject to applicable state and local
building codes. The Development is consistent with the City's Housing Plan under Minnesota Statutes,
Chapter 462C. The owner of the Development will be required to operate the project in accordance with
state and local anti-discrimination laws and ordinances.
The City has adequate existing capacity to administer,monitor and supervise the Development,
although the City has reserved the right to contract with other public agencies or private parties for these
purposes.
The costs of the Development and the program of financing the Development,including
specifically the costs of the City generally will be paid or reimbursed by the owner of the Development
or from the application fee paid to the City by the owner.