HomeMy WebLinkAboutResolution - 82-170 - Preliminary Approval - Housing Revenue Bonds - Baypoint Manor - $7,000,000 - 07/20/1982 a�
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After some discussion, member introduced
the following resolution and moved its adoption:
RESOLUTION NO. < i 70
RESOLUTION RELATING TO THE ISSUANCE OF REVENUE
BONDS PURSUANT TO CHAPTER 462C , MINNESOTA
STATUTES , FOR THE PURPOSE OF FINANCING A
MULTI-FAMILY HOUSING DEVELOPMENT; GIVING
PRELIMINARY APPROVAL TO THE DEVELOPMENT ,
AUTHORIZING THE PREPARATION OF AND A PUBLIC
HEARING ON A HOUSING PROGRAM AND AUTHORIZING
SUBMISSION OF THE HOUSING PROGRAM FOR REVIEW
BE IT RESOLVED by the City Council of the City of
Eden Prairie, Minnesota (the City ) , as follows:
Section 1. Recitals.
1 . 01 . By the provisions of Minnesota Statutes ,
Chapter 462C , as amended (the Act) , the City is .authorized
to plan, administer , issue and sell revenue bonds or
obligations to make or purchase loans to finance one or
more multifamily housing developments within its
boundaries which revenue bonds or obligations shall be
payable solely from the revenues of the development.
1 .02 . The Act provides that , prior to issuing
revenue bonds or obligations to finace a multifamily
housing development , the City must develop a housing plan
and , after holding a public hearing thereon after notice
published at least thirty days prior thereto , submit the
housing plan for review to the regional development
commission .
1 . 03 . On February 2 , 1982 , after thirty days
published notice , this Council adopted the City of Eden
Prairie ' s Comprehensive Guide Plan and Housing Assistance
Plan (which is within the Housing Chapter of the
Comprehensive Guide Plan) . The Comprehensive Guide Plan
was approved by Metropolitan Council pursuant to
Subdivision 1 of Section 402C. 04 of the Act on March 11 ,
1982.
1 . 04 . The Act further provides that the City may
plan , administer and make or purchase a loan or loans to
finance one or more developments of the kinds described in
Subdivisions 2 , 3 , 4 and 7 of Section 462C . 05 of the Act
upon adoption of a program setting forth the information
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required by Subdivision 6 of Section 462C. 05 of the Act
after a public hearing thereon and upon approval by the
Minnesota Housing Finance Agency as provided by Section
462C. 01 of the Act on the basis of the considerations
stated in Section 462C . 04 of the Act.
1. 05 . Messrs . Walter D. Doelz and James E . Gratz
( the Developers ) , who will be general partners in G & D
Enterprises , a Minnesota partnership ( the Partnership ) ,
have advised this Council of their desire to acquire
certain land located at 11111 Neil Lake Road in the City
and to construct and equip thereon a 152-unit rental
apartment building together with parking and related
facilities ( the Project ) . Total development and financing
costs are presently estimated by the Developer to be
approximately $8, 811 , 978.
1 . 06 . The Developers have requested that the
City issue its revenue bonds in one or more series ( the
Bonds ) pursuant to the authority of the Act in such
aggregate principal amount as may be necessary to finance
all or a portion of the costs of the Project and make the
proceeds of the Bonds available to the Partnership for the
acquisition, construction and equipping of the Project ,
subject to agreement by the Partnership to pay promptly
the principal of and interest on the Bonds .
1 . 07 . The City has been advised by the Developer
that conventional commercial financing is available to pay
the capital costs of the Project only on a limited basis
and at such high costs of borrowing that the scope of the
Project and the economic feasibility of operating the
Project would be significantly affected , but with the aid
of municipal financing the Project can be constructed as
designed and its operation can be made more economically
feasible.
1. 08 . The Council has been advised by
representatives of Newman and Associates, of Denver ,
Colorado , that on the basis of information available to
them and their discussions with the Developers and
potential purchasers of tax-exempt bonds, the Bonds could
be sold at favorable rates and terms to finance the
Project.
1. 09 . The full faith and credit of the City will
not be pledged to or responsible for the payment of the
principal of and interest on the Bonds .
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Section 2. Approvals ; Authorization and Hearing .
2 .01 . It is hereby found and determined that it
would be in the best interests of the City to issue the
Bonds under the provisions of the Act in an amount
currently estimated to be $7 , 000 , 000 to finance a portion
of the cost of the Project.
2. 02. The Project is hereby given preliminary
approval by the City and the issuance of the Bonds for
such purpose approved , subject to conditions on such
approval as may be required as a result of the public
hearing called pursuant to Section 2. 04 hereof . The Bonds
shall not be issued until the multifamily housing program
described below has been reviewed and approved as provided
by the Act and until the City, the Partnership and the
Underwriter have agreed upon the details of the Bonds and
the provisions for their. payment. The principal of ,
premium, if any , and interest on each Bond , when, as and
if issued , shall be payable solely from the revenues of
the Proj `2ct and the property pledged to the payment
thereof and shall not constitute a debt of the City. The
City Attorney and other officers of the City are
authorized in cooperation with Dorsey & Whitney , as bond
counsel , to initiate preparation of such documents as may
be appropriate to the financing of the Project setting
forth the detailed terms of the Bonds , the security
therefor and provisions for payment of the principal ,
premium, if any, and interest thereon in compliance with
state and federal statutes and regulations .
2 . 03. Attached hereto as Exhibit A is a program
for a multifamily housing development prepared pursuant to
the requirements of Subdivision 5 of Section 462C . 05 of
the Act ( the Program ) . The City Clerk is hereby
authorized to cause notice of public hearing ( in
substantially the form of Exhibit B hereto ) to be
published in ar�.�^^�� �' � - �'�- 'mY=o;;;ve -�=:Q in the Eden
Prairie News at least thirty ( 30 ) days before the date on
which a public hearing will be held by this Council. The
City Clerk and the City Manager are authorized to
establish the date of such public hearing. Subsequent to
the public hearing , the Mayor , City Manager , City Clerk
and other officers and employees of the City are hereby
authorized to prepare and execute the required
certifications and submit the Program to the Minnesota
Housing Finance Agency for review and approval in
accordance with Subdivision 5 of Section 462C. 05 and
Subdivision 2 of Section 462 . 04 of the Act ,
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2 . 04 . Pursuant to Subdivision 1 of Section
462C . 07 of the Act , in the making of the loan to finance
acquisition , construction and equipment of the Project and
in the issuance of the Bonds or other obligations of the
City , the City may exercise , within its corporate limits ,
any of the powers the Minnesota Housing Finance Agency may
exercise under Chapter 462A, Minnesota Statutes , without
limitation under the provisions of Chapter 475 , Minnesota
Statutes .
2 . 05 . The Developer 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 Program
is approved by the Minnesota Housing Finance Agency;
whether or not the Project is carried to completion; and
whether or not the Bonds and all operative instruments are
executed .
2 . 06 . 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 Developer . The
Citv retains the right in its sole discretion to withdraw
from participation and accordingly not issue the Bonds
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 should the City, the Developer and
any other parties to the transaction be unable to reach
agreement as to the terms and conditions of any of the
documents required for the transaction.
2. 07 . All commitments of the City expressed
herein are subject to the condition that within twelve
months of the date of adoption of this Resolution the City
and the Developer shall have agreed to mutually acceptable
terms and conditions of the Bonds , the operative documents
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 Bonds are not
sold within such time, this Resolution shall expire and be
of no further effect .
Passed and adopted by the Cit j Council of the
City of Eden Prairie this 20th da July 1
Mayor
Attest :?4.eT;f-
y Clerk
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?� The motion for the adoption of the foregoing
resolution was duly seconded by Member ,
and upon vote being taken thereon , the following voted in
favor thereof :
and the following voted against the same:
whereupon the resolution was declared duly passed and
adopted and was signed by the Mayor and attested by the
City Clerk .
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EXHIBIT A
PROGRAM FOR MULTIFAMILY HOUSING DEVELOPMENT
UNDER CHAPTER 462C - BAYPOINT MANOR PROJECT
Messrs . Walter D. Doelz and James E . Gratz ( the
Developer ) , who will be general partners in Baypoint
Manor , a Minnesota partnership ( the Partnership ) , have
acquired and intend to exercise an option to purchase
certain land located at 11111 Neil Lake Road in the City
of Eden Prairie, Minnesota ( the City ) , for the purpose of
constructing thereon a 152-unit rental apartment building
(the Project ) . Unit size composition of the Project will
be as follows : 20 one-bedroom units and 132 two-bedroom
units.
Consistent with the housing needs of the City
described in the Eden Prairie Comprehensive Guide Plan
( the Comprehensive Plan) , a report prepared by the City
and Brauer & Associates , Inc . , the Project will enable the
City to meet its two housing goals stated in the
Comprehensive Plan: encourage a variety of housing types
and prices through innovative architectural and land use
and encourage low income housing throughout the City. The
Plan Elements chapter of the housing section of the
Comprehensive Plan calls for continued cooperation between
the public sector and private industry to insure the
production of modest cost housing for middle income
households . The Project will be designed to be affordable
by ?ersons and families with adjusted gross income not in
excess of the limits set forth in Section 462C. 03,
Sutdivision 2 , Minnesota Statutes and by other persons and
families to the extent necessary to further a policy of
economic integration. At least 31 units in the Project
will be held for occupancy by families or individuals with
adjusted gross income not in excess of 80 percent of the
median family income estimated by the United States
Department of Housing and Urban Development ( HUD ) for the
Minneapolis-St . Paul standard metropolitan statistical
area and at least 84 units in the Project will be held for
occupancy by families or individuals whose adjusted gross
income does not exceed sixty-six times the gross rental
for the applicable dwelling unit, provided such gross
rental shall not exceed 120 percent of the Fair Market
Rents for the geographical area in which the Project is
located as determined and adjusted from time to time by
HUD. The remainder of the units in the Project will be
occupied by individuals and families without regard to
income limits . The authorization of revenue bonds to
finance the Project will make the Project feasible.
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It is anticipated that housing development
revenue bonds of the City will be issued and sold pursuant
to Section 462. 07 , Minnesota Statutes , for the purpose of
providing construction and long-term financing for the
Project , in the aggregate principal amount of
approximately $7 , 000 , 000 , which is the arnount presently
estimated to be necessary to pay a portion of total
development and financing costs .
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Exhibit B
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN by the City Council of the
City of Eden Prairie ( the City) , that it will hold a
public hearing at the City Hall in the City of Eden
Prairie , Minnesota , on the day of ,
1982 , at M . to consider a proposed program for a
multifamily development ( the Program) to be financed by
the issuance of revenue bonds or notes of the City
pursuant to Minnesota Statutes , Chapter 462C ( the
Minnesota Housing Bond Act) .
The Program describes a development , to be known
as Baypoint Manor , which will consist generally of
approximately 152 rental units , parking and related
facilities. Revenues of the development will be pledged
to the payment of the bonds or obligations issued to
finance the development ; such obligations will be payable
solely from the revenues of the development and shall not
constitute a debt of the City. The Program describes the
need for thc> development and the method of financing
proposed and states that the development is to be
constructed pursuant to Section 462C . 05 , Subdivision 2 , of
the Municipal Housing Bond Act .
A copy of the Program are on file and available
for inspection in the office of the City Manager at City
Hall .
Dated at Eden Prairie , Minnesota , this day
of , 1982 . By order of the City Council .
John D. Frane
City Clerk
198
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