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HomeMy WebLinkAboutResolution - 84-26 - Reaffirming Bonds - Baypoint Manor - 01/26/1984 Member introduced the following resolution and moved its adoption : RESOLUTION NO. RESOLUTION RELATING TO THE ISSUANCE OF REVENUE BONDS PURSUANT TO CHAPTER 462C, MINNESOTA STATUTES; ADOPTING AN AMENDED MULTIFAMILY 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 4 bonds or obligations to finance 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 Metropolitan Council . 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 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 . On July 6 , 1982 this Council adopted Resolution. No . giving preliminary approval to and calling for a public hearing on a project on behalf of Messrs . Walter D . Doelz and James E . Gratz , general partners in G & D Enterprises , a Minnesota partnership, consisting of the acquisition of certain land located at 11111 Neill Lake Road in the City and the construction and equipment thereon of a 152-unit rental apartment building together with parking and related facilities (the Project) . By this resolution, the City approved the issuance of its revenue bonds in an aggregate total amount not to exceed $7 , 000 , 000 (the Bonds ) to finance a portion of the cost of the Project . 1 . 06 . On October 5 , 1982 , after thirty days published notice, a public hearing was held and this Council passed Resolution No . adopting a program for a multifamily housing development pursuant to the requirements of Subdivision 5 of Section 462C . 05 of the Act (the Program) and authorized submittal of the Program accompanied by the Housing Plan, to the Metropolitan Council for review and comment to Minnesota Housing Finance Agency for review and approval pursuant to Subdivisions 1 and 2 of Section 462C . 04 of the Act . 1 . 07 . On April 28 , 1983 , the Program was found by the Metropolitan Council to be consistent with Metropolitan Council ' s Housing Review Guidelines and other applicable chapters of the Metropolitan Development Guide . 1 . 08 . The City was advised that Baypoirt Manor Limited Partnership, a Minnesota partnership ( the Borrower ) , whose general partner is Jim W . Miller Construction, Incorporated , has replaced G & D Enterprises in the Project . The Borrower has requested the Council reaffirm its Resolution Nos . _ and amending them to reflect this change , and has requested the Council amend the Program to reflect this change . 1 . 09 . Under Section 103 ( k) of the Internal Revenue Code of 1954 , interest on revenue bonds is exempt from federal income tax only if a public hearing is held prior to the issuance thereof . New regulations filed May 6 , 1983 under Section 103 (k ) require that the notice of public hearing set forth the name of the borrower , the nature of the project, the street address of the project and the maximum principal amount of the bonds ; it must also state that written comments may be submitted on the proposed bond issue . In order to comply with new regulations under Section 103 (k) of the Internal Revenue Code of 1954 , the City held. a second public hearing on December 6 , 1983 . Notice of said hearing stated all of the elements now required by the Internal Revenue Service . -2- 1 . 10 . Resolution No . , adopted October 5 , 1982 , required the City and the Borrower agree to mutually acceptable terms and conditions of the Bonds , the operative documents and other instruments and proceedings relating to the Bonds and their issuance and sale within twelve months . The Borrower has requested the commitments of the City be extended an additional twelve months . Section 2 . Approvals , Authorization and Hearing . 2 . 01 . Preliminary approval of the Project , as amended to identify the Borrower , and the issuance of the Bonds for such purpose is hereby ratified and reaffirmed by the City . The Bonds shall not be issued until the amended Program ( attached hereto as Exhibit A) has been reviewed and approved as provided by the Act and until the City, the Borrower 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 Project 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 . 02 . The Mayor , City Manager , City Finance Director/Clerk and other officers and employees of the City are hereby authorized to prepare and execute the required certifications and submit the amended Program for review and approval in accordance with Subdivision 5 of Section 462C . 05 and Subdivision 2 of Section 462 . 04 of the Act . 2 . 03 . 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 . 04 . 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 Program is approved by the Minnesota Housing Finance Agency, whether_ or -3- not the Project is carried to completion and whether or not the Bonds and all operative instruments are executed. 2 . 05 . 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 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 Borrower 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 . 06 . 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 Borrower shall have agreed to mutually acceptable terms and conditions of the Bonds , the operative documents and 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 City Count '-1 of the City of Eden Prairie this 24th day of January, 19 mayor Attest : City �i ce Director/Clerk -4- i 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 Finance Director/Clerk . -5- EXHIBIT A AMENDED PROGRAM FOR MULTIFAMILY HOUSING DEVELOPMENT UNDER CHAPTER 462C - BAYPOINT MANOR PROJECT Baypoint Manor Limited Partnership, a Minnesota partnership (the Borrower ) whose general partner is Jim W . Miller Construction , Incorporated, has acquired and intends to exercise an option to purchase certain land located at 11111 Neill 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 throughotit 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 persons and families with adjusted gross income not in excess of the limits set forth in Section 462C . 03 , Subdivision 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 . Pau]. 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 . A-1 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 amount presently estimated to be necessary to pay a portion of total development and financing costs . s l A-2