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HomeMy WebLinkAboutResolution - 84-178 - Adopting Housing Bond Program for Edenvale II - 07/17/1984 CITY OF EDEN PRAIRIE RESOLUTION NO. y 1 ,7 ADOPTING A HOUSING BOND PROGRAM FOR THE ISSUANCE OF MULTIFAMILY MORTGAGE REVENUE BONDS AND AUTHORIZING SUBMISSION OF SAME TO THE MINNESOTA HOUSING FINANCE AGENCY. WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C (the "Act"), the City of Eden Prairie (the "City") is authorized to adopt a housing plan and carry out programs for the financing of multifamily housing which is affordable to persons of low and moderate income; and WHEREAS, the Act requires adoption of the housing plan after a public hearing held thereon after publication of notice in a newspaper of general circulation in the City at least thirty days in advance of the hearing; and WHEREAS, the City held a public hearing on the City's Housing Plan (the "Plan") after at least thirty (30) day' published notice on February 2, 1982, and by the passage of Resolution No. 82-27 (the "Plan Resolution") adopted the Plan; and WHEREAS, in accordance with its requirements, the Plan provides for programs for the issuance of bonds to finance multifamily housing development which are affordable to persons and families of low and moderate income and are consistent with the goals, conditions and requirements of the Plan; and WHEREAS, the Act requires adoption of a program after a public hearing held thereon after publication of notice in a newspaper of general circulation in the City at least fifteen days in advance of the hearing; and WHEREAS, the City of Eden Prairie (the "City") has on this date conducted a public hearing on a housing bond program (the "Program"), after publication of notice as required by the Act; and WHEREAS, the Program provides for the issuance of up to $2,750,000 of the City's multifamily housing revenue bonds to finance the acquisition of land and construction of an approximately 70-unit rental housing development to be located Northeast of the intersection of Mitchell Road and Valley View Road, to the East of the Edenvale Apartments, in the City and owned and operated by Eden Investments Partnership (the "Developer"); and WHEREAS, the Act further requires submission of the Program to the Minnesota Housing Finance Agency (the "MHFA") for its approval; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie: 1. That the Program for the issuance of up to $2,750,000 of the City's multifamily housing revenue bonds is hereby in all respects adopted. J 2. That the City Manager is hereby authorized to submit the Program to f the MHFA, and to do all other things and take all other actions as may be necessary or appropriate to carry out the Program in accordance with the Act and any other applicable laws and regulations. 3. 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 project is approved by the MHFA; whether or not the project is carried to completion; and whether or not the bonds or operative instruments are executed. 4. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the bond as requested by the Developer. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the bond should the City at any time prior to the issuance thereof deter.m ine that it is in the bes t interes t of the C ity not to issue the bond or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 5. 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 loan agreement, the bonds 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. ADOPTED: '; I , 1984 ATTEST: / Mayor City Clerk -2- 1984 PROGRAM FOR THE CON(STR.UCTION OF A. MULTIFAMILY HOUSING DEVELOPMENT Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Eden Prairie (the "City") has been 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 by revenue bonds issued by the City. The City has received a proposal from Eden Investments Partnership, a Minnesota general partnership (referred to as the "Developer") that, pursuant to the authority found in the Act, the City approve a program providing for the construction of approximately seventy (70) units of rental housing ("Housing Units") located Northeast of the intersection of Mitchell Road and Valley View Road, to the East of the Ederivale Apartments, in the City (the "Project"). The construction of -the Project is to be funded through the issuance of up to $2,750,000 in revenue bonds issued by the City (the "Bonds"). It is proposed that the Bonds be sold privately to an institutional investor. Following construction of the Project, the Developer, or a related entity, will own and operate the Proje^t as a multifamily residential rental project. The Project will contain seventeen (17) one-bedroom apartments and fifty-three (53) two-bedroom apartments, of which twenty percent (20%) of the units will be specifically reserved for tenants whose incomes are not greater than eighty percent (80%) of the area median income. It is estimated that rents for the Housing Units will be $535-$610 per month. 1