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HomeMy WebLinkAboutResolution - 84-225 - Preliminary Approval of Housing Revenue Bonds Eames Apartments - $6,000,000 - 09/04/1984 Member Paul Redpath ' introduced the following resolution and moved its adoption : i RESOLUTION NO . RESOLUTION ADOPTING A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A DEVELOPMENT AND ITS FINANCING , UNDER MI NNESOTA STATUTES , CHAPTER 4 62C AND AUTHORIZING SUBMISSION OF THE PROGRAM TO THE MINNESOTA HOUSING FINANCE AGENCY FOR REVIEW AND APPROVAL BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota (the Munic:ipal. it, as follows: SECTION 1 Recitals and Findings 1 . 1 . By the provisions of the Act , the City is authorized to plan , administer , issue and sell revenue bonds or obligations to make or purchase loads 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 . 2 . The City has developed a housing plan and, after holding a public hearing thereon after notice published at least thirty days prior thereto , has adopted the housing plan an:a submitted it for review to the Metropolitan Council and has received its comments . #+_ 1 . 3 . The Act provides that the City may plan, ad- minister 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 ( the Agency ) , as provided by Section 462C . 01 of the Act, on the basis of the considerations stated in Section 4621C . 04 of the Act . 1 . 4 . This Council has received a proposal that the Municipality finance a portion or all of the cost of a proposed multifamily housing development under Minnesota Statutes , Chapter 462C ( the Act ) , consisting of the acquisition of land and the construction and equipping thereon of an apartment building containing apprcximately 108 rental housing units together with parking and other functionally related and subordi- nate facilities ( the Development ) , to be located in the Munici- pality on the north side of Valley View Drive , between Edenvale Boulevard and Mitchell Street, adjacent to the Edenvale Golf Course . The developer and owner of the Development will be Lames Apartments Limited Partnership , a Minnesota limited partnership ( the Developer ) . 1. . 5 . The City has caused to be prepared a program with respect to the Development and its financing (the Program) . At a public hearing , duly noticed and held on August 28 , 1984 , in accordance with the Act and Section 103 (k ) of the Internal Revenue Code of 1954 , as amended, on the proposal to undertake the Program and finance the Development , all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake the Program and finance the Development, and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing . 1 . 6. The Developer has requested that the City issue its revenue bonds in one or more series pursuant to the authority of the Act in an aggregate principal amount not to exceed $6 , 000 , 000 , to finance all or a portion of the costs of the Development , and to make the proceeds of the bonds available to the Developer for the acquisition , construction and equipping of the Development , subject to agreement by the Developer to pay promptly the principal of and interest on the bonds . 1 . 7. The City has been advised by the Developer that conventional commercial financing is available to pay the capital costs of the Development 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 Development would be significantly affected, but with the aid of municipal financing the Development can be constructed as designed and its operation can be made more economically feasible . 1 . 8. This Council has been advised by representatives of the Developer and Piper , Jaffray & Hopwood Incorporated, of Minneapolis , Minnesota, that on the basis of information available to them and their discussions with the Developer and potential purchasers of tax-exempt bonds , the Bonds could be sold at favorable rates and terms to finance the Project . 1 . 9 . The full faith and credit of the City will. not be pledged to or responsible for the payment of the principal of , or premium or interest on the bonds . SECTION 2 2 . 1. On the basis of the information given the City to date , it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the .'act to finance the Develo,)a;ent in the maximum aggregate principal amount of $6iOCC . CGC . 2 . 2 . it is determined to proceed with the Development { and its financing and this Council hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Development . Notwithstanding the foregoing , however , the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its City Council to issue or to cause the issuance of such revenue bonds . 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 parties to the transaction be unable to reach agreement as to the structuring of the financing or as to the terms and conditions of any of the documents required for the transaction . All details of such revenue bond issue and the provisions for payment thereof shall be subject to review and approval of the Program by the Agency and may be subject to such further conditions as the City may specify . 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 , avid shall riot constitute a debt of the City within the meaning of any con- stitutional or statutory limitation . The bonds must be issued, delivered and paid for within 12 months of the date of this resolution , unless such expiration date is extended by resolution of this Council . 2 . 3 . The Program is hereby approved, and in accordance with Section 462C . 04 , Subdivision 2 of the Act, the City Manager and City Clerk are hereby authorized and directed to cause the Program to be submitted to the Agency for review and approval . The City Manager , City Clerk , City Attorney and other officers , employees and agents of the Municipality are hereby authorized and directed to provide the Agency with any preliminary information needed for this purpose. 2 . 4 . 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 Agency may exercise under Chapter 462A, Minnesota Statutes , without limitation under the provisions of Chapter 475 , Minnesota Statutes . 2 . 5 . The Developer has agreed and it is hereby determined that any and all direct and indirect costs incurred ' by the City in connection with the Program and the Development , whether or not the Development is carried to completion , whether of not the Program is approved by the Agency , and whether or not the City by resolution authorizes the issuance of the bonds , will be paid by the Developer upon request . Passed and adopted by the City Council of the City of Eden Prairie this 4th day of ''Set,tter!ber, 1984 Mayor Attest : tir-L- ity Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Anderson , and upon vote being taken thereon , the following voted in favor thereof : r Richard Anderson, Paul Redpath, George Tangen , and Mayor Wolfgang Penzel and the following voted against the same : George Bentley whereupon the resolution was declared duly passed and adopted and was signed by the Mayor and attested by the City Clerk _ RESOLUTION NO . RESOLUTION ADOPTING A PROGRAM, AND GIVING PRELIMINARY APPROVAL TO A DEVELOPMENT AND ITS FINANCING , UNDER 14INNESO`I'A STATUTES , CHAPTER 462C AND AUTHORIZING SUBMISSION OF THE PROGRAM TO THE MINNESOTA HOUSING FINANCE AGENCY FOR REVIEW AND APPROVAL BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota (the Municipality ) , as follows : SECTION 1. Recitals and Findings 1 . 1 . By the provisions of 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 . 2 . The City has developed a housing plan and, after holding a public hearing thereon after notice published at least thirr_y days prior thereto , has adopted the housing plan and submitted it for review to the Metropolitan Council and has received its comments . l 1 . 3 . The Act provides that the City may plan , ad- minister 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 ( the 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 . 4 . This Council has received a proposal that the Municipality finance a portion or all of the cost of a proposed multifamily housing development under Minnesota Statutes , Chapter 462C ( the Act ) , consisting of the acquisition of land and the construction and equipping thereon of an apartment building containing approximately 108 rental housing units together with parking and other functionally related and subordi- nate facilities ( the Development ) , to be located in the Munici- pality on the north side of Valley View Drive , between Edenvale Boulevard and Mitchell Street, adjacent to the Edenvale Golf Course . The developer and owner of the Development will be Eames Apartments Limited Partnership, a Minnesota limited partnership ( the Developer ) . r 1 . 5. The City has caused to be prepared a program with respect to the Development and its financing ( the Program) . At a public hearing , duly noticed and held on August 28 , 1984 , in accordance with the Act and Section 103( k ) of the Internal Revenue Code of 1954 , as amended, on the proposal to undertake the Program and finance the Development , all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake the Program and finance the Development , and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing . 1 . 6. The Developer has requested that the City issue its revenue bonds in one or more series -oursuant to the authority of the Act. in an aggregate principal amount not to exceed $6 , 000 , 000 , to finance all or a portion of the costs of the Development , and to make the proceeds of the bonds available to the Developer For the acquisition , construction and equipping of the Development , subject to agreement by the Developer to pay promptly the principal of and interest on the bonds . 1 . 7 . The City has been advised by the Developer that conventiorial commercial financing is available to pay the capital costs of the Development only on a limited basis r and at such high costs of borrowing that the scope of the 9 Project and the economic feasibility of operating the Development would be significantly affected, but with the aid of municipal financing the Development can be constructed as designed and its operation can be made more economically feasible . 1 . 8. This Council has been advised by representatives of the Developer and Piper, Jaffray & Hopwood Incorporated, of Minneapolis , Minnesota , that on the basis of information available to them and their discussions with the Developer and potential purchasers of tax-exempt bonds , the Bonds could be sold at favorable rates and terms to finance the Project . 1 . 9 . The full faith and credit of the City will not be pledged to or responsible for the payment of the principal of , or premium or interest on the bonds . SECTION 2 2 . 1 . On the basis of the information given the City to date , it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the 1;ct to finance the Develc -)y k;ent in the maximum aggregate principal an„ount of $6 ; OCG , C GC . r� 2 . 2 . It is determined to proceed with the Development and its financing and this Council hereby declares its present intent to have the City issue its revenue bonds under the Act to f inance the Development . Notwithstanding the foregoing , however , the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its City Council to issue or to cause the issuance of such revenue bonds . All details of such revenue bond issue and the provisions for payment thereof shall be subject to review and approval. of the Program by the Agency and may be subject to such further conditions as the City may specify . 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 . 2 . 3 . The Program is hereby approved, and in accordance with Section 462C. 04 , Subdivision 2 of the Act , the City Manager and City Clerk are hereby authorized and directed to cause the Program to be submitted to the Agency for review and approval . The City Manager , City Clerk, City Attorney and other officers , employees and agents of the Municipality are hereby authorized and directed to provide the Agency with any preliminary information needed for this purpose . 2 . 4 . 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 Agency may exercise under Chapter 462A, Minnesota Statutes , without limitation under the provisions of Chapter 475 , Minnesota Statutes . 2 . 5 . The Developer has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with the Program and the Development , whether or not the Development is carried to completion , whether or not the Program is approved by the Agency, and whether or not -the City by resolution authorizes the issuance of the bonds, will be paid by the Developer upon request . Passed and adopted by the City Council of the City of Eden Prairie this 28th day of August , 1984 . Mayor f Attest : ity Clerk /Resol ution No. 84-225 was moved by Councilman Paul Redpath . The motion for the adoption of the foregoing resolution was duly seconded by Member Richard Anderson , and upon vote being taken thereon, the following voted in favor thereof : Richard Anderson, Paul Redpath, George Tangen and Mayor Wolfgang Penzel and the following voted against the same : George Bentley whereupon the resolution was declared duly passed and adopted and was signed by the Mayor and attested by the City Clerk . City of Eden Prairie , Minnesota PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT UNDER MINNESOTA STATUTES, CHAPTER 462C ( Eames Apartments Limited Partnership Project 1 . Eames Apartments Limited Partnership , a Minnesota limited partnership to be formed with David Ames and Tri-State Development Corp . No . 2 as its general partners and David Ames as its initial limited partner ( the "Developer" ) intends to acquire approximately 6 . 75 acres of vacant land in the City of Eden Prairie, Minnesota ( the "City " ) and construct thereon a multifamily residential rental facility to be occupied in part by persons and families of low and moderate income . The site is located on the north side of Valley View Road between Mitchell Street and Edenvale Boulevard, and borders the Edenvale Golf. Course . A map of the site and legal description of the property are attached to this Program as Exhibits A and B, respectively . The development will contain approximately 108 housing units , at least 22 of which ( 20% ) will be rented, or held for rental to , persons of " low and moderate income , " under §103 (b ) ( 4 ) ( A ) of the Internal Revenue Code of 1954 , as amended ( the "Code " ) and the Regulations thereunder . The development will contain approximately 40 one-bedroom units and 68 two-bedroom units . :3 2 . Representatives of the Developer have requested that the City issue its housing revenue bonds under the Act in an aggre- gate principal amount not to exceed $6 , 000 , 000 to finance the acquisition of the site and the construction and equipping of the development and facilities functionally subordinate and related to the development , such as parking , community room and exercise area . 3 . The City ' s Housing Plan , as amended, serves as a basis for the City ' s goal of providing a variety of housing stock throughout the City , for persons resident of the City , including persons of low and moderate income . The development to be financed by the Program will assist the City in certain problems addressed in the Housing Plan , including ( a ) increasing available housing stock , ( b ) providing decent , sanitary and affordable housing for persons of low and moderate income and their families , [ Specify others ] . 3 . The development will be a "multifamily housing develop- ment " within the meaning of Subd . 5 of §462C . 02 of the Act, under- taken pursuant to Subd . 2 of §462C . 05 of the Act. The income limitations set forth in Subd . 2 of §462C . 05 of the Act will apply to this development . In addition , as discussed in paragraph 1 of this Program, at least 20% of the units will be rented or available for rental to persons of low and moderate income ; that is , witri incomes not greater than 80 % of the median family income as esti.mated by the United States department of housing and urban development for the statistical area in which the City is located, currentiv $26 , 800 . 4 . To f i_nance the development. , the Citv intends to issue its housing revenue bonds pursuant to the Act , in an aggregate principal amount of $6 , 000 , 000 (the Bonds ) . The City will lend the proceeds of the Bonds to the Developer pursuant to a revenue agreement in which the Developer agrees to make loan repayments sufficient to repay the Bonds . The Bonds will be a limited obli- gation of the City , payable solely from revenues derived from the revenue agreement and pi.edged to the payment of the Bonds .