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HomeMy WebLinkAboutResolution - 85-215 - Preliminary Approval Housing Revenue Bonds - The Park at City West - $17,500,000 - 09/17/1985 RESOLUTION NO. A RESOLUTION ADOPTING A PROGRAM AND GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING, UNDER MINNESOTA STATUTES , CHAPTER 462C AND AUTHORIZING SUBMISSION OF THE PROGRAM TO THE MINNESOTA HOUSING FINANCE AGENCY FOR REVIEW WHEREAS , the City of Eden Prairie, Minnesota ( the "City" ) is authorized , pursuant to Minnesota Statutes , Chapter 462C ( the "Housing Act " ) to develop and administer multifamily housing programs pursuant to a Housing Plan , which may be financed by the issuance of revenue bonds of the City; and WHEREAS , the City has adopted the City of Eden Prairie Housing Plan ( the "Housing Plan" ) pursuant to and in confor- mance with the provisions of the Housing Act and has held a public hearing thereon , after at least 30 days ' published notice thereof , and after review and comment by the Metro- politan Council thereon ; and WHEREAS , the City Council ( the "Council" ) has determined that it is in the best interests of the City and in further- ance of the City ' s goals established in the Housing Plan that the City approve and adopt a multifamily housing reve- nue bond program entitled "Program for Construction of a Multifamily Housing Development - Park at City West Limited Partnership Project " ( the "Program" ) ; and WHEREAS , under the Program, the City will issue its revenue bonds , in an amount of up to $17 , 500 , 000 , to finance the acquisition , construction and installation of an approx- imately two hundred eighty-eight ( 288 ) unit multifamily rental housing development ( the "Project" ) together with appropriate Bond reserves and issuance costs , to be located at City West Parkway development , east of Shady Oak Lane by The Park at City West Limited Partnership, a Minnesota or Texas limited partnership to be formed ( the "Developer " ) ; and WHEREAS , the Project will be reserved for rental in part by persons of low and moderate income , with at least 20 percent of the units held open 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 for the Minneapolis/St . Paul Standard Metropolitan Statistical Area ; and r WHEREAS , the Program is in conformance with the provi- sions of the Housing Act ; and WHEREAS , the City has held a public hearing on the Pro- gram on September 17 , 1955 , after at least 15 days ' pub- lished notice thereof ; and WHEREAS , the Council and the staff of the City has re- viewed the Program and believes that the Program will in- crease the supply in the City of decent , safe and sanitary residential rental dwellings and that the Program is in furtherance of the housing policies of the City; and WHEREAS , neither the City nor the State of Minnesota shall be liable on the Bonds , and the Bonds shall not be a debt of the City within the meaning of any state constitu- tional provision or statutory limitation , and will not con- stitute or give rise to a charge against the general credit or taxing power of the City or a pecuniary liability of the City , nor shall the Bonds be payable out of any funds or properties other than those provided as security therefore ; NOW, THEREFORE , BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota : Section 1 . The Program , attached hereto as Exhibit A, is hereby approved and adopted by the City. Section 2 . The City gives it preliminary approval to the issuance of its Multi-family Housing Revenue Bonds ( Park at City West Limited Partnership Project ) in an aggregate principal amount of up to $17 , 500 , 000 to provide financing for the acquisition , construction and installation of the Project , together with adequate Bond reserves and issuance costs . 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 Council to issue or cause the issuance of such revenue bonds . The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds , or issue the Bonds in an amount less than the amount referred to in this Section , should the City at any time prior to issuance thereof determine that it is in the best interests of the City not to issue the Bonds , or to issue the Bonds in an amount less than the amount referred to in this Section , or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the docu- ments required for the transaction . Section 3 . The staff of the City is directed to take all actions necessary for review and comment on the amend- ; 2 _ went to the Housing Plan by the Metropolitan Council and review of the Program by the Minnesota Housing Finance Agency pursuant to the requirements of the Act . Section 4 . The staff of the City is hereby authorized and directed to take all steps necessary and desirable to proceed to develop the Program and the financing therefor , and to prepare for implementation of the Program at the earliest possible date , provided , however , that no bonds shall be issued pursuant to the Program until the Minnesota Housing Finance Agency shall have had an opportunity to review the Program in accordance with the Housing Act . Section 5 . The Developer has agreed and it is hereby determined that any and all direct and indirect costs in- curred by the City in connection with the Program and the Project , whether or not the Project is carried to comple- tion , whether or not the Program is accepted 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 . Section 6 . All commitments of the City expressed herein are subject to the condition that by September 17 , 1986 the City and the Developer shall have agreed to mutually accept- able terms and conditions of the Revenue Agreement , the Bonds and of 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 APPROVED this 17th day of September , 1985 . Mayor ATTEST: i i W14C1erk 3 -