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HomeMy WebLinkAboutResolution - 85-223 - Preliminary Approval Housing Revenue Bonds - Baypoint Manor II - $7,300,000 - 10/01/1985 J / RESOLUTION NO. .�. A RESOLUTION AMENDING A PROGRAM AND RATIFYING A RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING , UNDER MINNESOTA STATUTES , CHAPTER 462C AND AUTHORIZING SUBMIS- SION 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 Comprehensive Guide Plan and Housing Assistance Plan ( the "Housing Plan" ) pursuant to and in conformance 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 Metropolitan Council thereon ; and i 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 amend the Housing Plan , by approving and adopting a multifamily housing revenue bond program entitled "Program for Construction of a Multifamily Housing Develop- ment - Bay Point Manor Phase II Limited Partnership Project " ( the "Program" ) ; and WHEREAS , by Resolution No . adopted , 1985 , after a public hearing conducted on that date , the Council gave preliminary approval to a housing program ( the "Pro- gram" ) and to the issuance of the City ' s revenue bonds , in an amount of up to $7 , 300 , 000 , to finance the acquisition , construction and installation of an approximately one hun- dred and twenty-four ( 124 ) unit multifamily rental housing development ( the "Project " ) together with related issuance costs , to be located on Anderson Lakes Parkway west of the existing Bay Point Manor apartment complex located at 11185 Anderson Lakes Parkway in the City by Bay Point Manor Phase II Limited Partnership, a Minnesota limited partnership to be formed in which Jim W. Miller Construction , Inc . , or its assigns will be a general partner ( the "Developer " ) ; and a' WHEREAS , to account for modifications herein described , the City Council has determined that the Program as ini- tially adopted should be amended and restated , with such initial Program being deleted in its entirety and substi- tuted with the Program attached as Exhibit A hereto . WHEREAS , the Developer has determined to increase the number of rental units in the Project from 124 to approxi- mately 136 . The Project is expected to consist of two buildings , each containing approximately 12 one-bedroom units , 44 two-bedroom units and 12 three-bedroom units . 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 WHEREAS, the remainder of the Project not so reserved will be affordable to persons and families with adjusted gross income not in excess of those limits set forth in Minnesota Statutes , Section 462C . 03 subdivision 3 only to the extent determined necessary to further the policy of economic integration; and { WHEREAS , the Program, as amended , is in conformance with the provisions of the Housing Act ; and WHEREAS , the City has held a public hearing on the amended Program on October 1 , 1985 , after at least 15 days ' published notice thereof and after submission of the Program as amended for review to the Metropolitan Council on or before the publication date of the Notice of Public Hearing ; 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 or 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 ; 2 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 as an amendment to and restatement of the Program as initially adopted , with such initial Program being deleted in its entirety . Section 2 . The City ratifies Resolution No . adopted , 1985 giving preliminary approval to the issuance of its Multifamily Housing Revenue Bonds ( Bay Point Manor Phase II Limited Partnership Project ) in an aggregate principal amount of up to $7 , 300 , 000 to provide financing for the acquisition , construction and installation of the Project , together with related issuance costs . Notwith- standing the foregoing , however , the adoption of this resolution shall not be deemed to establish a legal obliga- tion 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 participa- tion 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 3 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 City gives its further approval to the increase in the proposed number of rental units of the Proj- ect from one hundred and twenty-four ( 124 ) , to one hundred and thirty-six ( 136 ) units . Section 4 . The staff of the City has taken all actions necessary for review and comment on the amendment to the Housing Plan by the Metropolitan Council and is directed to take those actions necessary for review of the Program by the Minnesota Housing Finance Agency pursuant to the re- quirements of the Act . Section 5 . 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 - 3 - 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 6 . 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 7 . All commitments of the City expressed herein are subject to the condition that by October 1 , 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 1st day of October , 1985 . % �Maror ATTEST: City C. r. k-Finance Director 4. 4 - EXHIBIT A PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT UNDER CHAPTER 462C BAY POINT MANOR PHASE II LIMITED PARTNERSHIP PROJECT Section 1 . Statutory Authority. 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 tinder the cir- cumstances 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 . Section 2 . The Program. The City has received a pro- posal from Bay Point Manor Phase II Limited Partnership, a Minnesota limited partnership to be formed in which Jim W. Miller Construction , Inc . , or its assigns will be a general partner ( the "Developer " ) that , pursuant to Minnesota Stat- utes , Section 462C . 05 , subdivision 2 , the City approve a program providing for the acquisition of land and construc- tion of approximately one hundred and thirty-six ( 136 ) units of rental housing ( the "Housing Units" ) to be located on Anderson Lakes Parkway west of the existing Bay Point Manor apartment complex located at 11185 Anderson Lakes Parkway in the City . The proposed development is expected to consist of two buildings , each containing 12 one-bedroom units , 44 two-bedroom units and 12 three-bedroom units . Approximate initial rentals for the Housing Units are expected to range from $ 495 to $505 per month for one-bedroom units , $635 to $665 per month for two-bedroom units and $750 to $780 per month for three-bedroom units . Rentals vary depending on the location of the Unit within the building and the number of bathroom facilities within the Unit . It is contemplated that all Housing Units will be in compliance with all appli- cable zoning ordinances and other applicable land use regulations , including any urban renewal plan or development district plan , and including the state building code as set forth under Minnesota Statutes , Section 16 . 83 , et . seq. Section 3 . Income Limits . To the extent necessary to further the policy of economic integration the Housing Units will be designed to be affordable by persons and families with adjusted gross income not in excess of the limits set forth in Minnesota Statutes Section 462C. 03 , subdivision 2 . Twenty percent ( 20% ) of the 136 Housing Units will be ! specifically reserved for tenants whose incomes are not ( greater than eighty percent ( 80% ) of the median family in- come estimated by the United States Department of Housing and Urban Development for the Minneapolis-St . Paul standard metropolitan statistical area . Section 4 . Need for the Program; How the Program Meets the Needs of Low and Moderate Income Families . In estab- lishing this multifamily housing program ( the "Program" ) , the City has considered the goals and information contained in the City ' s Comprehensive Plan adopted on February 2 , 1982 ( the "Housing Plan" ) . The City has housing needs in terms of additional affordable , safe and sanitary housing as re- flected in data available to the City and contained in part in the Plan . Consistent with the local housing needs in this Program and the proposed Project will enable the City to meet its housing goals by ( i ) providing additional affordable housing with rents , amenities , construction and location not otherwise available to the same extent and land use ; and ( ii ) encouraging low income housing throughout the City . The City has further considered other factors such as ( i ) the availability and affordability of other government housing programs ; ( ii ) the availability and affordability of private market financing for the construction of multifamily housing units ; ( iii ) the recent housing trends and future housinq needs of the City; and ( iv) population and unemploy- ment trends and projections of future population trends and future employment needs . Based on a review of the fore- going , the City has concluded that there is a need for the Program to help diversify housing options in the City and to provide affordable housing to complement expanding employ- ment opportunities within the City. The City additionally concludes that the Program is needed to and will further the statewide housing policy of encouraging private industry to assist in providing decent , safe and sanitary rental housing at affordable rentals to ( i ) the handicapped , ( ii ) minori- ties , ( iii ) households headed by women and ( iv) households with low and moderate income . The Program meets the needs low and moderate inc_•ome families by providing a variety of Housing Unit types and designs , some equipped specifically for the handicapped , at reasonable rentals . The Program also is also subject to the requirements of Section 3 hereof . Section 5 . Method of Financing . The City expects to issue $7 , 300 ,000 of its multifamily housing revenue bonds ( the "Bonds " ) for the purpose of providing construction and long-term financing for the Project and related reserve funding and administrative and bond issuance costs . The Bonds will be issued upon such terms and conditions as set forth herein and as may be agreed upon in writing between the City, the original purchaser of the Bonds and the Devel- oper . i - 2 - It is contemplated that the Bonds shall contain a maturity of approximately thirty ( 30 ) years with yearly amortization after the construction period . The Bonds are expected to be issued within twelve ( 12 ) months after adoption of this Program. A private placement of the Bonds is contemplated , but a public offering may be utilized to retain flexibility an('_ to provide for the best means of financing the costs of the Project , provided the Bonds are secured in a manner approved by the City and original pur- chaser ( s ) . Insofar as the City will or may be contracting with underwriters , legal counsel , bo-id counsel , a trustee , and others , all. of whom will be reimbursed from Bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City ' s budget with respect to this Program . The Bonds will not be general obligation bonds of the City , but are expected to be paid from the properties or credit pledged to the payment thereof. It is not contemplated that any additional financing or contributions on the part of the City will be needed for the completion of the Project or for the operation of the Pro- gram. It is expected that the Program can be implemented with- out subjecting some or all of the obligations thereafter to be issued by the Minnesota Housing Finance Agency to federal income tax . Section 6 . Standards and Requirements Relating to Com- pliance with the Act . The following standards and require- ments shall apply with respect to the operation of the Proj- ect by the Developer pursuant to this Program: ( 1 ) Substantially all of the proceeds of the sale of the Bonds will be used to finance the Project , which will provide approximately one hundred and thirty-six ( 136 ) residential Housing Units . The funds will be made available to the Developer pursuant to the terms of the Bond offering , which may include certain covenants to be entered into between the City and the Developer. ( 2 ) The Developer or subsequent owner of the Proj- ect , will not reject an application from a proposed tenant because of race, color , creed , religion , national origin, sex , marital status , age or status with regard to public assistance or disability . ( 3 ) No Housing Unit may be in violation of appli- cable zoning ordinances or other applicable Land use regulations , including any urban renewal plan oa devel- 3 - opment district plan, and including the state building ' code as set forth under Minnesota Statutes , Section 16 . 83 , et seq . ( 4 ) Pursuant to Section 462C . 05 , subdivision 2 of the Act , at least twenty percent ( 20% ) of the Housing Units will be held for occupancy by families or individ- uals with Adjusted Gross Income (as defined in the Act ) not in excess of eighty percent ( 80% ) of the median family income as estimated by the United States Depart- ment of Housing and Urban Development for the Minne- apolis-St . Paul metropolitan area . ( 5 ) The Developer will enter into a Regulatory Agreement with the City to ensure compliance with the Program and that the level of low and moderate income occupancy requirements of the Act , herein specified, will be maintained for the period of time specified by the Act and the Internal Revenue Code , in order to re- tain the tax exempt status of the Bonds . Section 7 . Evidence of Compliance ; Method of Monitoring Implementation . The City may require from the Developer or such other person deemed necessary at or before the issuance of the Bonds , evidence satisfactory to the City of the ability and intention of the Developer to complete the Proj- ect , and evidence satisfactory to the City of compliance with the standards and requirements for the making of the financing established by the City , and in connection there- with, the City or its representatives may inspect the rele- vant books and records of the Developer in order to confirm such ability , intention and compliance . In addition , the City may periodically require certification from either the Developer or such other person deemed necessary concerning compliance with various aspects of this Program. Section 8 . Marketing of Program to Ensure Equal Housing Opportunities . It is expected that the Program will be affirmatively marketed to ensure equal housing opportunities for minority households, households headed by women and handicapped persons . The Developer is additionally expected to use its best efforts to provide an opportunity for minorities and women to participate in the production of the Housing Units contemplated by this Program. Section 9 . Severabili_y. The provisions of this Pro- gram are severable and if any of its provisions , sentences , clauses or paragraphs shall be held unconstitutional , con- trary to statute , exceeding the authority of the City or otherwise illegal or inoperative by any court of competent jurisdiction , the Decision of such court shall not affect or impair any of the remaining provisions . 4 - ,Y Section 10 . Amendment . This Program shall be a com- ponent of and amendment to the Plan as recognized by the Act , The City shall not amend this Program while Bonds are outstanding to the detriment of the holders of such Bonds . 9 - 5 -