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HomeMy WebLinkAboutResolution - 85-265 - Preliminary Approval Housing Revenue Bonds - Preserve Place - $4,235,000 - 11/19/1985 Councilmember Bentley offered the following Resolution and moved its adoption , which motion was seconded by Councilmember Redpath RESOLUTION NO . 85-265 RESOLUTION GIVING PRELIMINARY APPROVAL TO A MULTIFAMILY HOUSING DEVELOPMENT REVENUE BOND PROJECT UNDER MI NNESOTA STATUTES , CHAPTER 462C WHEREAS , the City Council ( the "Council" ) of the City of Eden Prairie, Minnesota ( the "City" ) has adopted a Housing Plan for the City in accordance with the Municipal Housing Programs Act , Chapter 462C of the Minnesota Statutes (the "Act" ) ; and WHEREAS , the Council has received a proposal from Preserve Place Apartments Limited Partnership, a Minnesota limited partnership to be formed ( the "Applicant" ) , that the City issue its bonds or obligations in an approximate face amount not to exceed $4 , 235 , 000 ( the "Bonds" ) under the Act to finance a proposed project that will consist of the acquisition of land in the northwest quadrant of the intersection of Anderson Lakes Parkway and Basswood Road in the City, and the construction and equipping thereon of up to severity-seven ( 77 ) rental apartment units ( the " Project" ) ; and i WHEREAS , the Project , as proposed, will provide housing within the City for families and individuals of low and moderate income in furtherance of the objectives of the Act and the Housing Plan of the City; and WHEREAS , there was published in the Eden Prairie News and in the Minneapolis Star & Tribune on October 30 , 1985 and November 1 , 1985 , respectively, a notice of public hearing on the proposed Project , and that such duly noticed public hearing was properly held before the Council on November 19 , 1985 , and at which public hearing all persons who appeared were given an opportunity to express their views with respect to the proposal to undertake and finance the Project ; NOW, THEREFORE, BE IT RESOLVED : 1 . On the basis of the public hearing and on the basis of such facts and information as the Council has received and deems relevant , the Council finds , determines and declares that it appears to be in the best interest of the City to issue its Bonds , either by private placement or by public offering, under the Act to finance the Project in an amount not to exceed $ 4 , 235 , 000. t 2 . The Project is 'hereby given preliminary approval by the City Council and the issuance of Bonds for the purpose of financing the development costs of the Project is hereby approved , subject to final adoption of the Housing Plan and approval of this program by the Minnesota Housing Finance Agency , and to mutual agreement of the Council , the Applicant , and the initial purchasers of the Bonds as to the details of the Bonds and provisions for their payment . In all events , it is understood, however , that the Bonds of the City shall not constitute a charge , .lien , or encumbrance , legal or equitable , upon any property of the City except the Project and each Bond , when, as , and if issued , shall recite in substance that the Bond, including interest thereon , is payable solely from the revenues received from the Project and property pledged to the payment thereof , and shhall not constitute a debt of the City . 3 . The Mayor is hereby authorized and directed to submit the program proposal for the Project to the Minnesota Housing Finance Agency for its review and requesting its approval . The Mayor , City Clerk, City Attorney and other officers , employees , and agents of the City are hereby authorized and directed to provide the Minnesota Housing Finance Agency with any preliminary information it may need for this purpose , and the City Attorney is also authorized , in cooperation with Oppenheimer Wolff Foster Shepard and Donnelly, as bond counsel , to initiate preparation of such documents as may be appropriate to the Project in order that the Project may be carried forward expeditiously. 4 . The Applicant 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 Minnesota Housing Finance Agency; whether or not the Project is carried to completion ; and whether or not the Bonds or operative instruments are executed . The applicant has agreed to pay to the City a fee equal to one-eighth ( 1/8 ) of one percent ( 1% ) of the outstanding unpaid principal balance of the Bonds , as of the end of each twelve ( 12 ) calendar month period following the issuance of the Bonds . 5 . All commitments of the City expressed herein are subject to the condition that by November 19 , 1986 the City and the Applicant shall have agreed to mutually acceptable terms and conditions of a revenue 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 . 6 . The adoption of this Resolution does not constitute a guarantee or a firm commitment that the City will issue the 2 Bonds as requested by the Applicant . 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 paragraph 1 hereof , should the City at any time prior to issuance thereof determine that it is in the best interests of th:� City not to issue the Bonds , or to issue the Bonds in an amount less than the amount referred to in paragraph 1 hereof , 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 . 7 . The publication of the notice of public hearing referred to above is hereby, in all respects , ratified and affirmed by the Council . Adopted by the City Council this 19th day of November, 1985 . Mayor ' t 1 Attest : C Lt5F Clerk [ SEAL] c Upon call of the roll , the vote on said motion was as follows : Councilmembers : In Favor Opposed Absent Not Voting 1 . Gary Peterson 2 . Paul Redpath 3 . Richard Anderson 4 . George Bentley ✓ 5 . Patricia Pidcock Approved as to form: City Attorney Dated : November , 1985 3