HomeMy WebLinkAboutResolution - 85-266 - Preliminary Approval Housing Revenue Bonds - Eden Pointe - $7,865,000 - 11/19/1985 Councilmember Bentley offered the following Resolution
and moved its adoption , which motion was seconded by
Councilmember Redpath
RESOLUTION NO . 85-266
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A MULTIFAMILY HOUSING DEVELOPMENT
REVENUE BOND PROJECT UNDER MINNESOTA
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 Eder, Pointe
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
$ 7 , 865 ,000 ( the "Bonds" ) under the Act to finance a proposed
project that will consist of the acquisition of land in the
southeast quadrant of the intersection of Homeward Hills Road and
Pioneer Trail in the City and the construction and equipping
thereon of up to one hundred forty-three ( 143 ) rental apartment
units ( the " Project" ) ; and
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 on October
30 , 1985 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 $7 , 865 , 000 .
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 shall 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 cominitment that the City will issue the
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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 the
City not to issue the Bonds , or to issue the F3onds 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 .
•�'1. /,//' � `..-" � %.� = l_.
Mayor
Attest :
C ' j Clerk
( SEAL ]
Upon call of the roll , the vote on said motion was as follows :
Councilmernbers : In Favor Opposed Absent Not Voting
1 . Gary Peterson ✓
2 . Paul Redpath `�
3 . Richard Anderson V-1
4 . George Bentley ✓
5 . Patricia Pidcock
Approved as to form:
City Attorney
Dated : November , 1985
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