HomeMy WebLinkAboutResolution - 87-311 - Authorizing Extension of Approval for Prairie Village Apartments Housing Revenue Bonds - RESOLUTION NO. 87 311
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RESOLUTION RELATING TO THE EXPIRATION DATE 07
INDUCEMENT RESOLUTION NO. 87-277 FOR THE ISSUANCE
OF REVENUE BONDS OR NOTES PURSUANT TO MINNESOTA
STATUTES , CHAPTER 462C , FOR THE PURPOSE OF
FINANCING A MULTIFAMILY HOUSING DEVELOPMENT.
BE IT RESOLVED by the City Council of the City of Eden Prairie,
Minnesota ( the City) , as follows :
Section 1 . Recitals
1 . 01 . On December 2 , 1986 , the City adopted Resolution 86-295,
pursuant to which , among other things , it gave its preliminary
approval to the issuance of bonds or notes in the approximate
aggregate face amount of Five Million Seven Hundred Fifty Thousand
Dollars ( $5 , 750 , 000 ) ( the Bonds ) , to finance a portion of the costs of
the Prairie Village Apartments Project ( the Project ) , subject to the
City and Prairie Village Limited Partnership ( the Original Developer)
agreeing to mutually acceptable terms and conditions of a loan
agreement by December 2 , 1987 .
1 . 02 . A Certificate of Allocation for the Project was granted by
' the Minnesota Department of Energy and Economic Development on
December 22 , 1986 . The expiration date of such allocation is
December 2 , 1987 . A federal volume allocation carryf-orward was filed
on December 29 , 1986 .
1 . 03 . On October 6 , 1987 , the City adopted Resolution No. 87-277
(the Inducement Resolution ) pursuant to which , among other things , it
approved the conveyance of the Project by the Original Developer to a
limited partnership to be formed , whose general partners will be
Wayne C. Chaney, J. Peter Jungbacker, Century Capital Group , Ltd. , and
RRM , Incorporated (collectively referred to as Developer) .
1 . 04 . The Inducement Resolution provides that all commitments of
the City expressed therein are subject to the condition that by
December 2 , 1987 , the City and the Developer shall have agreed to
mutually acceptable terms and conditions of the Loan Agreement
pursuant to which the Developer will agree to pay to the City
principal , premium, if any, and interest on the Bonds , and of the
other instruments and proceedings relating to the Bonds and their
issuance and sale . If the events set forth therein do not take place
within the time set forth, or any extension thereof , and the Bonds are
not sold within such time , the Inducement Resolution will expire and
be of no further effect .
1 . 05 . The Developer and representatives of the Developer have
advised the City that, due to current economic conditions , the Bonds
could not be sold at interest rates which would permit the Project to
be economically feasible at this time. The Developer and its
representatives have further advised the City they believe that , if
the Inducement Resolution expiration date is extended , Bonds could be
sold during such extension period at rates that would make the Project
economically feasible.
1 . 06 . The Developer has requested that the City approve the
extension of the expiration date of the Inducement Resolution to
December 2 , 1988 , and that all other terms and conditions of the
Inducement Resolution remain the same.
1 . 07 . Representatives of the Developer have also advised the
City that the Minnesota Department of Energy and Economic Development
will extend the expiration date of the Certificate of Allocatior. to
December 2 , 1988 , upon receipt of an opinion of Bond Counsel that such
an extension will not violate the carryforward provisions of Internal
Revenue Code of 1986 and upon receipt of a copy of a resolution
extending the expiration date of the Inducement Resolution.
Section 2. Approval and Authorization
2 . 01 . It is hereby found and determined , based upon the
information presented to this Council by the Developer and its
representatives , that it would be in the best interests of the City to
extend the expiration date of the Inducement Resolution to December 2 ,
1988. Accordingly, all commitments of the City expressed in
Resolution 87-277 are subject to the condition that , by December 2 ,
1988 , the City and the Developer shall have agreed to mutually
acceptable terms and conditions of the Loan Agreement pursuant to
which the Developer will agree to pay to the City principal_ , premium,
if any, and interest on the Bonds , and of the other instruments and
proceedings relating to the Bonds and their issuance and sale. If the
events set forth in the Inducement Resolution do not take place on or
before December 2 , 1988 , or any extension thereof , and the Bonds are
not sold within such time , Resolution No. 87-277 shall. expire and be
,of no further effect.
2 . 02. The Mayor and other officers , employees, and agents of the
City , including Bond Counsel , are hereby authorized to notify the
Minnesota Department of Energy and Economic Development of the
extension of the expiration date of the Inducement Resolution to
December 2 , 1988 , and to request an extension of the expiration date
of the Certificate of Allocation for the. Project to December 2 , 1988.
Adopted by the City Council of the City of Eden Prairie,
Minnesota , this 17 th day of November, 1987 .
ayor
ATTEST :
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