Loading...
HomeMy WebLinkAboutResolution - 88-269 - Approving Housing Plan for Elim Shores - Councilmember Pidcock introduced the following Resolution and moved its adoption: RESOLUTION NO . 88-269 APPROVING A HOUSING PLAN FOR ELIN? SHOINES WHEREAS, pursuant to the Minnesota Municipal Housing Act , Minnesota Statutes , Chapter 4 62C (the "Act" ) , a City is authorized by its housing plan to carry out programs for the financing of multifamily housing for rental primarily to elderly and/or handicapped persons as described in Subdivision 4 of Section 462C .05 ; and, WHEREAS, the City Council of the City of Eden Prairie, Minnesota by Resolution 82-27 adopted on February 2 , 1982 , has heretofore approved a comprehensive guide plan and housing assistance plan (the "Housing Plan") following a public hearing required by and otherwise in compliance with the requirements of Section 462C.01 ( a) (b) (c) and Section 462C. 04 , Subd. 1 ; and WHEREAS, the Act (§4 62C . 04 , Subd . 2 ) requires approval of a program after a public hearing held thereon after publication of notice in a newspaper of general circulation in the City at least fifteen days in advance of the hearing; and WHEREAS, the City of Eden Prairie (the "City" ) has on this date conducted a public hearing, after publication of notice as required by the Act, on the proposed Elim Shores Housing Program (the "Program" ) and the proposed issuance of housing revenue bonds to finance a housing development described in said notice ; and WHEREAS , a copy of the Program, as amended hereby, is attached hereto as Exhibit A; and WHEREAS , the Act further requires submission of the Program to the Minnesota Housing Finance Agency (the "MHFA" ) for its approval . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie that: 1 . The Program is hereby amended by revising the definition of "Qualified Project Period" to read as follows : ( 12 ) "Qualified Project Period" for the set aside of 20% of the Housing Units shall mean a period beginning on the later of the first day on which at least 10 percent of the units in the Projects are first occupied or the date of issue of the Bonds for the Project i` and ending on the date which is the earlier of ( i) the date on which all Bonds are redeemed or ( ii) the date which is 28 years after the date on which at least 50 percent of the units in the Project are first occupied, but in no event shall such period be less than 12 years from the date on which at least 50 percent of the units in the Project are first occupied . 2 . The Program is further amended by the addition of the following sentence under Subsection C on Page 4 thereof : "The Company has requested the City to fund an -Lnterest write down program with tax increments from the Project." 3 . The Program (as amended) is hereby in all respects adopted, and it is further found and determined that said Program (as amended) is consistent with the City ' s Housing Plan as presently constituted and approved by the City and the Metropolitan Council . 4 . The City Manager is hereby authorized to submit the Program (as amended) to the MHFA, and to do all other things and take all other actions as may be necessary or appropriate to carry out the Program (as amended) in accordance with the Act and any other applicable laws and regulations . Adopted by the City Council, the City of. Eden Prairie, Minnesota , this 15th day of November, 1988 . Mayor City 1 . V1 The motion for the adoption of the foregoing Resolution was duly seconded by Councilmember Harris _ , and upon vote being taken thereon the following voted in favor thereof: and the following voted against the same: t Whereupon the Resolution was declared duly passed and adopted . EXHIBIT A TO RESOLUTION RELATING TO THE ISSUANCE OF REVENUE BONDS PURSUANT TO CHAPTER 462C, MINNESOTA STATUTES, FOR THE PURPOSE OF FIiJANCING A MULTIFAMILY HOUSING DEVELOPMENT FOR THE ELDERLY; GIVING PRELIMINARY APPROVAL TO THE DEVELOPMENT AND CALLING FOR THE ISSUANCE OF SUCH REVENUE BONDS CITY OF EDEN PRAIRIE PROGRAM FOR THE CONSTRUCTION OF A MULTIFAMILY HOUSING DEVELOPMENT, AS AMENDED ON NOVEMBER 15 , 1988 (SLIM SHORES , INC. PROJECT) Pursuant to Minnesota Statutes , Chapter 462C (the "Act" ) , the City of Eden Prairie, Minnesota (the "City11 ) has been authorized to develop and administer programs of multifamily housing developments under the circumstances 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. The City has received a proposal from Elim Homes , Inc. , a Minnesota nonprofit corporation on behalf of itself and Elim Shores, Inc. , a Minnesota nonprofit corporation (collectively , the "Company" ) that, pursuant to the authority found in the Act, the City approve a program (the "Program" ) for the financing of the acquisition, construction and equipping by the Company of a multifamily rental facility with an approximate total of 64 units for rental primarily to elderly persons together with common recreation and support facilities (the "Project" ) . The Project will be located adjacent to Lake Mitchell near the intersection of Highway 5 and County Road 4 in the City of Eden Prairie . It is estimated that rents for the Housing Units will be between $575 and $1, 250 per month . The apartments will be rented to members of the general public, without regard to race , religion, creed or rational origin. The. Company will not give preference to any particular class or group of persons, other than elderly and Lower Income Tenants (as hereinafter_ defined) . Accessibility to the handicapped will be considered in the construction of the Project . The construction of the Project is to be funded through the issuance of one or more series of up to $4 , 400 , 000 in revenue bonds issued by the City (the "Bonds") . It is proposed that the Bonds be sold publicly through an underwriter. The Bonds will be secured primarily by a revenue agreement with the Company. Following construction of the Project, the Company will own and operate the Project as a multifamily residential rental project primarily for the elderly. At least twenty percent (20%) of the units will be specifically reserved for tenants whose incomes are not greater than eighty percent (80%) of the area median income pursuant to Minnesota Statutes 462C. 05 , Subd. 2 . The use of tax-exempt bonds for the Project will allow approximately 64 more affordable rental units for use by the elderly and/or low and moderate income families and individuals as required by law. The Project will also increase the variety - 1 - of housing types and costs in the City. The Project, by providing alternative housing in which the elderly and/or low and moderate income families and individuals are housed in the same development as others of varied economic means will meet the needs and objectives of the City and the public at the least expense possible. The City, in establishing this Program, has considered the information contained in the Housing Plan, including particularly (i) the availability and affordability of private market financing for the construction of multifamily housing units; (ii) the availability and affordability of other government housing programs ; (iii) an analysis of population, and employment trends and projections of future employment needs ; ( iv) the recent housing trends and future housing needs of the City ; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City . The City, in adopting the Program, has further considered ( i) the amount, timing and sale of Bonds to finance the construction of the Housing Units, to fund the appropriate reserves and to pay the cost of issuance; ( ii) the method of monitoring and implementation of the Program to ensure compliance with the City' s Housing Plan and its objectives; ( iii) the method of administering, servicing and supervising the Program; (iv) the cost to the City, including future administrative expenses ; (v) the restrictions on the multifamily development to be financed under the Program; and (vi) other matters deemed relevant . The City, in adopting the Program, considered the potential financial impact of a bond issuance on affected public agencies . In addition, the City reviewed the method of marketing the Program. Such review included the examination of the equal opportunity for participation by: ( i) minorities ; ( ii) house- holds with incomes at the lower end of the range that can be served by the Program; (iii) households displaced by public or private action; ( iv) families with children; and (v) access- ibility to the handicapped. The Project will be constructed and financed pursuant to Subd . 1 through 4 of Section 462C. 05 of the Act (particularly Subd . 2 thereof) and Section 469 . 175, Subd. 4 . Subsection A. Definitions The following terms used in this Program shall have the following meanings , respectively: ( 1) "Act" shall mean Minnesota Statutes , Section 2 - 462C . 01 , et seq. , as currently in effect and as the same may from t time to time be amended. (2 ) "Adjusted Gross Income" shall mean gross family income less $750 for each adult (maximum of two) and less $500 for each other dependent in the family as provided by and consistent with Section 462C. O2 , Subd . 7 . (3 ) "Bonds" shall mean the revenue bonds to be issued by the City to finance the Program. (4 ) "City" shall mean the City of Eden Prairie , County of Hennepin, State of Minnesota . ( 5) "Company" shall mean El im Homes , Inc . , a Minnesota nonprofit corporation , and/or Elim Shores, Inc . , a Minnesota nonprofit corporation . ( 6) "Housing Plan" shall mean the City of Eden Prairie 462C Housing Plan, adopted on February 2 , 1982 , as amended , setting forth certain information required by the Act . (7) "Housing Unit" shall mean any one of the apartment units located in the Project, occupied by one person or family , and containing complete living facilities. (8) "Laud" shall mean the real property upon which the Project will be situated. ( 9) "Lower-Income Tenants" shall mean individuals who on the date of their initial occupancy of dwelling units in the Projects are individuals of low or moderate income within the meaning of Section 142 (d) of the Internal Revenue Code of 1986 , as amended (the "Code" ) ; without limiting the foregoing, the occupants of a unit shall not be considered to be of low or moderate income if all the occupants are students (as defined in Section 151 (e) (4) of the Code) , no one of whom is entitled to file a joint return under Section 6013 of the Code. ( 10) "Program" shall mean the program for the financing of the Project pursuant to the Act . ( 11) "Project" shall mean the multifamily housing development consisting of approximately 64 Housing Units to be constructed by the Company on the Land. ( 12) "Qualified Project Period" for the set aside of 20 0 of the Housing Units shall mean a period beginning on the .later of the first day on which at least 10 percent of the units in the Projects are first occupied or the date of issue of the Bonds for the Project and ending on the date which is the earlier of ( i) the date on which all Bonds are redeemed or (ii) the date i - 3 ` which is 28 years after the date on which at least 50 percent of the units in the Project are first occupied, but in no event shall such period be less than 12 years from the date on which at least 50 percent of the units in the Project are first occupied. Subsection. B. Program for Financing the Project It is proposed that the City establish this Project to construct 64 Housing Units to be owned by the Company, at the price and upon such other terms and conditions as may be agreed upon in writing between the City and the Company. To do this, the City expects to issue one or more series of Bonds , the proceeds of which will be loaned to the Company for construction and initial financing of the Project . It is expected that a Trustee will be appointed by the City to monitor the construction of the Project and any payments of principal and interest on the Bonds . It is contemplated that the Bonds shall contain a maturity of not more than thirty ( 30) years and will be priced to the market at the time of issuance . It is anticipated that the Bonds will be issued on or about December 1, 1988. The City will hire no additional staff for the administration of the Program. The City intends to select and contract with a trustee experienced in trust matters to administrate the Bonds . Insofar as the City will be contracting with under- writers , the trustee, and others , all of whom will be reimbursed from bond proceeds and revenues generated by the Program, little or no administrative costs will be paid from the City' s budget with respect to this Program. The City will charge an administrative fee of 1/8 of one percent of the outstanding principal amount of bonds annually for administrative costs. The Bonds will not be general obligation bonds of the City, but are expected to be paid from properties pledged to the payment thereof, and out of net revenues of the Project or otherwise by Elim Homes, Inc. Subsection C. Local Contributions to the Program The Company has requested the City to fund an interest write down program with tax increments from the Project. It is not contemplated that any additional financing or contributions will be needed for the completion of the Project, or for the operation of the Program. Subsection D. Standards and Requirements Relating to the Financing of the Project Pursuant to the Program l 4 The following standards and requirements shall apply with respect to the operation of the Project by the Company pursuant to this Program: ( 1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the construction of the Project , which will provide approximately 64 residential units . The funds will be made available to the Company pursuant to the terms of the Bond offering, which may include certain covenants to be entered into between the City and the Company . (2) The Company will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex , marital status or status with regard to public assistance or disability. The Housing Units are intended to be rented primarily to elderly persons . ( 3 ) No Housing Unit may be in violation of applicable zoning ordinances or 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 seg. (4 ) At all times during the Qualified Project Period the Company will allocate (without designation) at least twenty percent (20%) of the dwelling units in the Project for occupancy by Lower. -Income Tenants. (5) The Company has proposed a plan by which it will use its best efforts to see that approximately 70 percent of the Housing Units will be made available to individuals or families whose anticipated annual income is not more than 80 percent of the median income ( adjusted for family size) of the metropolitan area (approximately $24 ,400) , and 20 percent of the Housing Units ( 13 units) are targeted to be set aside for individuals with 50 percent or less of the area median income (adjusted for family size of 1 and 2 ) with the proposed limitation that no more than 40 percent of the latter group ' s income would be spent on rents . To the extent the foregoing describes a program to assist tenants of low to median income above and beyond the requirements of the Art, the Company has stated a good faith intention to implement such a program subject to the condition that the Company has the overriding concerti and intention to operate the Project so that the Bonds are payable solely out of net revenues ( i . e. , the Project is expected to be and remain economically viable and self-supporting) subject only to (i) certain subsidies contemplated by a tax increment interest reduction program being considered by the City of Eden Prairie and ( ii) the proposal that Elim Foundation use its best efforts to subsidize rents in the approximate amount of $50 , 000 per year for certain tenants . ( Subsection E . Evidence of Compliance 5 - The City may require from the Company or such other persons deemed necessary, at or before the issuance of the Bonds , evidence satisfactory to the City of the ability and intention of the Company to complete the Project, and evidence satisfactory to the City of compliance with the standards and requirements for the making of the financing established by the City , as set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Company in order to confirm such ability, intention and compliance . In addition, the City may periodically require certification from either the Company or such other persons deemed necessary, concerning compliance with various aspects of this Program. Subsection F. Issuance of Bonds To finance the Program authorized by this Section, the City may by resolution authorize , issue and sell one or more series of its Revenue Bonds in an aggregate principal amount estimated to be up to $4 , 400, 000 . The Bonds shall be issued pursuant to Section 462C. O7 , Subd. 1 of the Act, and shall be payable primarily from the revenues of the Program authorized by this Section. Subsection G. Severability The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional , contrary 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 . Subsection H. Amendment The City shall not amend this Program while Bonds authorized hereby are outstanding to the detriment of the holders of such Bonds . - 6 - EXHIBIT B 140TICE OF PUBLIC HEARING $4 , 400 , 000 CITY OF EDEN PRAIRIE, MINNESOTA HOUSING REVENUE BONDS (ELIM SHORES , INC. PROJECT) NOTICE IS HEREBY GIVEN that the City Council of the City of Eden Prairie will meet at City Hall , 7600 Executive Drive , Eden Prairie , Minnesota on Tuesday, the 15th day of November, 1988 , at 7 :30 o'clock p.m . , to conduct a public hearing on a proposed program for the acquisition and construction of a Multifamily Housing Development for the Elderly (the Program) to be financed by the issuance of revenue bonds or notes of the City pursuant to Minnesota Statutes Chapter 462C (the Minnesota Municipal Housing Programs Act) in an aggregate principal amount not to exceed $4 , 400 , 000. The Program describes a development, to be owned by Elim Homes , Inc . and/or Elim. Shores , Inc. , both of which are Minnesota nonprofit corporations (the "Company") , which will consist generally of approximately 64 apartment units together with common recreational and support facilities to be constructed at a site adjacent to Lake Mitchell , near the intersection of Highway 5 and County Road 4 in the City . (The street addresses of such building has not been established. ) The Bonds or other obligations issued to finance the development will be payable solely from the revenues pledged to the payment thereof or other security or collateral furnished by or through the Company and in no event shall the bonds constitute a debt of the City . The Program describes the need for the development and the method of financing proposed and states that the development is to be constructed pursuant to Section 462C . 05 , Subd. 4 , of the Minnesota Municipal Housing Programs Act. Copies of the City 's Housing Plan and the Program are on file and available for inspection in the office of the Finance Director at City Hall , 7600 Executive Drive, Eden Prairie, Minnesota , 55344 , during regular business hours (8 : 00 a.m. to 4 : 30 p . m. ) . All persons desiring to appear at the public hearing will be afforded an opportunity to express their views with respect to the proposal to undertake and finance the Program. At such public hearing, or at any adjournment or continuance thereof, the City Council will consider arid, if appropriate, will adopt a resolution determining to proceed with the proposal to undertake the Program. All persons interested may file written comments with the City Clerk prior to the date of the hearing set forth above . Dated at Eden Prairie, Minnesota , this 26th day of October_ , 1988 . BY ORDER OF THE CITY COUNCIL