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HomeMy WebLinkAboutResolution - 88-273 - Granting 1-Year Extension to Prairie Village Apartments for Purpose of Financing Multi Family Housing Development, Confirming Preliminary Approval - RESOLUTION NO . 88- N 1 Courrc.ilrriem5er i ril-roduced the following resolution; aind moved r a opt.icn: RES0LU`I'I ON RE1,AT1 NG TO ` II E i S S U A N C E OF REVENUE 130NDS OR NOTES PURSUANT `.I'O 1-1I1,IN-ESOTA STATUTES, CHAPTER 462C , F'OR THE PURPOSI: OF FINANCING A MUL`I'IIAMILY IIOUSfN(; DEVE;LOPMEt,!T ; CONFIRMING PRELIMINA}?Y APPI?OVAL OF 'I'11E: PROJECT; APPROVING THE CHANGE IN IDEITI'IT'Y OF DL;VELOPER; AND EX'E.'ENDING 1'}iI: EXPIRATION DATE OF INDUCEMENT RESOLUTION NO . 8 7 -- 3 1 1 . I3I; IT RESOLVED by the City Council of the C' i.ty of Eden Prairie , Minnesota ( the City ) , as f of lows Section 1 . Recitals 1 . O1 . On October 1 , 1985 , the Ci ty adopter? Resolutions 85-224 and 85- 225 ( the 1985 ReSO.IrltiOnS ) , pursuant Lo which, among other t_hi.ngs , it ( i ) adopted multif,arnily housing programs for Prairie Vi. .l I age Apartments , Phases I and 1 I ( the Programs ) , after holding a duly noticed public hearing thereon; ( ii ) authorized transmission of the Programs to the Minnesota Housing Finance Agency; and ( iii) preliminarily approved two bond issues For Prairie Village Apartments , Phases I and II ( herein coy lectively referred to as the " Projects " or the " Pr. o_ject " ) , each in the amount of Two Million Two Hundred Twenty-six Thousand Dollars ( $2 , 22.6 , 000 ) . 1 . 02 . The Programs were submitted by the City to the Minnesota Housing Finance Agency for review and approval , and on Decoinber 19 , 1985 , Lhe Board of the Minnesota 11ousing Finance Agency adopted Resolution No . III1FA 85- 71 , which stated that the Minnesota Ilom�; inq F'.i. nance Agency had failed to reject_ the Programs , resulting_ in approval of the Programs , pursuant to M-Lnnesota Statutes , Sections 462C . 04 , subd. 2 . 1 . 03 . 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 Phases I and II of the Project in a single phase as one Project, subject to the City and the Applicant agreeing to mutually acceptable ter-ins and conditions of a loan agreement by December 2, 1987 . 1 . 04 . On December 1. 6 , 1986 , the City adopted Resolution 86-31.5 , pu.r. scant to which , among other things , it approved an amended multifamily housing program ( the Amended Program) and authorized submicF: ion of the Amended Program to the Minnesota Housing Finance Agency for review and approval . I . 05 . On Jarivary 1.9 , 1987 ,. the Mill A conf i.rmed that the Awer;dcd Program wars reviewed and not, reje(- Led , resulting in approval of the Amended Program . 1 . 06 . A CerLi 1. irate- of Al lcx:rati.c;n I or the Project was grantr-d by the Milii;eF;ota 1)epc-ar. tment. of Energy and Economic Develo}.mient. on December 22 , .1986 . The expii ,iLlona date of such allocation has ber: n e::tended to Dc-,ce-111 >er 2 , 1988. A federal volume al. l.ocatiora carry forward wca �s f .i. led on Decei ber 29 , 1986 . 1 . 07 . On October 6 , 1987 , the City adopted Resolution No . 87-177 ( Lhe 1987 Inducernent Resolution ) pursuant to which , anoncg other thiriys , it approved the conveyance of the Project by Prairie Village P.partments Limited Partnership ( rhe Original Developer ) to a limited partnershi-p to be formed, whose general p:art.ners were to be Wayne C . Chaney , J . Peter Junghacker, Century Capital Group, Ltd . , and RRM , Incorporated ( collectively referred to as 'rr. ansf_eree Developer ) . 1 . 08 . On November 17 , 1987 , by Resolution No . 88- 311 , the City approved the extension of the expiration date of the 1987 Inducenen:t Resolution to December- 2 , 1988 . 1 . 09 . The original developer of the Project, the Prairie Village Lindted Partnership, never conveyed the Project to the Transferee Developer , and the Original Developer intends to (; devc lop the Project itself . It is intended that the Progratan and the Project will , in all other respects remain substantially the same as previously approved by the City . 1 . 10 . Und(-r Minnesota StaLutes , Chapter 462C, as amended (tine Act ) , the City is aut.-horized to issue and sell revenue bonds or obligations Lo snake or purchase loans to finance one or ai,ore multifaini ly housing developments within its boundaries . 1 . 11 . The Project, consists of a multifamily residential mousing development on approxi.mat'ely eight and one-quarter acres of land to be acquired by the Developer, located just east of the northeast corner of the intersection of Highway 5 and Counaty Road 4 in the City , composed of 112 apartment units -111d oLlier funct-ionally relat-ed and subordinate facilities and tine operation of the facilities as a multifamily housing development under the Act , to be known as Prairie Village Apar. tments . Either ( i ) at least twenty percent ( 20 b ) of the units will be si:aeci f ica l ly reserved for tenants whose incomes are no greater than fifty percent ( 50% ) of the area medial: income; or ( ii ) at least forty percent- ( 40% ) of the units will be specifically reserved for tenants whose incomes are no greater than sixty percent ( 60% ) of the area median .income . Determinations as to whether a unit mr,r,ts the requirements of (i ) or ( ii ) , above, will include adjustrnents for family size . Development and financing costs of the Project are preserntly i estimated by representatives of tier, Developer to be approximately Seven Million Two Hundred Thousand Dollars ($7 , 2 00 , 000 ) . 2 . 1 . 12 . RepresentaL _i_ves of the Original Developer have requested that. the C.i.Ly approve the substitution of the Original Developer for the Transferee Developer to develop the Project , issue it.s Bonds pursuont_ Lo the Ac:t , and make a loan of the proceeds of the .able of the Honds to the Original Developer for the acgu .isitian of [and or and the constr_ uct_ion and equipping of the Pi-ojoct , subject t to agreement k:y the Original Developer , or other- persons or institutions , to prornpLly pay t_hc: princi_pa]. of, prenliIIII if any , and interest on the Bonds . 1. . 13 . The Original_ Developer has further requested that the City approve the extension of the 1987 Inducement Resolution , as amended hereby, to December 2 , 1989 and that , with the exception of the identity of the developer of the Project , all other ter-ins and conditions of the 1987 Inducement Resolution remain the same . 1 . 14 . Representatives of the Original Developer_ have also advised the City that. tihe Mirinesot.a. Department of Energy and Economic Development will exLend Lhe exp.i.ration date of the Certificate of Allocation to Dec ember 2 , 1989 , upon receipt of an opinion of B..)h;d Counsel that such an extension will not violate the carryfo.rward provisions of Internal Revenue Code nf 1986 and upon receipt of a copy of a resolution extending the expiration date of the 1987 Inducement Resolution . 1 . 15 . The City has been advised by representatives of the Original Developer that conventional commercial financing of the costs of the Project is avail ible only on a limited basis and at such high costs of borrowing that the economic feasibility of the Project, would be significantly affected, but that with the aid of municipal financ.ing the Project will be more economically feasible . 1 . 16 . This Council haE; been advised by representatives of Miller & 9chroc�der Financial , Inc . , representing the Original Developeh , that on t1le basis of infor-mation available to them, the Project remains economically feasible, and the Bonds could be successfully i_F�;sued and sold - 1 . 17 . Neither the full faith and credit nor the taxing powers of the City nor any property of the City will be pledged to the payment of the Bonds . The Bonds are to be paid solely from the revenues of the Project . 1 . 18 . 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 carried to corpletion , whether or not the Project is approved by the City, and whether_ or not the Bonds are executed and issued . ( 1 . 19 . The adoption of t-.h i s resolution does not constitute a guarantee or a firm commitment that the City will issue the 3 . Bonds as reqLiest,�d by the applicant. . City ret- ains the oil to vii t-hdravi from parLiCi pilt ion and right in i A. SO Le d] t;c r e t '_L -1 accordinqly not _iF�sue Lll(-,- Bonch, --,hou Id t tic, C j Ly at- Fifly ti-HIE' pr_Lor to t lie .1 ss Lican(_--e thereof de t_(�rm J ne L ha t- i L d in the best 11 t e r e s L Of the City not t-o _issuc! LIl(_2 B()!),(JF; I)Y >110U ] d t-Ale parties to Lhe be LO re-ac-h agreement- as to the and ( (mci_it Io n�.; c) f zany of Lli(-! documents required for L h e t ra n F;a c t,1' 0 11 . 1 . 20 . Al L commi Lmellt-_F; of the C-i t-y expre,;sed hei-eiii are subject 1-(-,) the colid-I. Li.011 that by December 2 , 1989 , the City and the applicant sha 1 1. have agreed to irtutually acceptable terms and conditions Of. the Loan Agreement pursuant to which t- lie Original Dev e I ope r will agree, to pay to the City principal T Dr-eliliLHU, if any, and interest on Lhe Bonds , and of the other instruments and proceedings relating to the Bonds and their issuance a n d sale . If the events set 17 orth herein do not take place within the time set forth above , o.- arly extension thereof , and the Bonds are not- sold viiLhin such Lime , Lhis resolution shall expire and be of no fur-Llae-r effect . 1 . 21 . PUI-SLIant to Lhe requireirtents, of the Act and Section 147 ( f ) of the Internal- Revenue Cade of 1986 , as camerided ( L- lie Lode ) , a public hearing will be held on December aL 7 : 3 0 p . irt. , relating to the Amended Program proposed by the Original Developer under the Act , -including the proposed issuance of the Bonds or. Notes and t-he substitution of the Original. Developer for the Transferee Developer as the developer , after proper publication of notice of the public hearing in accord with the requirements of the Act and the Code . Sec,t.ion 2 . Approval and Authorization 2 . 01 It i�-.; hereby found and determined based upon the iliformat-Io'l pr c. ,eI?teal Lo t_hj !--; Comic 1 by Lhe representatives of i e 0 1, ij 7,(_ -i -.1 j i a I Developer v e I o p e r- t I i a t- i L �-.,o t i I d I.-)e in i t h e h e s L interests of Llic, Cit-y to issue the, Bond�; under the provisions of the Act and Lllo City ' s C-1-Ir-l -ier approval in order to finance costs to be i1lCL1L_r_Cd by the OLiCjin,_ll D(_VelUPCT­ ill the acqL) J .,_;.LLion , coiisLruction , and (--_!qLiippJ1Ai(j_ of the described f a c i I i t-1 e-3 . "Nle City hCr-(3by _1pPr0VC-_'S the SUbsti-Lutioll of the Original Developer for Llie Transferee Developer as developer of the Project and confirms; its preliminary approval to the issuance of the Bonds or Notes ill the approximate aggregate face alTIOUIlt of Five Million Seven Hundred Fifty Thousand Dollars ( $5 , 750 , 000 ) , subject to the. City , the Original Developer , and the purchaser of the Bonds reaching definitive agreement on the provisions for their payment . rPhe City hereby calls for a public hearing on the Amended Program to be held on December .6', 1988 , at 7 : 30 p . m . , at. the CILy Hall . 2 . 02 The City Attorney, the Mayor , the City Manager , and other officers , employees , and agents of the City are 4 . authorized , in cooperation with bond cniinsel , to initiate and continue the preparation and of such documents as may b(, appropriate to evidence the change in the identity of the developer , the terms of all agreements for payment of the Bonds , and the provisions for payment: of the principal of , the premium, if any , and _interest on the Bonds . 2 . 03 . It is further hereby found and determined, based upon the inf.oriiiaLion pre ented to this Council by the Original Developer and its representatives , that it would be ir, the best interests of the City to extend the expiration date of the 1987 Inducement Resolution to December 2., 1989 . Accordingly, all commitments of. the City expressed herein are subject to the condition that , by December 2 , 1989, the City and the Original Developer shall have agreed to mutually acceptable terms and conditions of the Loan Agreement pursuant to which the Original 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 this Resolution do not take place on or before Deceinber 2 , 1989 , or any extension thereof , and the Bonds are not sold within such time , this Resolution shall expire and be of no further effect . 2 . 04 . 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 198"1 Inducement Resolution to December 2 , 1989 , and to request an extension of the expiration date of the Certificate of Allocation for the Project to December 2 , 1989 . 2 . 05 . The City Clerk is hereby authorized to cause notice of the public hearing on the Amended Program, set for December_ f;3 1988 , at 7 : 30 p. m . , to be. published once, at least fifteen ( 15 ) days prior thereto , in the Eden Prairie News . Adopted by the City COUnCll of the City of Eden Prairie , Minnesota , this "day of ov$14bie 1988 ., Mayor ATTEST : /l Cit C1 rk if SOK : ET8 5 .