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HomeMy WebLinkAboutResolution - 88-293 - Approval of Amended Housing Plan for Prairie Village Apartments - RESOLUTION NO. 8 8--21, 3 Councilmember introduced the following resolution and moved its adoption: RESOLUTION RELATING TO THE ISSUANCE OF REVENUE BONDS OR NOTES PURSUANT TO MINNESOTA STATUTES , CHAPTER 462C, FOR THE PURPOSE OF FINANCING A MULTIFAMILY HOUSING DEVELOPMENT; AND APPROVING AN AMENDED HOUSING PROGRAM. BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the City) , as follows: Section 1 . Recitals 1 . 01 . On October 1 , 1985 , the City adopted Resolutions 85-224 and 85-225 (the 1985 Resolutions ) , pursuant to which, among other things , it ( i) adopted multifamily housing programs fo r Prairie Village Apartments , Phases I and II (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 collectively referred to as the "Projects" or the "Project" ) , each in the amount of Two Million Two Hundred Twenty-six Thousand Dollars ( $2 , 226 , 000 ) . 1 . 02 . The Programs were submitted by the City to the Minnesota Housing Finance Agency for review and approval , and on December 19 , 1985 , the Board of the Minnesota Housing Finance Agency adopted Resolution No. MHFA 85-71 , which stated that the Minnesota Housing Finance Agency had failed to reject the Programs , resulting in approval of the Programs , pursuant to Minnesota Statutes , Section 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 terms and conditions of a loan agreement by December 2 , 1987 . 1 . 04 . On December 16 , 1986 , the City adopted Resolution 86-315 , pursuant to which, among other things , it approved an amended multifamily housing program (the Amended Program) and authorized submission of the Amended Program to the Minnesota Housing Finance Agency for review and approval . 1. 05 . On January 19 , 1987 , the MHFA confirmed that the Amended Program was reviewed and not rejected, resulting in approval of the Amended Program . 1. 06 . 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 has been extended to December 2 , 1988 . A federal volume allocation carry forward was filed on December 29 , 1986 . 1. 07 . On October 6 , 1987 , the City adopted Resolution No . 87-277 ( the 1987 Inducement Resolution) pursuant to which, among other things , it approved the conveyance of the Project by Prarie Villaqe Apartments Limited Partnership (the Original Developer) to a limited partnership to be formed, whose general partners were to be Wayne C. Chaney, J. Peter Jungbacker, Century Capital Group, Ltd. , and RRM, Incorpora;:ed ( collectively referred to as Transferee Developer) . 1. 08 . On November 17 , 1987 , by Resolution No . 87-311 , the City approved the extension of the expiration date of the 1987 Inducement Resolution to December 2 , 1988 . 1. 09 . On November 15 , 1988 , by Resolution No . 88-273 , the i City approved the substitution of the Original Developer of the Project for the Transferee Developer and further extended the expiration of the 1987 Inducement Resolution to December 2 , 1989 . 1. 10 . Representatives of the Original Developer have advised the City that the Minnesota Department of Energy and Economic Development has extended the expiration date of the Certificate of Allocation to December 2 , 1989 . 1 . 11 . Under Minnesota Statutes , Chapter 462C, as amended ( the Act ) , the City is authorized to issue and sell revenue bonds or obligations to make or purchase loans to finance one or more multifamily housing developments within its boundaries . 1 . 12 . The Project consists of a multifamily residential housing development on approximately 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 County Road 4 in the City, composed of 112 apartment units and other functionally related and subordinate facilities and the operation of the facilities as a multifamily housing development under the Act, to be known as Prairie Village Apartments . Either ( 1) at least twenty percent ( 20%) of the units will be specifically reserved for tenants whose incomes are no greater than fifty percent (50% ) of the area median ( income; or ( 1i) at least forty percent ( 40% ) of the units will 2 . 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 meets the requirements of ( i ) or ( ii) , above, will include adjustments for family size. Development and financing costs of the Project are presently estimated by representatives of the Developer to be approximately Seven Million Two Hundred Thousand Dollars ( $7 , 200 , 000 ) . 1 . 13 . The City has caused to be prepared and placed on file in the City offices a second revised housing program ( the Second Amended Program) for the proposed Project under the Act, which contains information demonstrating the need for the Project, stating the method of financing proposed and that the Project is to be constructed and equipped pursuant to Subdivision 2 , Section 462C . 05 of the Act . 1 . 14 . It is necessary for the City to approve the proposed bonds and notes to finance the Project and to approve the Second Amended Program relating to the financing of the Project . 1 . 15 . Pursuant to the requirements of the Act and Section 147 ( f ) of the Internal Revenue Code of 1986 , as amended (the Code) , a public hearing was held on December 13 , 1988 , at 7 : 30 p.m. , relating to the Second Amended Program proposed by the Original Developer under the Act, including the proposed issuance of the Bonds or Notes and the 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. Section 2 .. Approval and Authorization 2 . 01 . It is hereby found and determined based upon the information presented to this Council by the representatives of the Original Developer that it would be in the best interests of the City to issue the Bonds under the provisions of the Act and the City ' s earlier preliminary approvals in order to finance costs to be incurred by the Original Developer in the acquisition, construction, and equipping of the Project. The City hereby approves and adopts the Second Amended Program. 2 . 02 . The Mayor and other officers , employees , and agents of the City, including Bond Counsel , are hereby authorized to notify the Minnesota Housing Finance Agency (MHFA) of the approval of the Second Amended Program and to submit the Second Amended Program to the MHFA, together with such other information as the MHFA shall require, for the approval of the MHFA. 3 . Adopted by the City Council of the City of Eden Prairie, i Minnesota, this 13th day of December,, 1988 . ayor ATTEST: / City cl SCK:EZ5s 4 ,