HomeMy WebLinkAboutResolution - 2010-22 - Issuance of Multifamily Housing Revenue Note - Prairie Meadows Project Series 2010 - 02/16/2010 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2010-22
RESOLUTION GRANTING PRELIMINARY APPROVAL TO THE
ISSUANCE OF A MULTIFAMILY HOUSING REVENUE NOTE
(PRAIRIE MEADOWS PROJECT), SERIES 2010
WHEREAS, the City of Eden Prairie(the"City") is a municipal corporation and political
subdivision duly organized and existing under the Constitution and laws of the State of
Minnesota; and
WHEREAS,pursuant to the Constitution and laws of the State of Minnesota,particularly
Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to carry out
the public purposes described therein and contemplated thereby in the financing of housing
within its jurisdiction, by issuing revenue notes and bonds to defray, in whole or in part, the
development costs of a low and moderate income rental housing development, and by entering
into any agreements made in connection therewith and by pledging any such agreements as
security for the payment of the principal of and interest on any such revenue notes and bonds;
and
WHEREAS, Community Housing Development Corporation, a Minnesota nonprofit
corporation (the "Borrower"), the owner of the Project, has requested the City to issue its
Multifamily Housing Revenue Note(Prairie Meadows Project),Series 2010(the"Note")for the
purpose of refinancing certain taxable bonds previously issued by the Borrower to refund certain
tax-exempt bonds issued by the City to finance the cost of acquisition and rehabilitation of a 168-
unit multifamily residential rental housing development for occupancy by persons and families of
low and moderate income (the "Project"), located at 11345 Westwind Drive in the City, and
generally known as Prairie Meadows Apartments,and financing additional improvements to the
Project and related costs; and
WHEREAS, the City has on this date conducted a public hearing on a program for the
issuance of revenue obligations for such purpose(the"Program"),after due publication ofnotice
thereof in a newspaper of general circulation in the City; and
WHEREAS, the Note and the interest on said Note shall be payable solely from the
revenues pledged therefor and the Note shall not constitute a debt of the City within the meaning
of any constitutional or statutory limitation nor give rise to a pecuniary liability of the City or a
charge against its general credit or assets and shall not constitute a charge,lien,or encumbrance,
legal or equitable, upon any property of the City other than the City's interest in the Project;
NOW,THEREFORE, BE IT RESOLVED BY THE CITY OF EDEN PRAIRIE that the
Project and the issuance of the Note in an amount up to$6,000,000 are hereby given preliminary
approval by the City, subject to the mutual agreement of the City, the Borrower and the initial
purchaser of the Note as to the details of the Note and provision for its payment. The Note will
be payable solely from the revenues of the Project and other moneys, if any, provided by the
Borrower, and the Note will not constitute or give rise to a pecuniary liability of the City or a
charge against its general credit or taxing powers. No holder of the Note shall ever have the
right to compel any exercise of the taxing power of the City to pay the Note, or the interest
thereon,nor to enforce payment against any property of the City,except revenues of the Project
pledged to the payment thereof; and
BE IT FURTHER RESOLVED that the Borrower has agreed to pay directly or through
the City any and all costs incurred by the City in connection with the Project and the issuance of
the Note, whether or not the Project is carried to completion, and whether or not the Note or
operative instruments are executed; and
BE IT FURTHER RESOLVED that all commitments of the City expressed herein are
subject to the condition that by December 31,2010 the City and the Borrower shall have agreed
to mutually acceptable terms and conditions of the loan agreement, the Note and the other
instruments and proceedings relating to the Note and its 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 Note is
not sold within such time, this Resolution shall expire and be of no further effect; and
BE IT FURTHER RESOLVED that the adoption of this Resolution does not constitute a
guaranty or firm commitment that the City will issue the Note as requested by the Borrower.
The City retains the right in its sole discretion to withdraw from participation and accordingly
not to issue the Note, or issue the Note in an amount less than the amount referred to herein
should the City at any time prior to issuance thereof determine that it is in the best interest of the
City not to issue the Note, or to issue the Note in an amount less than the amount referred to
herein, 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; and
BE IT FINALLY RESOLVED that the Borrower may incur costs of the Project prior to
the issuance of the Note preliminarily approved hereby. It is intended that such costs, if paid
prior to the availability of proceeds of the Note, will be reimbursed from such proceeds, when
available. This resolution is intended to constitute a declaration of official intent for purposes of
Tres. Reg. § 1.150-2 and any successor Iaw, regulation or ruling.
This resolution shall be in full force and effect from and after its passage.
ADOPTED by the Eden Prairie City Council on February 16, 2010.
Mil Young, M P
or
ATTEST:
K• leen Porta, City Clerk