HomeMy WebLinkAboutCity Council Resolution 2020-223
C ITY OF P LYMOUTH
R ESOLUTION N O. 2020-223
R ESOLUTION A PPROVING T ERMINATION OF R EGULATORY A GREEMENT
WHEREAS, the City of Plymouth, Minnesota (the "City"), issued its Multifamily Housing Revenue
Bonds (Parkside Apartments Project), dated August 1, 1985 (the "Original Bonds"), in the aggregate
amount of $9,500,000 pursuant to an Indenture of Trust dated August 1, 1985, by and between the City
and First Trust National Association (the "Original Trustee") for the purpose of making funds available to
make a loan to Parkside At Medicine Lake Partnership, a Minnesota partnership (the "Original Owner"),
whose interests were succeeded to by Parkside LaNel, a Limited Partnership (the "Prior Owner"), for the
purpose of acquiring, constructing, and installing a multifamily residential rental housing development
known as Parkside Apartments, located within the City (the "Project"); and
WHEREAS, at the time of the issuance of the Original Bonds, the City, the Original Trustee, and
the Original Owner entered into that certain Regulatory Agreement dated August 1, 1985 (the "Original
Regulatory Agreement") to restrict the use of the proceeds of the Original Bonds and the use of the
Project; and
WHEREAS, the City issued its $9,500,000 Multifamily Housing Redevelopment Revenue
Refunding Bonds (Parkside Apartments Project), Series 1990 (the "1990 Bonds"), in the original amount
of $9,500,000, to refund the Original Bonds; and, subsequently, the City issued its Multifamily Housing
Revenue Refunding Bonds (Parkside LaNel Apartments Project), Series 1995A (the "1995 Bonds") in the
original principal amount of $9,500,000, to refund the 1990 Bonds; and
WHEREAS, at the time of issuance of the 1995 Bonds, the City, the Original Trustee, and the
Prior Owner entered into that certain Amendment Number One to Regulatory Agreement dated as of
August 1, 1995 ("Amendment One to Regulatory Agreement"), to add certain requirements to the
Original Regulatory Agreement; and
WHEREAS, U.S. Bank National Association (the "Trustee") then succeeded the Original Trustee in
its interest and role as trustee; and
WHEREAS, the City subsequently issued its $9,120,000 Variable Rate Demand Multifamily
Housing Revenue Refunding Bonds (Parkside Apartments Project) Series 2003 (the "2003 Bonds") on
April 1, 2003, to refund the entire outstanding principal amount of the 1995 Bonds and to finance
certain costs of issuance; and
WHEREAS, at the time of issuance of the 2003 Bonds, the City, Trustee, and Parkside II Limited
Partnership, a Minnesota limited partnership (the "Owner"), as successor to the Prior Owner, entered
into that certain Amendment Number Two to Regulatory Agreement dated as of April 1, 2003
("Amendment Two to Regulatory Agreement" and together with the Original Regulatory Agreement and
Amendment One to Regulatory Agreement, the "Regulatory Agreement") to amend and modify the
Regulatory Agreement; and
WHEREAS, the Owner is the fee owner of the Project and assumed the obligations of the
Regulatory Agreement and 2003 Bonds as more fully set forth in that certain Master Assumption,
Modification and Release Agreement dated August 31, 2004; and
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WHEREAS, the City has been advised that the Owner has called for the redemption of all of the
outstanding maturities of the 2003 Bonds; and
WHEREAS, upon the redemption of the 2003 Bonds, the terms of the Regulatory Agreement will
have been satisfied, and the Owner has requested that the City allow for the termination of the
Regulatory Agreement, and has submitted a form of Termination of Regulatory Agreement for review
and approval.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA that:
1. The City Council approves, subject to the redemption and payment of the 2003 Bonds,
the Termination of Regulatory Agreement in substantially the form submitted, and the Mayor and City
Manager are authorized and directed to execute the Termination of Regulatory Agreement on behalf of
the City.
2. The approval given to the Termination of Regulatory Agreement includes approval of
such additional details therein as may be necessary and appropriate and such modifications thereof,
deletions therefrom and additions thereto as may be necessary and appropriate and approved by the
City officials authorized by this resolution to execute the Termination of Regulatory Agreement. The
execution of the Termination of Regulatory Agreement by the appropriate officer or officers of the City
shall be conclusive evidence of the approval of the Termination of Regulatory Agreement in accordance
with the terms hereof.
3. In the event the Owner fails to redeem and pay off the 2003 Bonds, the Regulatory
Agreement will remain in full force and effect.
The motion for adoption of the foregoing resolution was duly made by member Carroll seconded by
member Prom and, after full discussion thereof, and upon a vote being taken thereof, the following
voted in favor thereof: Mayor Wosje, member Roehl, Willis, McGregor, Carroll, and Prom.
and the following voted against same: member Davis.
APPROVED by the City Council on this 25th day of August, 2020.
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STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF PLYMOUTH
I, the undersigned, being the duly qualified and acting City Clerk of the City Council of the City of
Plymouth, Minnesota, do hereby certify that I have carefully compared the attached and foregoing
extract of minutes with the original minutes of a meeting of the City Council City held on the date
therein indicated, which are on file and of record in my office, and the same is a full, true and complete
transcript therefrom insofar as the same relates to Resolution No. 2020-____ Authorizing Execution of a
Termination of Regulatory Agreement.
WITNESS my hand as such City Clerk of the City Council of the City of Plymouth, Minnesota this
______ day of _________________, 2020.
_____________________________
City Clerk
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