HomeMy WebLinkAboutCity Council Resolution 2006-507Extract of Minutes of Meeting of the City Council
of the City of Plymouth, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Plymouth, Minnesota was duly held at the City Hall on Tuesday, the 12th day of December,
2006, at 7:00 o'clock p.m.
The following Council members were present: Mayor Johnson, Councilmembers Willis,
Hewitt, Slavik, Bildsoe, Stein, and Black
and the following were absent: None.
The Mayor announced that this was the time and place for a public hearing on a proposal
by Hammer Residences, Inc., a Minnesota nonprofit corporation, for the City to enter into a joint
powers agreement under which a revenue bond would be issued by the City of Wayzata,
Minnesota, for, among other things, a housing program in Plymouth. The following persons
appeared:
After all persons present had an opportunity to express their views, the hearing was
closed.
Councilmember Bildsoe then introduced the following written resolution, the reading in
full thereof having been dispensed with by unanimous consent, and moved the adoption thereof:
RESOLUTION GIVING APPROVAL TO A PROPOSED HOUSING
PROGRAM AND THE PROPOSED ISSUANCE THEREFOR OF A REVENUE
BOND AT THE REQUEST OF HAMMER RESIDENCES, INC. PURSUANT
TO A JOINT POWERS AGREEMENT TO BE ENTERED INTO IN
CONNECTION THEREWITH
The motion for adoption of the foregoing resolution was duly seconded by
Councilmember Slavik, and upon vote being taken thereon the following voted in favor thereof:
All members voted in favor.
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
City Clerk
RESOLUTION NO. 2006-507
RESOLUTION GIVING APPROVAL TO A PROPOSED
HOUSING PROGRAM AND THE PROPOSED ISSUANCE
THEREFOR OF A REVENUE BOND AT THE REQUEST
OF HAMMER RESIDENCES, INC. PURSUANT TO A
JOINT POWERS AGREEMENT TO BE ENTERED INTO IN
CONNECTION THEREWITH
WHEREAS, by the provisions of Minnesota Statutes, Chapter 462C, as amended (the
"Housing Programs Act'), the City of Plymouth, Minnesota (the "City"), is authorized to plan,
administer, issue and sell revenue bonds or obligations to make or purchase loans to finance one
or more multifamily housing developments within its boundaries, which revenue bonds or
obligations shall be payable solely from the revenues of the development; and
WHEREAS, pursuant to Section 462C.07, Subdivision 1 of the Housing Programs Act, in
the purchase or making of multifamily housing loans and the issuance of revenue bonds or other
obligations, the City may exercise within its corporate limits any of the powers the Minnesota
Housing Finance Agency may exercise under Minnesota Statutes, Chapter 462A; and
WHEREAS, the City has received a request from Hammer Residences, Inc., a Minnesota
nonprofit corporation (the "Borrower"), that the City approve a housing program (the
"Program") pursuant to the Housing Programs Act, which provides for the City of Wayzata,
Minnesota (the "Issuer"), to issue a revenue bond (the "Bond") in a principal amount not to exceed
$2,500,000, all pursuant to Minnesota Statutes, Section 471.59 (the "Joint Powers Act'), and the
Housing Programs Act; and
WHEREAS, a portion of the proceeds of the Bond (the "Plymouth Portion") would be
loaned to the Borrower, to provide refinancing of existing mortgage indebtedness and
rehabilitation of the facilities located at 16205 14th Avenue North, 4525 Zachary Lane North,
420 Merrimac Lane and 11300 42nd Avenue North in the City, to the extent required by the
Housing Programs Act, all as more particularly described in the Housing Program developed in
connection therewith, a copy of which is currently on file in the office of the City Clerk (the
"Housing Program"); and
WHEREAS, a copy of the Housing Program has been presented to this Council and is
ordered placed on file with the City Clerk; and
WHEREAS, the Housing Program has been submitted to the Metropolitan Council for
review and comment as required by the Housing Programs Act; and
WHEREAS, proceeds of the Bond not constituting a part of the Plymouth Portion would
be applied to refinancing of existing mortgage indebtedness and rehabilitation of facilities of the
Borrower (such programs, together with the Housing Program, all collectively referred to as the
"Programs" or the Program"), located in one or more of the other Participating Jurisdictions
(defined below); and
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WHEREAS, the Joint Powers Act provides that one or more governmental units of the
State of Minnesota, by agreement entered into with one or more other governmental units of the
State of Minnesota, or another State, through action of their governing bodies, may jointly or
cooperatively exercise any power common to the contracting parties, and may provide for the
exercise of such power by one of the participating governmental units on behalf of the other
participating units; and
WHEREAS, pursuant to the Joint Powers Act, the Borrower has requested that the City
enter into a Joint Powers Agreement (the "Joint Powers Agreement") with the other jurisdictions
listed in Exhibit A (such jurisdictions collectively referred to as the "Participating Jurisdictions")
in connection with the proposed issuance of the Bond; and
WHEREAS, the Borrower has agreed to reimburse the City for the costs of publication of
notice of public hearing in a newspaper of general circulation in the City, together with legal fees
to be incurred by the City, as well as any other costs incurred by the City related to the Joint
Powers Agreement.
NOW, THEREFORE, be it resolved by the City Council of the City of Plymouth,
Minnesota, that:
I . As required by the Housing Programs Act, the City Council held a public hearing
on Tuesday, December 12, 2006 on the issuance of the Bond and on the proposal to undertake
and finance the Housing Program, all after publication in the official newspaper of general
circulation of a notice setting forth, among other things, the time and place of hearing; stating the
general nature of the Housing Program and an estimate of the principal amount of the Bond or
other obligations to be issued to finance the Housing Program; and stating that all parties who
appear at the public hearing shall have an opportunity to express their views with respect to the
proposal.
2. It is hereby found that the financing arrangement described by the Joint Powers
Agreement and the Bond will enhance the ability of the Borrower to incur tax-exempt
indebtedness to finance the Housing Program.
3. The Borrower will be required to pay all the expenses of the City paid or incurred
with respect to the Housing Program and to indemnify the City for any potential liability
incurred by the City with respect to the Housing Program.
4. The Housing Program and the issuance of a revenue bond by the Issuer to finance
the Housing Program, are hereby approved, subject only to final approval and authorization by
the Issuer thereof, and agreement by the Borrower and the Lender, as to the details of the Bond
and provision for its payment.
5. In no event shall the Bond ever be payable from or charged upon any funds of the
City other than amounts payable under the revenue agreement which are to be pledged to the
payment thereof, no holder of the Bond shall ever have the right to compel the exercise of the
taxing power of the City to pay the Bond or the interest thereon, nor enforce the payment thereof
against any property of the City the Bond shall not constitute a charge, lien or encumbrance,
legal or equitable, upon any property of the City; and the Bond does not constitute an
indebtedness of the City within the meaning of any constitutional, statutory, or charter limitation.
6. The Borrower is hereby authorized to enter into such contracts, in its own name
and not as agent for the City, as may be necessary for the Housing Program by any means
available to it and in the manner it determines, without advertisement for bids as may be required
for the acquisition or constriction of municipal facilities, but the City shall not be liable on any
such contracts.
7. Pursuant to a request by the Borrower that the Issuer issue its revenue bond in a
principal amount not to exceed $2,500,000, with not more than $964,000 thereof constituting the
Plymouth Portion, the City is hereby authorized and one or more officers are hereby directed to
enter into the Joint Powers Agreement with the other Participating Jurisdictions, under the
provisions of the Joint Powers Act, and the form of such Joint Powers Agreement has been
placed on file in the offices of the City. The form of the Joint Powers Agreement, as currently
on file, is hereby approved and the Joint Powers Agreement, in such form, but subject to such
modifications thereto as shall be approved by the officer or officers executing the same, which
approval shall be conclusively evidenced by the execution thereof, shall be executed and
delivered by one or more officers of the City.
Adopted this 12t1' day of December, 2006.
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EXHIBIT A
(Participating Jurisdictions)
City of Wayzata, Minnesota
City of Plymouth, Minnesota
City of Golden Valley, Minnesota
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
I, the undersigned, being the duly qualified and acting City Clerk of the City of
Plymouth, Minnesota (the "City"), do hereby certify that attached hereto is a compared, true and
correct copy of a resolution, duly adopted by the City Council of the City on December 12, 2006,
at a regular meeting thereof duly called and held, as on file and of record in my office, which
resolution has not been amended, modified or rescinded since the date thereof and which
resolution is in full force and effect as of the date hereof, and that the attached Extract of Minutes
as to the adoption of the resolution is a true and accurate account of the proceedings taken in
passage thereof.
WITNESS my hand and seal of the City this 12th day of December, 2006.
City Clerk
(Seal)
JOINT POWERS AGREEMENT
This Joint Powers Agreement ("Agreement"), dated as of December 1, 2006, is by and
between the City of Wayzata, Minnesota (the "City" or the "Issuer"), the City of Plymouth,
Minnesota ("Plymouth") and the City of Golden Valley ("Golden Valley" and, together with the
Issuer and Plymouth referred to collectively as the "Joint Powers Participants").
RECITALS
WHEREAS, Minnesota Statutes, Section 471.59 (the "Joint Powers Act'), provides that
two or more governmental units, by agreement entered into through action of their governing
bodies, may jointly or cooperatively exercise any power common to the contracting parties, and
may provide for the exercise of such power by one of the participating governmental units on
behalf of the other participating units;
WHEREAS, the Joint Powers Participants are "governmental units" under the Joint
Powers Act, and each one is a "city" under the Housing Programs Act with power to issue bonds
under the Housing Programs Act;
WHEREAS, the "Wayzata Program" described in Exhibit A (the "Wayzata Program"),
the "Plymouth Program" described in Exhibit A (the "Plymouth Program") and the "Golden
Valley Program" described in Exhibit A (the "Golden Valley Program" and together with the
Wayzata Program and the Plymouth Program, collectively referred to as the "Programs" or the
"Program") each constitutes a "program" within the meaning of the Housing Programs Act;
WHEREAS, it has been proposed that the Issuer issue a revenue bond or note on behalf
of itself, Plymouth and Golden Valley to finance the Programs, pursuant to Section 462C.07 of
the Housing Programs Act;
WHEREAS, the Bond shall not constitute an indebtedness or pledge the full faith and
credit of the Issuer, Plymouth, Golden Valley, the State of Minnesota, or any other agency or
political subdivision thereof, but shall be payable solely from the revenues pledged and assigned
thereto pursuant to the Loan Agreement Assignment; and
WHEREAS, the governing bodies of each of the Joint Powers Participants have
authorized the execution and delivery of this Agreement;
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NOW, THEREFORE, the Joint Powers Participants hereby agree as follows:
Section 1. In order to finance and refinance the Program, the City shall issue, on
behalf of itself and the other Joint Powers Participants, a revenue bond or note (referred to
collectively with any refunding obligations authorized by Section 5 hereof as the "Bond") in a
principal amount up to but not to exceed $2,500,000, all pursuant to the Joint Powers Act, the
Housing Programs Act, and the terms of a Loan and Purchase Agreement (the "Loan
Agreement") to be entered into between the Issuer, Hammer Residences, Inc., a Minnesota
nonprofit corporation (the "Borrower"), and Wells Fargo Brokerage Services, LLC (the
"Purchaser"), pursuant to which the Bond will be purchased from the Issuer by the Purchaser and
the proceeds of the Bond will be loaned by the Issuer to the Borrower.
Section 2. Of the $2,500,000 aggregate principal amount of the Bond, an amount up
to but not to exceed $1,025,000 will be allocated to the Wayzata Program.
Section 3. Of the $2,500,000 aggregate principal amount of the Bond, an amount up
to but not to exceed $1,040,000 will be allocated to the Plymouth Program.
Section 4. Of the $2,500,000 aggregate principal amount of the Bond, an amount up
to but not to exceed $435.000 will be allocated to the Golden Vallev Prouram.
Section 5. The Issuer shall exercise the powers granted by the Acts by adopting,
approving and executing such resolutions, documents, and agreements as shall be necessary or
convenient to authorize and issue the Bond and such other resolutions, documents, and
agreements as shall be necessary or desirable in connection with the issuance of the Bond and
giving effect to or carrying out the provisions of this Agreement and the documents under which
the Bond is issued and/or secured. The Issuer and the Joint Powers Participants hereby
specifically agree that, upon request of the Borrower, the Issuer may at any time during the term
hereof issue its refiinding revenue bond or bonds or note or notes (sometimes referred to herein
as "refunding obligations") for the purpose of refiinding, in whole or in part, the Bond, or any
one or more refiinding obligations subsequently issued to refiind the Bond. In such event this
Agreement shall continue to apply to such refiinding revenue bond or bonds or note or notes and
such refiinding obligations shall be governed hereby, all without fiirther act by either the Issuer
or the other Joint Powers Participants.
Section 6. Except to the extent specifically provided herein_ the Joint Powers
Participants shall not incur any obligations or liabilities to each other as a result of the issuance
of the Bond or the Programs. The Bond shall be a special, limited obligation of the Issuer
payable solely from proceeds, revenues and other amounts under the Loan Agreement pledged
thereto under the Loan Agreement Assignment. The Bond and the interest thereon shall neither
constitute nor give rise to a pecuniary liability, general or moral obligation or a pledge of the fiill
faith or loan of credit of the Joint Powers Participants, the State of Minnesota or any political
subdivision of the above, within the meaning of any constitutional or statutory provisions.
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Section 7. All costs incurred by the Joint Powers Participants in the authorization,
execution, delivery and performance of this Agreement shall be paid by the Borrower, as
provided in the Loan Agreement.
Section 8. Any surplus moneys remaining after the purpose of this Agreement has
been completed shall belong to the Joint Powers Participants, pro rata.
Section 9. This Agreement may not be terminated by any party so long as the Bond is
outstanding. This Agreement shall terminate upon the retirement or defeasance of the Bond or,
if refunding obligations are issued in accordance with the provisions hereof, upon the retirement
or defeasance of the last outstanding refiinding obligation, and this Agreement may not be
terminated in advance of such retirement or defeasance.
Section 10
time. No amendment
This Agreement may be amended by the Joint Powers Participants at any
impair the rights of the Borrower or holder of the Bond_ unless it has
consented to such amendment in the manner provided for an amendment of the Loan Agreement.
Section 11. This Agreement may be executed in several counterparts, each of which
shall be regarded as an original and all of which shall constitute but one and the same
Agreement.
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IN WITNESS WHEREOF, duly authorized officers of the Joint Powers Participants have
executed this Agreement as of the date set forth above but actually on the day of
, 2006.
(SEAL)
CITY OF WAYZATA
By
Mayor
Attest:
City Manager
[Signature page to Joint Powers Agreement dated as of December 1, 2006,
between the City of Wayzata, the City of Plymouth and the City of Golden Valley]
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CITY OF PLYMOUTH
By
Mayor
Attest:
City Clerk
[Signature page to Joint Powers Agreement dated as of December 1, 2006,
between the City of Wayzata, the City of Plymouth and the City of Golden Valley]
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CITY OF GOLDEN VALLEY
By
Mayor
Attest:
City Clerk
[Signature page to Joint Powers Agreement dated as of December 1, 2006,
between the City of Wayzata, the City of Plymouth and the City of Golden Valley]
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EXHIBIT A
THE PROGRAMS
11.1. The Wayzata Program
(a) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
disabilities located at 550 Broadway Avenue North, Wayzata, Minnesota, together with
the rehabilitation of the facility, to the extent required by the Housing Programs Act.
(b) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
disabilities located at 2412 Sheridan Hills Curve, Wayzata, Minnesota, together with the
rehabilitation of the facility, to the extent required by the Housing Programs Act.
(c) Refinance existing mortgage indebtedness originally incurred in connection
with certain property functionally related and subordinate to the above multifamily
housing developments located at 1909 East Wayzata Boulevard, Wayzata, Minnesota,
together with the rehabilitation of the property.
11.2. The Plymouth Program
(a) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
disabilities located at 16205 14t1' Avenue North, Plymouth, Minnesota, together with the
rehabilitation of the facility, to the extent required by the Housing Programs Act.
(b) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
disabilities located at 4525 Zachary Lane North, Plymouth, Minnesota, together with the
rehabilitation of the facility, to the extent required by the Housing Programs Act.
(c) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
disabilities located at 420 Merrimac Lane, Plymouth, Minnesota, together with the
rehabilitation of the facility, to the extent required by the Housing Programs Act.
(d) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
disabilities located at 11300 42nd Avenue North, Plymouth, Minnesota, together with the
rehabilitation of the facility, to the extent required by the Housing Programs Act.
11.3. The Golden Valley Program
(a) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
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disabilities located at 300 Jersey Avenue North, Golden Valley, Minnesota, together with
the rehabilitation of the facility, to the extent required by the Housing Programs Act.
(b) Refinance existing mortgage indebtedness originally incurred in connection
with the multifamily housing development for persons with developmental and other
disabilities located at 2025 and 2027 Unity Avenue North, Golden Valley, Minnesota,
together with the rehabilitation of the facility, to the extent required by the Housing
Programs Act.
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