HomeMy WebLinkAboutCity Council Resolution 1983-146C11Y OF PLYMOUTH
Pursusnt to due call and notice thereof, a s ecial meeting of the City Council
of the City of Plymouth, Minnesota, was held on the 11th day of April
19_$g,, The following members were present:__ Mayor Davenport, Councilmembers
--macq. Nejls and Threinen
The _V11owing members were absent: Counci mem er Schneider
war►
r+*
Councilmember Moen introduced the following Resolution and moved its
adoption:
RESOLUTION NO. 83-146
RESOLUTION RELATING TO THE ISSUANCE OF REVENUE BONDS
PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C, FOR THE
PURPOSE OF FINANCING A MULTIFAMILY HOUSING
DEVELOPMENT; GIVING PRELIMINARY APPROVAL TO THE
DEVELOPMENT; ADOPTING A MULTIFAMILY HOUSING PROGRAM
AND AUTHORIZING SUBMISSION OF THE HOUSING PROGRAM TO
THE MINNESOTA HOUSING FINANCE AGENCY FOR REVIEW AND
APPROVAL
BE IT RESOLVED by the City Council of the City of
Plymouth, Minnesota (the City), as follows:
Section 1. Recitals.
1.01. Under Minnesota Statutes, Chapter 462C, as
amended (the Act), 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.
1.02. The Act provides that the City may plan,
administer and make or purchase loans to finance one or more
developments of the kinds described in Subdivisions 2; 3, 4 and
7 of Section 462C.05 of the Act Ripon adoption of a program
setting forth the information required by Subdivision 6 of
Section 462C.05 of the Act, after a public hearing held thereon
and after approval thereof by the Minnesota Housing Finance
Agency, as provided in Section 462C.01 of the Act on the basis
of the considerations stated in Section 462C.01 of the Act.
1.03. Representatives of Mission Partners, A
Minnesota Limited Partnership (the Developer) has advised this
Council of the Developer's desire to acquire certain land
located in the City, described as the "J-1 portion of the
hission Residential Planned Unit Development in the City" and
to construct and equip a multifamily rental housing development
consisting of approximately two hundred eleven (211) units
which will be both one and two bedroom apartments, of which
twenty percent (20%) of the units will be specifically reserved
for tenants whose incomes are not greater than eighty percent
(80%) of the area median income (the Project). Development and
financing costs of the Project are presently estimated by
representatives of the Developer to be approximately $11,000,000.
1.04. The Developer has requested, and the City has
approved, a proposed plan for the Mission Planned Unit
Development (PUD). The approved preliminary PUD plat/plan
tz
Resolution No. 83-146
Page 2
40 currently contemplates the construction of 104 dwelling units
in 3 -story condominium units and 101dwelling units of elderly
housing. The Project will require an amendment to the current
PUD plat/plan.
1.05. Representatives of the Developer have requested
that the City issue revenue bonds or obligations (the Bonds)
pursuant to the Act in such aggregate principal amount as may
be necessary to finance all or a portion of the costs of the
Pro4ect and make the proceeds of the Bonds available to the
Developer for the acquisition, construction and equipping of
the Project, subject to agreement by the Developer, or other
persons or institutions, to promptly pay the principal of,
premium, if any, and interest on the Bonds.
1.06. The City has been advised by representatives of
the Developer that conventional commercial financing of the
costs of the Project is available only on a limited basis and
at such high costs of borrowing that the nature and extent of
the Project and the economic feasibility of operating the
Project would be significantly affected, but with the aid of
municipal financing the Project can be constructed as designed
and its operation made more economically feasible.
• 1.07. This Council has been advised by
representatives of Miller 6 Schroeder Municipals, Inc.,
Minneapolis, Minnesota, representing the Developer, that on the
basis of information available to them, the Project is
economically feasible, and the Bonds could be successfully
issued and sold.
1.08. The Developer has agreed to pay all fees and
expenses in connection with the Project.
1.09. Neither the full faith and credit nor the
taxing powers of the City will be pledged to the payment of the
Bonds.
Section 2. Approval and Authorization.
2.01. It is hereby found and determined that it would
be in the best interest of the City to issue the Bonds under
the provisions of the Act to finance the costs of the Project;
the aggregate principal amount of the Bonds is not to exceed
$8,500,000.
2.02.
Bonds to finance
or desirable in
40 requests and the
for the Project
The City hereby authorizes the issuance of the
the Project and to take all actions necessary
connection therewith, provided the Developer
City grants the necessary land use approvals
in accordance with the City Zoning Ordinances.
-2-
y Resolution No. 83-146
Page 3
2.03. The Project is hereby given preliminary
approval by the City and the issuance of the Bonds for such
purpose is hereby approved. The Bonds shall not be issued
until the housing program described below has been reviewed and
approved as required by the Act and until the City, the
Developer and the purchaser of the Bonds have agreed upon the
details of the Bonds and the provisions for their payment. The
principal of, premium, if any, and interest on the Bonds, when,
as and if issued, shall be payable solely from property pledged
to the payment thereof and shall not constitute a debt of the
City. The City Attorney and other officers and employees of
the City are authorized in cooperation with bond counsel to
initiate preparation of such documents as may be appropriate to
the financing of the Project, setting forth the detailed terms
of the Bonds, the security therefor and the provisions for
payment of the principal of, premium, if any, and interest on
the Bonds in compliance with applicable state and federal
statutes and regulations.
2.04. rhe City has caused to be prepared a program
for the proposed development (the Program) which has been
presented to this Council, and which contains information
demonstrating the need for the Project, stating the method of
financing proposed and that the development is :o be acquired,
constructed and equipped pursuant to Subdivision 3, Section
462C.05 of the Act. On April 11, 1983, after notice duly
published, a public hearing was held on the Program. The
Program is hereby adopted by the City pursuant to Section
• 462C.05, Subdivision 5 of the Act. The Mayor and other
officers and employees of the City are hereby authorized to
prepare and execute the required certifications and submit the
Program to the Minnesota Housing Finance Agency fcr review and
approval in accordance with Section 462.05, Subdivision 5 and
Section 462C.04, Subdivision 2 of the Act.
2.05. Under Section 462C.07, Subdivision 1 of the
Act, the City may exercise, within its corporate limits, in the
making of the loan to finance the acquisition, construction,
and equipment of the Project and in the issuance of the Bonds,
any of the powers the Minnesota Housing Finance Agency may
exercise under Minnesota Statutes, Chapter 462A, without
limitation under the provisions of Minnesota Statutes, Chapter
475.
2.06. The Developer has agreed to pay any and all
costs incurred by the City in connection with the Project and
its financing whether or not the Program is approved by the
Minnesota Housing Finance Agency, whether or not the Project is
completed, and whether or not the Bonds are issued.
The notion for the adoption of the foregoing Resolution was duly seconded
by rnunilmembgr Neils , and upon vote being taken thereon the
following -voted in favor ereo : Mayor Davenport, Councilmembers Mden,
• Neils and Threinen
The following voted —against or abstained: none
Whereupon the Resolution was declared duly passed and adopted.
ARA