Loading...
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