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HomeMy WebLinkAboutCity Council Resolution 1983-344R1:3DCl1TIt�t+t' NO. 83 344 PRELIF1INAOY APPROVAL LOANS TO LENDERS LANCASTER VILLAGE Member Councilmember Threinen introduced the following resolution and moved its adoption: 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 upon 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 Lancaster Village Partnership, A Minnesota Limited Partnership (the Developer) has advised this Council of the Developer's desire to acquire certain land and buildings located at 3610, 3630, 3636, 3640 and 3660 North Lancaster Lane in the City, and to rehabilitate and equip a multifamily rental housing development consisting of one hundred twenty-six (126) housing units, 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 $ 5.400.000 1.04. 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 Project and make the proceeds of the Bonds available to the Developer for the acquisition, rehabilitation 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. 1.05. The Cit has been advised the Developery by representatives of 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. 1.06. This Council has been advised by representatives of Miller i 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. 1.07. The Developer has agreed to pay all fees and expenses in connection with the Project. 1.08. 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 $4,150,000 2.02. The City hereby authorizes the issuance of the Bonds -to finance the Project and to take all actions necessary or desirable in connection therewith. 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 for the payment of the Bonds, and the provisions for payment of the principal of, premium, if any, and interest on the Bonds in compliance with -2- S� t a~ applicable state and federal statutes and regulations. 2.04. The 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 to be acquired, rehabilitated and equipped pursuant to Subdivision 3, Section 462C.05 of the Act. On J 1�tth ,,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 Sousing Finance Agency for review and approval in accordance with Section 462.05, Subdivision 5 and -Section 462C.04, Subdivision 2 of the Act. 2.05. tinder 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, rehabilitation, and equipmert•of the Project and in the issuance of the Bonds, any of the powers the Minnesota Sousing 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 Sousing Finance Agency, whether or not the Project is completed, and whether or not the Bonds are issued. Adopted by the City Council of the City of Plymouth, Minnesota, this 11th day of July, 1983. Mayor David Davenport Mayor Attest: Laurie Houk City Clerk The Motion for the adoption of the foregoing resolution was duly seconded by Member Neils and upon vote being taken thereon, the following voted in favor thereof: Mayor Davenport, Councilmembers Moe Neils, and Threinen following voted against the same:, Counci lmember Schneider Whereupon the resolution was declared duly passed and adopted and was signed by the Mayor and attested by the City Clerk. -3- SS. or 8 PZU) Ip the undersigned, being the duly qualified and al Clerk of the City of Plymouth,, Minnesota, hereby certify that have carefdIly compared the fOrOgOing resolution adopt•d-at a Meting of the City Council of said City held on ruly 11, 1983, with the original thereof on file in my office, and the same is a full, true and complete transcript thereof. Witness, my hand officially as such Clark and the corporate seal of the City this _ day of _ 0 1983. Laurie -Sauk, City Clerk - (MM) •