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)
•