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HomeMy WebLinkAboutCity Council Resolution 1984-343CITY OF PLYMOUTH Pursuant to due call and notice thereof, a re ular meeting of the City Council of the City of Plymouth, Minnesota, was ie on t e 4th day of June , 19 84, The following members were present: Mayor avenport,ounc ers -F1;iis, Moen, Schneider and Crain The following members were absent: None ** Councilmember Neils introduced the following Resolution and moved Its adoption: RESOLUTION NO. 84-343 A RESOLUTIOP OF INTENT RELATING TO THE ISSUANCE OF APPROXIMATELY $8,000,000 COLLATERALIZED MULTIFAMILY HOUSING DEVELOPMENT REVENUE BONDS FOR THE FOX FOREST APARTMENTS HOUSING PROJECT WHEREAS, the City Council of the City of Plymouth, Minnesota (the "City") has determined that a serious shortage of decent, safe and sanitary housing exists in the City, and the City desires to cause to be provided decent, safe and sanitary housing for persons and families in the City; and WHEREAS, the City is authorized and empowered by the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes Chapter 46209 to Issue revenue obligations for the purpose of financing the construction or development of multifamily rental housing by the making of loans to mortgagors to finance the development of multifamily rental housing; and WHEREAS, Richard Neslund, a Minnesota resident, desires to develop, construct and equip multifamily rental housing for persons of low and moderate income which will result in increased residential opportunities within the City, which will be owned by Richard Neslund or a related entity; and WHEREAS, Richard Neslund will acquire a parcel of real estate located north of Highway 55 and south of 18th Avenue in Plymouth, Minnesota and will develop, construct and equip thereon a 160 -unit housing project for persons of low and moderate income to be known as the Fox Forest Apartments Project (the "Project"); and WHEREAS, as an inducement to Richard Neslund to acquire, develop, construct and equip the Project, the City desires to adopt this resolution; and WHEREAS, Miller do Schroeder Municipals, Inc. of Minneapolis, Minnesota is an experienced municipal bond underwriter and has structured the proposed financing for the City at the request of Richard Neslund; and Resolution No. 84-343 Page Two D WHEREAS, it is apparent that the development of the Project will increase the number of residential units and provide needed, decent, safe ane sanitary housing in the City, all of which are in the public interest of the City; and WHEREAS, the financing of the proposed Project through the issua,ice of the hereinafter described Bonds of the City will increase the assessed valuation of the City and further provide for and promote the public health, safety, morals dnd welfare of the inhabitants of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, as follows: Section 1. Approval is hereby given to the application of Richard Neslund relating to the development, construction and equipping of the Fox Forest Apartments Project to be located thereon. Section 2. The City Council hereby establishes its intent to issue its collateralized multifamily housing development revenue bonds (the "Bond") in the approximate amount of $8,000,000 for the purpose of making a permanent loan to be evidenced by a mortagage note to Richard Neslund to provide financing for the acquisition, development, construction and equipping of the Project, to fund a bond debt service reserve fund and to pay certain costs of issuance of the Bonds. Section 3. As an inducement to Richard Neslund to acquire, develop, construct and equip said Project, the City Council shall cooperate and take such action as may be necessary in the drafting of documents or the performance of such other acts as will facilitate the issuance of the Bonds by the City and the development, construction and equiping of the Project. Section 4. Miller do Schroeder Municipals, Inc. is hereby appointed and employed as Underwriter for the proposed financing, and all fees and expenses of each shall be paid solely from proceeds of the sale of the Bonds or by the purchase of the Bonds at a discount. Section S. Any costs or expenses of the City incurred in connection with the Project Wall be reimbursed from either the proceeds of the Bonds to be issued with respect thereto or from payments by other parties to the financing. Section S. The obligation hereunder of the City and its City Council shall be limited solely to good -faith efforts to consummate the proceedings contemplated by this resolution and to issue the Bonds, and neither the City nor its City Council nor its officers, agents or employees shall incur any liability whatsoever if for reasons beyond the control of the City and its City Council the proposed issuance of the Bonds cannot be consumated. Resolution No.84-343 Page Three Section 7. This Resolution shall be in full force and effect from and after Its passage by the City Council of the City of Plymouth. ADOPTED AND APPROVED this 4th day of June, 1984 by the Nayor and City Council of the City of Plymouth. The motion for the adoption of the foregoing Resolution was duly seconded by Councilmember Moen , and upon vote being taken thereon, 'tTe 0 ow ng voted n favor t ereo : Ry -or Davenport, Councilmembers Crain Moen, andNeils e followina votea against or aostainea: Councilmember 5chnelder Whereupon the Resolution was declared duly passed and adopted: sit