HomeMy WebLinkAboutCity Council Resolution 1985-347RESOLUTION NO. 35-347
A RESC! T:C`N A.: ROS TNG AND ADOPTING AN AMEND-
MENT TO THE CITY'S HOUSING PROGRAM FOR TETE
PROPOSED PARKSIDE APARTMENTS PROJECT AND CON-
FIRMING PRELIMINARY APPROVAL OF THE ISSUANCE
OF REVENUE BONDS FOR SUCH PROJECT
WHEREAS, the City of Plymouth, Minnesota (the "City") is
authorized, pursuant to Minnesota Statutes, Chapter 462C
(the "Housing Act") to develop and administer multifamily
housing programs pursuant to a Housing Plan, which may be
financed by the issuance of housing revenue bonds of the
City; and
WHEREAS, the Cita has adopted the City of Plymouth Hous-
ing Plan (the "Housing Plan") after public hearing thereon
and review and cominer.t by the Metropolitan Council pursua=
to and in conformance wish the provisions of the Housing
Act; and
WHEREAS, the City has previously adopted a multifamily
housing revenue bond program entitled "Program for the Con-
struction of a Multifamily Housing Development" relating to
the proposed Parkside Apartments project and has submitted
such program to the Minnesota Housing Finance Agency for
review and approval pursuant to and in conformance with the
Housing Act; and
WHEREAS, the City wishes to amend the program to substi-
tute Parkside at Medicine Lake Partnership, a Minnesota
partnership to be formed (the "Partnership"), as developer
of the Project (as hereinafter defined) (the "Amended
Program"); and
WHEREAS, under the Amended Program, the City will issue
its multifamily housing revenue bonds in an amount of up to
$10,000,000 to finance the acquisition, construction and
installation of an approximately two hundred eleven (111)
unit multifamily housing development (the "Project") to be
developed, owned and operated by the Partnership or a joint
venture in which the Partnership will be a substantial par-
ticipant, and to be located in the City's Mission PUD; and
WHEREAS, the Project will be reserved for rental in par--
by
ar:by persons of low and moderate income, with at least 20
percent of the units held open for occupancy by families or
individuals with adjusted gross income not in excess of 80
percent of the median family income estimated by the United
10 States Department of Housing and Urban Development for the
Res. No. 85-347
mInn.eapolis/Sz. Paul Standard Metropclitan Statistical Asea;
. and
WHEREAS, the A.Tended Program is in ccnformance with the
provisions of the Housing Act; and
WHEREAS, the City has held a public hearing on the
Amended Program and issuance of the revenue bonds of the
City thereunder after at least 15 days' notice thereof pub-
lished in a newspaper generally circulating in the City; and
WHEREAS, the Council and the staff of the City has re-
viewed the Amended Program and believes that the Amended
Program will increase the supply in the City of decent, safe
and sanitary residential dwellings at rentals which persons
and families of low and moderate income can afford, and that
the Amended Program is in furtherance of the housing pol-
icies of the City;
NOW, THEREFORE, 3E TT RESOLVED by the City Ccunci: of
the City of Plymouth, Minnesota:
Section 1. The Amended Program, attached hereto as a
part of Exhibit A, is hereby approved and adopted by the
City.
Section 2. The City gives it preliminary approval to
the issuance of its Multifamily Housing Revenue Bonds (Park-
side Apartments Project) in an aggregate principal amount of
up to $10,000,000 to provide financing for the acquisition,
construction and installation of the Project.
Section 3. The staff of the City is hereby authorized
and directed to take all steps necessary and desirable tc
obtain approval of the Amended Program from the Minnesota
Housing Finance Agency, proceed to develop the Amended Pro-
gram and the financing therefor, and to prepare for imple-
mentation of the Amended Program at the earliest possible
date, provided, however, that no bonds shall be issued pur-
suant to the Amended Program until all necessary approvals
of the Amended Program shall be received from the Minnesota
Housing Finance Agency.
PASSED AND APPROVED this 20th day of May , 1985.
ATTEST:
0
City Clerk
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Mayor
Res. No. 85-347
16 PROGRAM FOR THE CONSTRUCTION
OF A MULTI-FA-M:LY HOUS:NG DEVELOPMENT
Pursuant to Minnesota Statutes, Chapter 462C (the
"Act"), the City of Plymouth (the "City") has been author-
ized to develop and administer programs of multifamily hous-
ing developments under the circumstances and within the
limitations set forth in the Act. Minnesota Statutes, Sec-
tion 462C.07 provides that such programs for multi -family
housing developments may be financed by revenue bonds issued
by the City.
The City has received a proposal from representatives of
Parkside at Medicine Lake Partnersh4p, a Minnesota partner-
ship to be formed (the "Developer") that, pursuant to the
authority found in the Act, the City approve a program prc-
viding for the construction of approximately two hundred
eleven (211) units of rental housing ("Housing Units")
located on an extension. of 40th Avenue North, more spe-
cifically on the J-1 portion of the Mission Residential
Planned Unit Development in the City (the "Project"). The
construction of the Project is to be funded through the
. issuance of up to $10,000,000 in revenue bonds issued by the
City (the "Bonds"). It is proposed that Bonds be sold pub-
licly through an underwriter and that the Bonds will include
some form of credit enhancement, such as additional collat-
eral, guaranty of a financial institution, insurance or a
letter of credit, in order to provide favorable interest
rates. Following construction of the Project, the Devel-
oper, or a related entity, will own and operate the Project
as a multi -family residential rental project. The two hun-
dred eleven. (211) units 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 in-
come. It is estimated that rents for the Housing Units will
be between $475 and $625 per month.
The City, in establishing this multi -family housing
program (the "Program"), has considered the information
contained in the City's 462C Housing Plan, adopted on April
11, 1983 (the "Housing Plan"), including particularly (i)
the availability and affordability of other government hous-
ing programs; (ii) the availability and affordability of
private market financing for the construction of multi-
family housing units; (iii) an analysis of population, un-
employment trends and projections of future population
trends and future employment needs; (iv) the recent housing
trends and future housing needs of the City; and (v) an
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Res. Pio. 85-347
analysis of hcw the Program will meet the needs of persc:ns
and families residing and expected to reside in the City.
The City, in adopting the Program, has further c=n-
sidered (i) the amount, timing and sale of Bonds to finance
the estimated costs of the housing units, to fund the appro-
priate reserves and to pay the cost of issuance; (ii) the
method of monitoring and implementation of the Program to
insure compliance with the City's Housing Plan and its ob-
jectives; (iii; the method of administering, servicing and
s,�pervising the Program; (iv) the cost of the City, includ-
ing future administrative expenses; (v) the restrictions on
the multifamily development to be financed under the Pro-
gram; and (vi) certain other limitations.
The City, in adopting the Program, considered the po-
tential financing impact of a bond issuance on affected
public agencies. in addition, the City reviewed the method
of marketing the Program. Such review examined the equal
opportunity for participation by (i) minorities; (ii) house-
holds with incomes at the lower end of the range that can be
served by the Program; (iii) households displaced by public
or private actions; (iv) families with children; and (v)
accessibility to the handicapped.
The Project will be constructed and financed pursuant to
Subdivisions 1 and 2 of Section 462C.05 of the Act.
Subsection A. Definitions
The following terms used in this Program shall have the
following meanings, respectively:
(1) "Act" shall mean Minnesota Statutes, Section
462C.01, et seq., as currently in effect and as the same may
be from time to time amended.
(2) "Adjusted Gross Income" shall mean gross family
income less $750 for each adult and less $500 for each other
dependent in the family.
(3) "Bonds' shall mean the revenue Bonds to be issued
by the City to finance the Program.
(4) "City" shall mean the City of Plymouth, County of
Hennepin, State of Minnesota.
(5) "Developer" shall mean Parkside at Medicine Lake
Partnership, a Minnesota partnership to be formed, or a
related entity.
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Res. No. 85-347
(6) "Housing Plan" shall mean the City of Plymouth 462C
Housing Plan, adopted on, April 11, 1983, setting forth cer-
tain information required by the Act.
(7) "Housing L'nit" shall mean any one of the market
rate apartment units located in the Project, occupied by one
person or family, and containing complete living facil-
ities.
(8) "Land" shall mean the real property upon which the
Project is situated.
(9) "Program" shall mean the program for the financing
of the Project pursuant to the Act.
(10) "Project" shall mean the multi -family housing de-
velopment consisting of approximately two hundred eleven.
(211) market rate Housing Units to be constructed by Park-
side at Medicine Lake Partnership on the Land, subject to
review and approval by the City Council :.n accordance with
the Plymouth Zoning Ordinance.
Subsection B. Proqram For Financinq The Proiect
It is proposed that the City establish this Project to
• construct two hundred eleven (211) Housing Units to be owned
by the Developer, or a related entity, at the price and upon
such other terms and conditions as are set forth herein and
as may be agreed upon in writing between the City, the
Trustee and the Developer. To do this, the City expects to
issue Bonds, the proceeds of which will be loaned to the
Developer for construction and initial financing of the
Project. It is expected that a Trustee will be appointed by
the City to monitor the construction of the Project and any
payments of principal and interest on the Bonds. The cost
of a credit enhancement item will be borne by the Developer
and payable in addition to the principal and interest on the
Bonds.
It is contemplated that the Bonds shall contain a matur-
ity of at least ten (10) years and will be priced to the
market at the time of issuance.
The City will hire no additional staff for the admini-
stration of the Program. The City intends to select and
contract with a trustee, experienced in trust matters to
administrate the Bonds.
Insofar as the City
writers, legal counsel,
others, all of whom will
. and revenues generated by
will be contracting with under -
bond counsel, the trustee, and
be reimbursed from bond proceeds
the Program, no administrative
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Res. No. 85-347
costs will be paid from the City's budget with respect to
this Prc;ran. The Bonds will not be general obligation
bonds of t. -e C -4--y, but are expected to be paid from proper-
ties pledged to the payment thereof, which may include a
credit ennancer*.ent item such as insurance or a letter of
credit.
Subsection C. Local Contributions To The Program
It is not contemplated that any additional financing or
contributions will be needed for the completion of the Pro-
ject, or for the operation of the Program.
Subsection D. Standards And Requirements Relating_ To
The Financing Of the Project Pursuant To The Program
The following standards and requirements shall apply
with respect to the operation of the Project by the De-
veloper pursuant to this Program:
(1) Substantially a'_1 of the proceeds of the sale of
the Bonds will be used to provide funds for the construction
of the Project, which will provide approximately two hundred
eleven (211) market rate residential units. The funds will
be made available to the Developer pursuant to the terms of
the Bond offering, which may include certain covenants to be
entered into between the City and the Developer.
(2) The Developer or owner of the Project, will not
arbitrarily reject an application from a proposed tenant
because of race, color, creed, religion, national origin,
sex, marital status, age or status with regard to public
assistance or disability.
(3) No Housing Unit may be in violation of applicable
zoning ordinances or other applicable land use regulations,
including any urban renewal plan or development district
plan, and including the state building code as set forth
under Minnesota Statutes, Section 16.83, et seq.
(4) At least twenty percent (20%) of the Housing Units
will be held for occupancy by families or individuals with
Adjusted Gross Income not in excess of eighty percent (80%)
of the median family income as estimated by the United
States Department of Housing and Urban Development for the
Minneapolis -St. Paul metropolitan area.
Subsection E. Evidence of Compliance
The City may require from the Developer or such other
person deemed necessary at or before the issuance of the
Bonds, evidence satisfactory to the City of the ability and
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Res. No. 85-347
intention of the Develcper to complete the Project, and
• evidence satisfactory to the City of compliance with the
standards and requirements for the making of the financing
established by the City, as set forth herein; and in coni.ec-
tion therewith, the City or its representatives may inspect
the relevant books and records of the Developer in order to
confirm such ability, intention and compliance. In addi-
tion, the City may periodically require certification from
either the Developer or such other person deemed necessary
concerning compliance with various aspects of this Program.
Subsection F. Issuance Of Bonds
To finance the Program authorized by this Section, the
City may by resolution authorize, issue and sell its Revenue
Bonds in an aggregate principal amount estimated to be up to
$10,000,000. The Bonds shall be issued pursuant to Section.
462C.07, Subdivision 1 of the Act, and shall be payable
primarily from the revenues of the Program authorized by
this Section..
Subsection G. Severabilit
The provisions of this Prgram are severable and if any
of its provisions, sentences, clauses or paragraphs shall be
. held unconstitutional, contrary to statute, exceeding the
authority of the City or otherwise illegal or inoperative by
any court of competent jurisdiction, the decision of such
court shall not affect or impair any of the remaining pro-
visions.
Subsection H. Amendment
The City shall not amend this Program while Bonds au-
thorized hereby are outstanding to the detriment of the
holders of such Bonds.
As Amended , 1985.
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