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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 - 2 - 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 -1- 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. - 2 - 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 - 3 - 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 - 4 - 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. - 5 -