HomeMy WebLinkAboutCity Council Resolution 1995-408RESOLUTION NO. 115-403
( RESOLUTION GIVING PRELMMARY APPROVAL TO THE ISSUANCE
OF TAX -EDIT BONUS AND AUTHORIZING
APPLICATION FOR ALLOCATION OF BONDING AUTHORTTY
WHEREAS, the City of Plymouth, MOnesota (the "City") is authorized to issue
tax-exempt bonds subject to the annual statewide volume cap on such bonds: and
WHEREAS, the City proposes to issue its special revenue obligations in an
aggregate principal amount not exceeding $9,605,000 (the "Bonds') to finance the
acquisition and rehabilitation of a 204 unit qualified residential rental project known as
the At the Lake Apartments (the: "Project') located at 2500 Nathan Lane in the City of
Plymouth, Minnesota; and
WHEREAS, the City anticipates lending the proceeds of the Bonds to Melair
Associates, a limited partnership (the "Borrower"); and
WFERE.AS, the Borrower has represented that it will reimburse the City for any
administrative expenses incurred by the City in connection with the issuance of the
Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PLYMOUTH that:
1. The City Council hereby states its preliminary intention to issue its tax-
exempt bonds in the aggregate principal amount not exceeding $9,605,000
to finance the cost of the Project, subject to the agreement between the
City and the Borrower as to the ,irovision of Section 8 or similar housing
subsidies at the Project.
2. The City Manager and authorized officers of the City, together with Best &
Flanagan Professional Limited Liability Partnership, as bond counsel with
respect to die Bonds, are hereby authorized to prepare and submit to the
State of Minnesota Department of Finance, an Application for Allocation
of Bonding Authority for Tax Exempt Financing under Federal Tax Law, in
accordance with the provisions of Minnesota Statutes, Chapter 474A.
3. The City Manager is hereby authorized and directed to take all steps
necessary and desirable to proceed to develop the Project and the financing
therefor.
4. The intention expressed hereby shall not be deemed to obligate the City to
take any further favorable action for the issuance of the Bonds or to bind
the City to issue the Bonds. All details of such revenue bond issue and the
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provisions for payment thereof shall be subject to final approval of the
Bonds and the Project by the City and may be subject to such further
conditions as the City may specify. The issuance of the Bonds shall be
subject to a final authorizing resolution by the City Council in its sole
discretion and approval by the City of the terms of the Bonds and the
documents in connection therewith. The City may, in its sole discretion,
determine at any time to not issue the Bonds.
5. That the foregoing preliminary approval of the issuance of Bonds shall be
subject to final determination by the City of terms and conditions
acceptable to the City in its sole discretion, including the affordability or
units in the Project.
6. That the foregoing preliminary approval of the issuance of Bonds shall not
constitute an irrevocable commitment on the part of this. City to issue the
Bonds.
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