Loading...
HomeMy WebLinkAboutCity Council Resolution 2002-151follov-s: CITY OF PLYMOUTH RESOLUTION NO. 2002-151 RESOLUTION RELATING TO RESIDENTIAL GROUP HOME FACILITIES OWNED AND OPERATED BY FRASER, A MINNESOTA NONPROFIT CORPORATION, AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COSTS THEREOF UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, AND MINNESOTA STATUTES, SECTIONS 469.152-469.165, AS AMENDED, PURSUANT TO A JOINT POWERS AGREEMENT; GRANTING PRELIMINARY APPROVAL THERETO; ESTABLISHING COMPLIANCE WITH CERTAIN REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED; GRANTING APPROVAL FOR ENTERING INTO A JOINT POWERS AGREEMENT; AND TAKING CERTAIN OTHER ACTIONS WITH RESPECT THERETO BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as Section 1. Recitals. 1.01. The City is a home rule city duly organized and existing under its Charter and the Constitution and laws of the State of Minnesota. 1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended, and Minnesota Statutes, Sections 469.152 - 469.165, as amended, (collectively, the "Act"), the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance multifamily housing developments and revenue producing enterprises located Nvithin the City. 1.03. Fraser, a Minnesota nonprofit corporation (the "Company") has proposed that the City, pursuant to the Act, authorize the City of Blaine, Minnesota (the "City of Blaine") to issue revenue bonds of the City of Blaine in the approximate aggregate principal amount not to exceed $4,000,000, in one or more series at one time or from time to time (the "Bonds"), the proceeds of which Nvill be loaned by the City of Blaine to the Company to be applied by the Company to: (i) refinance the costs to the Company of twenty-two residential group home facilities (collectively, the "Project") located in the City, the City of Blaine, and in the cities of Brooklyn Park, Eden Prairie, Edina, Golden Valley, Minnetonka, Plymouth and Richfield (collectively N ith the City and the City of Minneapolis, the "Participant Cities"), including the group home facilities located at 17920 30th Avenue N., 3225 Queensland Lane N., 6030 Goldenrod Lane, and 2665 JeNvel Lane N. in the City; (ii) finance the costs of the rehabilitation of the residential group home facilities comprising the Project; (iii) refinance the costs of a development achievement center for children Nvith autism and related disorders located at 3333 Universitv Avenue S.E. in the Citv of Minneapolis (the "Minneapolis Facility"), and (iv) finance the costs of issuing the Bonds. 1.04. The City is required to adopt a housing program (the "Housing Program") pursuant to Section 462C.03, subdivision 1 a, of the Act, prior to the issuance of revenue bonds. Resolution No. 2002-151 Page 2 of 4 1.05. Under Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), prior to the issuance of the Bonds, a public hearing, duly noticed, must be held by the City Council. Under Section 462C.04, subdivision 2, of the Act, the City must conduct a public hearing, duly noticed, Nvith respect to the Housing Program and the portion of the Project located in the City. A public hearing Nvas held on March 26, 2002, after publication of notice on March 13, 2002, in the Sinn -,Sailor, a newspaper circulating generally in the City, Nvith respect to: (i) the required public hearing under Section 147(f) of the Code; (ii) the Housing Program; and (iii) the preliminary approval of the issuance of the Bonds. Section 2. Preliminary Findings. Based on representations made by the Company to the City to date, the City Council of the City hereby makes the folloNving preliminary findings, determinations, and declarations: (a) The Bonds Nvill refinance the outstanding indebtedness incurred Nvith respect to the residential group home facilities for the developmentally disabled comprising the Project and Nvill also refinance a development achievement center for children Nvith autism and related disorders comprising the Minneapolis Facility. (b) The proceeds of the Bonds Nvill be loaned to the Company by the City of Blaine and the proceeds of the loan Neill be applied to refinance the Project, finance the rehabilitation of the Project, refinance the Minneapolis Facility, and finance the issuance costs of the Bonds. The City of Blaine Neill enter into a Loan Agreement Nvith the Company requiring loan repayments from the Company in amounts sufficient to repay the loan when due and requiring the Company to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In authorizing the issuance of the Bonds and the financing and refinancing of the portion of the Project located in the City and related costs, the City s purpose is and the effect thereof Nvill be to promote the public Nvelfare of the City and its residents by retaining and improving group home facilities and otherwise furthering the purposes and policies of the Act. (d) The Bonds Nvill be limited obligations of the City of Blaine payable solely from the revenues pledged to the payment thereof, and Neill not be a general or moral obligation of the City or be secured by the taxing power or any property or assets of the City. Section 3. Preliminary Approval. The City Council hereby gives preliminary approval to the issuance of the Bonds pursuant to a Joint PoNvers Agreement Nvith the City of Blaine and the Participant Cities in the approximate aggregate principal amount not to exceed $4,000,000 to finance all or a portion of the costs of the Project and the Minneapolis Facility, subject to final approval by the City Council of the City of Blaine, folloNving the preparation of bond documents and a determination by the City of Blaine that the financing of the Project and the Minneapolis Facility and the issuance of the Bonds are in the best interests of the Participant Cities and the City of Blaine. Section 4. Joint PoNvers Agreement. The City Council hereby approves a Joint PoNvers Agreement between the Participant Cities and the City of Blaine (the "Joint PoNvers Agreement") substantialIv in the form of the Joint PoNvers Agreement now on file Nvith the City. The City Council hereby authorizes the execution and delivery of the Joint PoNvers Agreement by the Mavor and City Manager of the City (or by other members of the City Council or other officers of the Citi- who are Resolution No. 2002-151 Page 3 of 4 authorized to execute and delivery the Joint PoNvers Agreement on behalf of the City) consistent Nvith the provisions of this resolution. Section 5. Housing Program. The City Council hereby approves the Housing Program and authorizes submission of the Housing Program to the Metropolitan Council for its review pursuant to Minnesota Statutes, Section 462C.04, subdivision 2. Section 6. Reimbursement of Costs under the Code. 6.1. The United States Department of the Treasury has promulgated final regulations, designated as Treasury Regulations, Section 1.150-2 (the "Regulations"), governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to project expenditures paid prior to the date of issuance of such bonds. The Regulations require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen months after the later of. (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 6.2. To the extent any portion of the proceeds of the Bonds Nvill be applied to expenditures Nvith respect to the Project, the City reasonably expects to reimburse the Company for the expenditures made for costs of the Project from the proceeds of the Bonds after the date of payment of all or a portion of such expenditures. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations and also qualifying expenditures under the Act. Based on representations by the Company, other than (i) expenditures to be paid or reimbursed from sources other than the Bonds, (ii) expenditures permitted to be reimbursed under prior regulations pursuant to the transitional provision contained in Section 1.150-2(j)(2)(1)(B) of the Regulations, (iii) expenditures constituting preliminary expenditures Nvithin the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a "de minimus" amount (as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures Nvith respect to the Project have been made by the Company more than sixty days before the date of adoption of this resolution. 6.3. Based on representations by the Company, as of the date hereof, there are no funds of the Company reserved, allocated on a long term -basis or othenvise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of the Bonds, other than pursuant to the issuance of the Bonds. This resolution, therefore, is determined to be consistent Nvith the budgetary and financial circumstances of the Company as they exist or are reasonably foreseeable on the date hereof. Section 7. Costs. The Company Neill pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection Resolution No. 2002-151 Page 4 of 4 Nvith the Project, the Minneapolis Facility, and the issuance of the Bonds, Nvhether or not the Bonds are issued. Section 8. Commitment Conditional. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City of Blaine Neill issue the Bonds as requested by the Company. The City also retains the right, in its sole discretion, to v thdraw from participation should the City Council, at anv time prior to the issuance thereof, determine that it is in the best interests of the City not participate in the financing of the Project and the Minneapolis Facility or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents for the transaction. Section 9. Effective Date. This Resolution shall be in full force and effect from and after its passage. Adopted by the City Council of the City of PIN -mouth, Minnesota, on this 26th day of March, 2002. STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS. The undersigned, being the duly qualified and appointed City Cleric of the City of PIN -mouth, Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the PIN -mouth City Council on March 26, 2002, N ith the original thereof on file in my office, and the same is a correct transcription thereof. WITNESS my hand officialIv as such City Cleric and the Corporate seal of the City this day of Citv Cleric