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HomeMy WebLinkAboutCity Council Resolution 2000-081CITY OF PLYMOUTH RESOLUTION NO. 2000-081 RESOLUTION CALLING FOR A PUBLIC HEARING FOR A PROJECT ON BEHALF OF HAMMER RESIDENCES, INC. AND ITS FINANCING UNDER THE MUNICIPAL HOUSING PROGRAMS ACT BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as follows: Section 1. Recitals 1.1. The City is authorized by Minnesota Statutes, Chapter 462C, as amended (the "Housing Programs Act"), to issue its revenue bond to finance multifamily housing developments within its boundaries, which revenue bond shall be payable solely from revenues of the development or other security pledged therefor. 1.2. Hammer Residences, Inc., a Minnesota nonprofit corporation and Section 501(c)(3) tax-exempt organization (the "Corporation"), has requested that the City conduct a public hearing on a proposal by the Corporation that the City of Wayzata, Minnesota (the "Issuer"), or one of the other Participating Jurisdictions (described below), acting pursuant to a joint powers agreement between the Issuer, the City of Maple Grove, Minnesota, the City of Minnetonka, Minnesota, the City of New Hope, Minnesota, the City of Plymouth, and the City of St. Louis Park, Minnesota (collectively referred to as the "Participating Jurisdictions"), issue a revenue bond pursuant to Minnesota Statutes, Section 471.59 (the "Minnesota Joint Powers Act"), and the Housing Programs Act (together with the Minnesota Joint Powers Act, collectively referred to herein as the "Acts"). 1.3. Under the proposal by the Corporation, the Participating Jurisdictions will enter into a joint powers agreement (the "Joint Powers Agreement"), pursuant to which the Issuer, or one of the other Participating Jurisdictions selected by the Participating Jurisdictions, will issue its revenue bond (the "Bond"), a portion of the proceeds of which (the "Plymouth Portion") would be loaned to the Corporation, to pay costs of financing and refinancing the Plymouth Projects described below. Proceeds of the Bond not constituting a part of the Plymouth Portion would be applied to finance or refinance cost of acquiring, constructing, equipping and furnishing facilities of the Corporation located in one or more of the other Participating Jurisdictions (such projects, together with the Plymouth Projects described below, all collectively referred to as the "Projects" or the "Project"). 1.4. The Plymouth Projects consist of the refinancing of existing mortgage indebtedness of the Corporation incurred in connection with the facility located at 10805 - 38th Place North, Plymouth, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law); the refinancing of existing mortgage indebtedness of the Corporation incurred in connection with the facility located at 18115 - 30th Avenue North, Plymouth, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law); and the refinancing of existing mortgage indebtedness of the Corporation incurred in connection with the facility located at 18300 - 26th Avenue North, Plymouth, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law). 1.5. The Project is a multifamily housing development eligible for financing by the City under the Housing Programs Act and the Corporation hereby submits to this Council as Exhibit A hereto a description of a Housing Program (the "Housing Program"), including a description of the proposed Project. 1.6. The Corporation has requested the Issuer to issue its revenue bond pursuant to the Housing Programs Act to finance all or a portion of the cost of the Project in an aggregate principal amount not to exceed $2,500,000 (the "Bond"). Section 2. Public Hearing 2.1. The Housing Programs Act provides that the City may make a loan to finance a multifamily housing development under the Housing Programs Act upon the conditions specified in Section 462C.05 of the Housing Programs Act, including a public hearing on the development after fifteen days' published notice. 2.2. Section 147(f) of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, requires that, as a condition to the exemption from federal income taxation of interest on the Bond, this Council conduct a public hearing on the proposal to undertake and finance the Project. 2.3. Pursuant to the authorities cited in Sections 2.1 and 2.2 of this Resolution, a public hearing on the proposal to undertake the Housing Program, to finance the Project, and to enter the Joint Powers Agreement is hereby called and shall be held on March 21, 2000, at 7:00 o'clock P.M., at the City Hall. The notice of the public hearing shall be in substantially the following form: NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND THE ISSUANCE OF REVENUE BONDS UNDER THE MUNICIPAL HOUSING PROGRAMS ACT, MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED CITY OF PLYMOUTH, MINNESOTA NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City Council of the City of Plymouth (the "City") on a proposal by Hammer Residences, Inc., a Minnesota nonprofit corporation (the "Borrower") that the City of Wayzata, Minnesota, acting pursuant to a joint powers agreement (the "Joint Powers Agreement") with the City, the City of Maple Grove, Minnesota, the City of Minnetonka, Minnesota, the City of New Hope, Minnesota and the City of St. Louis Park, Minnesota, issue a revenue bond to finance and refinance the costs of acquisition, construction, equipping, furnishing and rehabilitation of the projects described below, pursuant to Minnesota Statutes, Sections 462C.01 to 462C.15, as amended, together with required reserves, administrative costs, capitalized interest, and cost of bond issuance. The hearing will be held at City Hall in said City, on March 21, 2000, at 7 o'clock P.M. The proposed projects located in the City to be financed, consist of the following: Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 10805 - 38th Place North, Plymouth, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law); 2. Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 18115 - 30th Avenue North, Plymouth, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law); and Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 18300 - 26th Avenue North, Plymouth, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law) (collectively referred to as the "Plymouth Projects"). The proposed project located in Maple Grove to be financed, consists of the following: Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 6688 Lawndale Lane North, Maple Grove, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law) (referred to as the "Maple Grove Project"). The proposed projects located in Minnetonka to be financed, consist of the following: Acquisition, construction, equipping and furnishing of a residential facility for the developmentally disabled (including all related demolition costs of any existing structure incident to construction of the new facility), located at 13612 Wentworth Trail, Minnetonka, Minnesota; 2. Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 4045 Dublin Drive, Minnetonka, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law); and Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 52090 Michaele Lane, Minnetonka, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law) (collectively referred to as the "Minnetonka Projects"). The proposed projects located in New Hope to be financed, consist of the following: Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 4009 Jordan Avenue North, New Hope, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law); and 2. Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 4011 Jordan Avenue North, New Hope, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law) (collectively referred to as the "New Hope Projects"). The proposed project located in St. Louis Park to be financed, consists of the following: 2. Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 9216 - 22nd Street West, St. Louis Park, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law) (referred to as the "St. Louis Park Project"). The proposed projects located in Wayzata to be financed, consist of the following: Acquisition, construction, equipping and furnishing of a residential facility for the developmentally disabled (including all related demolition costs of any existing structure incident to construction of the new facility), located at 16325 County Road 15, Wayzata, Minnesota; and 2. Refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facility located at 401 Ridgeview Drive East, Wayzata, Minnesota, together with the rehabilitation of the facility (to the extent required by applicable law) (collectively referred to as the "Wayzata Projects"). Under the proposal, the City of Maple Grove, the City of Minnetonka, the City of New Hope, the City of Plymouth, the City of St. Louis Park and the City of Wayzata will enter into the Joint Powers Agreement, pursuant to which the City of Wayzata will issue its revenue bond (the "Bond") to provide funds for the costs of the Maple Grove Project, the Minnetonka Projects, the New Hope Projects, the Plymouth Projects, the St. Louis Park Project and the Wayzata Projects, and for related costs, including the funding of required reserves, administrative costs, capitalized interest and issuance costs. Under the Joint Powers Agreement, a principal amount of up to $150,000 will be issued for the Maple Grove Project, a principal amount of up to $700,000 will be issued for the Minnetonka Projects, a principal amount of up to $125,000 will be issued for the New Hope Projects, a principal amount of up to $500,000 will be issued for the Plymouth Projects, a principal amount of up to $115,000 will be issued for the St. Louis Park Project, and a principal amount of up to $750,000 will be issued for the Wayzata Projects, provided, however, that the aggregate principal amount of the Bond will in no event exceed $2,500,000. With respect to each of the Projects involving refinancing, proceeds of the Bond will be applied to the discharge and prepayment of existing taxable mortgage indebtedness of the Borrower. [The Projects involve assistance for housing and the Borrower employs fewer than 100 full-time equivalent employees and, thus, the issuance of the Bond is not a business subsidy within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995, as amended.] At said time and place the City Council shall give all parties who appear or submit written comments an opportunity to express their views with respect to the proposal. Dated: February 15, 2000. CITY OF PLYMOUTH, MINNESOTA 2.4. The City Clerk shall cause notice of the public hearing to be published in the official newspaper of the City and a newspaper of general circulation in the City at least once not less than fifteen (15) days prior to the date fixed for the public hearing. Passed this 15th day of February, 2000. Joy Tierney, Mayor Attest: Sandra R. Paulson, City Clerk CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Plymouth, Minnesota (the "City"), hereby certify that the attached resolution is a true copy of Resolution No. 2000-081, entitled: "RESOLUTION RELATING TO A PROJECT ON BEHALF OF HAMMER RESIDENCES, INC. AND ITS FINANCING UNDER THE MUNICIPAL HOUSING PROGRAMS ACT; CALLING FOR A PUBLIC HEARING THEREON" (the "Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a meeting on February 15, 2000, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that upon vote being taken on the Resolution at said meeting, the following Councilmembers voted in favor thereof: Councilmembers Slavik, Johnson, Bildsoe, Brown, Black, Harstad, and Mayor Tierney ; voted against the same: None abstained from voting thereon: None ; or were absent: None WITNESS my hand officially this day of , 2000. City Clerk