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HomeMy WebLinkAboutCity Council Resolution 2000-172City of Plymouth Resolution 2000-172 Resolution Giving Approval to a Proposed Housing Program and The Proposed Issuance Therefor of a Revenue Bond at the Request of Hammer Residences, Inc. Pursuant to a Joint Powers Agreement to be Entered into in Connection Therewith WHEREAS, by the provisions of Minnesota Statutes, Chapter 462C, as amended (the "Housing Programs Act"), the City Council of the City of Plymouth, Minnesota (the "City"), is authorized to plan, administer, issue and sell revenue bonds or obligations to make or purchase loans to finance one or more multifamily housing developments within its boundaries, which revenue bonds or obligations shall be payable solely form the revenues of the development. Pursuant to Section 462C.07, Subdivision 1 of the Housing Programs Act, in the purchase or making of multifamily housing loans and the issuance of revenue bonds or other obligations, the City may exercise within its corporate limits any of the powers the Minnesota Housing Finance Agency may exercise under Minnesota Statutes, Chapter 462A, without limitation under the provisions of Minnesota Statutes, Chapter 475. WHEREAS, the City has received a request from Hammer Residences, Inc., a Minnesota nonprofit corporation (the "Borrower"), that the City approve a housing program (the "Program") pursuant to the Housing Programs Act, which provides for the City of Wayzata, Minnesota (the "Proposed Issuer"), or one of the other Participating Jurisdictions described below, if so determined by the Issuer and the other Participating Jurisdictions (the "Issuer"), to issue a revenue bond (the "Bond") in an aggregate principal amount not to exceed $2,500,000, all pursuant to Minnesota Statutes, Section 471.59 (the "Joint Powers Act"), and the Housing Programs Act; and WHEREAS, a portion of the proceeds of the Bond (the "Plymouth Portion") would be loaned to the Borrower, to finance and refinance the costs of refinancing of existing mortgage indebtedness of the Borrower incurred in connection with the facilities located at 10805 — 38th Place North, 18115 — 30th Avenue North, and 18300 — 26th Avenue North, Plymouth, Minnesota, together with the rehabilitation of the facilities (to the extent required by applicable law) (the "Plymouth Program"); and WHEREAS, a copy of the Plymouth Program has been presented to this Council and is ordered placed on file with the City Clerk; and WHEREAS, the Plymouth Program has been submitted to the Metropolitan Council for review and comment as required by the Housing Programs Act; and WHEREAS, proceeds of the Bond not constituting a part of the Plymouth Portion would be applied to finance or refinance costs of acquiring, constructing, equipping and furnishing facilities of the Borrower (such programs, together with the Plymouth Program, all collectively referred to as the "Programs" or the Program"), located in one or more of the other Participating Jurisdictions (defined below); and WHEREAS, the Joint Powers Act provides that one or more governmental units of the State of Minnesota, by agreement entered into with one or more other governmental units of the State of Minnesota, or another State, through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties, and may provide for the exercise of such power by one of the participating governmental units on behalf of the other participating units; WHEREAS, pursuant to the Joint Powers Act, the Borrower has requested that the City enter into a Joint Powers Agreement (the "Joint Powers Agreement") with the other jurisdictions listed in Exhibit A (such jurisdictions collectively referred to as the "Participating Jurisdictions") in connection with the proposed issuance of the Bond; and WHEREAS, the Borrower has agreed to reimburse the City for the costs of publication of notice of public hearing in the official newspaper of the City and a newspaper of general circulation, together with legal fees to be incurred by the City, as well as any other costs incurred by the City related to the Joint Powers Agreement; and NOW, THEREFORE, be it resolved by the City Council of the City of Plymouth, Minnesota, that: 1. As required by the Housing Programs Act, the City Council held a public hearing on Tuesday, March 21, 2000 on the issuance of the Bond and on the proposal to undertake and finance the Plymouth Program, all after publication in the official newspaper of general circulation of a notice setting forth, among other things, the time and place of hearing; stating the general nature of the Plymouth Program and an estimate of the principal amount of the Bond or other obligations to be issued to finance the Plymouth Program; and stating that all parties who appear at the public hearing shall have an opportunity to express their views with respect to the proposal. 2. It is hereby found that the financing arrangement described by the Joint Powers Agreement and the Bond will simplify and enhance the ability of the Borrower to incur tax-exempt indebtedness to finance the Plymouth Program. 3. The Borrower will be required to pay all the expenses of the City paid or incurred with respect to the Plymouth Program and to indemnify the City for any potential liability incurred by the City with respect to the Plymouth Program. 4. The Plymouth Program and the issuance of a revenue bond by the Issuer to finance the Plymouth Program, are hereby approved, subject only to final approval and authorization by the Issuer thereof, and agreement by the Borrower and the Lender, as to the details of the Bond and provision for their payment. 5. In no event shall the Bond ever be payable from or charged upon any funds of the City other than amounts payable under the revenue agreements which are to be pledged to the payment thereof, no holder of the Bond shall ever have the right to compel the exercise of the taxing power of the City to pay the Bond or the interest thereon, nor enforce the payment thereof against any property of the City other than the City's interest in the Plymouth Program's facilities; the Bond shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; and the Bond does not constitute an indebtedness of the City within the meaning of any constitutional, statutory, or charter limitation. 6. The Borrower is hereby authorized to enter into such contracts, in its own name and not as agent for the City, as may be necessary for the Plymouth Program by any means available to it and in the manner it determines, without advertisement for bids as may be required for the acquisition or construction of municipal facilities, but the City shall not be liable on any such contracts. 7. Pursuant to a request by the Borrower that the Issuer issue its revenue bond in an aggregate principal amount not to exceed $2,500,000, with not more than $500,000 thereof constituting the Plymouth Portion, the City is hereby authorized and one or more officers are hereby directed to enter into the Joint Powers Agreement with the other Participating Jurisdictions, under the provisions of the Joint Powers Act, and the form of such Joint Powers Agreement has been placed on file in the offices of the City. The form of the Joint Powers Agreement, as currently on file, is hereby approved and the Joint Powers Agreement, in such form, but subject to such modifications thereto as shall be approved by the officer or officers executing the same, which approval shall be conclusively evidenced by the execution thereof, shall be executed and delivered by one or more officers of the City. Adopted this 21st day of March, 2000. Attest: Sandra R. Paulson, City Clerk Joy Tierney, Mayor EXHIBIT A (Participating Jurisdictions) City of Maple Grove, Minnesota 2. City of Minnetonka, Minnesota City of New Hope, Minnesota 4. City of Plymouth, Minnesota 5. City of St. Louis Park, Minnesota 6. City of Wayzata, Minnesota