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