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HomeMy WebLinkAbout6386 - ADMIN Resolution - City Council - 1979/10/021 i RESOLUTION NO. 6386 RESOLUTION APPROVING HOUSING PLAN AND PROGRAM 1979-1981 WHEREAS, the Laws of Minnesota authorized the City to develop and administer programs of making or purchasing mortgage loans to finance the acquisition of single family housing and to finance construction and mortgage loans for multiple family housing located anywhere within its boundaries for occupancy primarily by persons of low and moderate income, and WHEREAS, the City has prepared a Housing Plan and Program which was reviewed by the City's Community Relations Commission, Planning Commission, and Housing and Redevelopment Authority, and WHEREAS, the City has held a public hearing on said Housing Plan and Program on September 4, September 17 and October 2, 1979; and WHEREAS, the City has determined that a need exists for locating middle income households in older areas of the City of St. Louis Park and that many owners and would-be purchasers of single family houses are unable to either afford mortgage credit at the market rate of interest or obtain mortgage credit because the mortgage market is severely restricted, and WHEREAS, the City has considered the information contained in the Housing Plan and Program including particularly (1) the availability and afforda- bility of other government housing programs; (2) the availability and affordability of private market financing for the acquisition of existing and newly constructed housing units; (3) an analysis of population and employment trends and projections of future population trends and future employment needs; (4) the recent housing trends of the City of St. Louis Park and future housing needs in the City of St. Louis Park and (5) an analysis of how the program will meet the needs of low and moderate income persons and families residing and expected to reside in the°C,ity of St. Louis Park, and WHEREAS, the City Council has further considered (1) the amount, timing and sale of bonds to finance the estimated amounts of mortgage loans to be made under the program, to fund the appropriate reserves and to pay the costs of issuance; (2) the number and qualifications of lenders eligible to participate in the program; (3) the method for monitoring the implementation by participants to insure that the program is con- sistent with the Housing Plan of the City of St. Louis Park and its objectives; (4) the method of administering, servicing and supervising the program; (5) the cost to the City of St. Louis Park, including future administrative expenses; (6) the restrictions on the purchase prices of housing units to be financed under the program and the limit on mortgage loan amounts to be provided thereunder; (7) the maximum permitted income of persons or families receiving financing under the program; and (8) certain other limitations. NOW THEREFORE BE IT RESOLVED that the City of St. Louis Park hereby adopts the Housing Plan and Program 1979-1981 and authorizes the City Manager to transmit said Housing Plan and Program to the Metropolitan Council and the Minnesota Housing Finance Agency for review or comment. Adopted by the City Council October 2, 1979 ATTEST: ,r75v,zetael t 1 rk y e ewed for, administration: Approved as to form and legality: /' A, /I 'y Manager Cityey -2 Bonds (Excelsior Partners Project) (the "Bonds") in the aggregate principal amount not to exceed $15,000,000 and (ii) the use of the Bond proceeds by the Issuer to make a loan (the "Loan") to Excelsior Housing Partners 100 Limited Partnership, a Minnesota limited partnership (the "Developer"), pursuant to a loan agreement dated as of the date hereof between the Issuer and the Developer (the "Loan Agreement") to finance construction of a multifamily rental housing development (the "Project"); and WHEREAS, the Issuer has developed a Housing Plan by Resolution No. 6386 dated October 2, 1979, pursuant to and in conformity with the Acts (the "Housing Plan"), after public hearing thereon and after one publication of notice in a newpaper circulating generally in the City at least thirty (30) days before the date of the hearing, as required by the Acts; and WHEREAS, the Issuer by the passage of Resolution No. 7086 dated March 15, 1982 amended its Housing Plan to include a multifamily rental housing bond program; and WHEREAS, the Housing Plan, as amended, was submitted on April 8, 1982 to the Metropolitan Council, which reviewed the Housing Plan and forwarded its comments to the Issuer on April 13, 1982, which comments were reviewed and discussed by the Issuer; and WHEREAS, the Issuer adopted a housing program (the "Program") for the Project by Resolution No. 84-174 dated October 15, 1984, pursuant to and in conformity with the Acts after public hearing thereon and after one publication of notice in a newpaper circulating generally in the City at least fifteen (15) days before the date of the hearing, as required by the Act; and WHEREAS, the Minnesota Housing Finance Issuer reviewed and approved the Program, as required by the Acts; and WHEREAS, the Issuer proposes to finance the undertaking of said Project under the Act by the issuance of the Bonds of the Issuer under this resolution as hereinafter defined; and WHEREAS, the Bonds will be issued under an Indenture of Trust, as hereinafter defined, in this resolution and will be secured by a mortgage and lien on said Project and a pledge and assignment of all rights and interest on the Issuer in and to the Loan Agreement, as hereinafter defined, and of the revenues derived by the Issuer from the Loan Agreement, all in accordance with the terms of the Indenture of Trust, and said Bonds and the interest on said Bonds shall be payable solely from the revenue pledged therefor and the Bonds shall not constitute a debt of the Issuer within the meaning of any constitutional or statutory limitation nor shall constitute nor give rise to a pecuniary liability of the Issuer or a charge against its general credit or taxing powers and shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the Issuer other than the Issuer's interest in said Project; and WHEREAS, in order to comply with the requirements of Section 103(1) of the Internal Revenue Code of 1954, as amended, the City Council has held a public hearing, after publication of notice thereof in a newspaper of general circulation in the City at least fourteen (14) days before the hearing; and 2 1 1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT LOUIS PARK, MINNESOTA, AS FOLLOWS: 1. The Issuer acknowledges, finds, determines, and declares that the preservation of the quality of life in the City is dependent upon the maintenance, provision, and preservation of an adequate housing stock which is affordable to persons and families of low or moderate income, that accomplishing this is a public purpose, and that many would-be providers of housing units in the City are either unable to afford mortgage credit at present market rates of interest or are unable to obtain mortgage credit because the mortgage credit market is severely restricted. 2. For the purpose of financing the acquisition, construction and installation of the Project, there is hereby authorized the issuance, sale and delivery of the Bonds in a principal amount not to exceed $15,000,000. The Bonds shall bear interest at the rates, shall be numbered, shall be dated, shall mature, shall be in such principal amount, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other details and provisions as are prescribed in the Indenture of Trust, dated as of the date of closing (the "Indenture"), between the Issuer and First Trust Company of Saint Paul as trustee (the "Trustee"), in the form now on file with the Issuer. 3. The Bonds shall be special obligations of the Issuer payable solely from the revenues of the Project in the manner provided in the Indenture. The City Council of the Issuer hereby authorizes and directs the Mayor, the City Manager and the City Clerk of the Issuer (the "Mayor", the "Manager" and the "Clerk", respectively) to execute and deliver the Indenture, by and between the Issuer and the Trustee, and to deliver to said Trustee the Indenture, and hereby authorizes and directs the execution of the Bonds in accordance with the Indenture, and hereby provides that the Indenture shall provide the terms and conditions, covenants, rights, obligations, duties and agreements of the bondholders, the Issuer and the Trustee as set forth therein. All of the provisions of the Indenture, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Indenture shall be substantially in the form on file with the Issuer, which is hereby approved, with such necessary and appropriate variations, omissions and insertions as do not materially change the substance thereof, or as the Mayor, in his discretion, shall determine, and the execution thereof by the Mayor shall be conclusive evidence of such determination. 4. The Mayor, Manager and Clerk are hereby authorized and directed to execute and deliver the Loan Agreement (the "Loan Agreement") by and between the Issuer and Excelsior Partners Limited Partnership, a Minnesota limited partnership (the "Developer") the Remarketing Agreement by and among the Issuer, the Trustee, the Developer and Piper Jaffray do Hopwood Incorporated as Remarketing Agent, the Regulatory Agreement, by and among the Issuer, the Trustee, and the Developer (the "Regulatory Agreement"), and the Declaration of Restrictive Covenants executed by the Issuer and the Developer (the "Declaration"). All of the provisions of the Loan Agreement, the Remarketing Agreement and the Regulatory Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the 3 same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Loan Agreement, the Remarketing Agreement, the Declaration and the Regulatory Agreement shall be substantially in the forms on file with the Issuer which are hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor, in his discretion, shall determine, and the execution thereof by the Mayor shall be conclusive evidence of such determination. 5. The Bonds shall be revenue obligations of the Issuer the proceeds of which shall be disbursed pursuant to the Indenture and a Disbursing Agreement which is required to be executed prior to the Disbursement Date (as defined in the Indenture) by the Developer, the Trustee, and a disbursing agent (the "Disbursing Agreement''), and the principal, premium and interest on which shall be payable solely from the proceeds of the Bonds and the Loan Agreement and, prior to the Disbursement Date, shall also be secured by a Combination Mortgage, Security Agreement and Fixture Financing Statement from the Developer to the Trustee (the ''Mortgage") and by an Assignment of Leases and Rents from the Developer to the Trustee (the "Assignment"). 6. The forms of the Disbursing Agreement, Mortgage and the Assignment of Leases and Rents are hereby approved in substantially the form on file with the Issuer. 7. The Mayor, Manager and Clerk are hereby authorized and directed to execute the Bond Purchase Agreement relating to the Bonds (the "Bond Purchase Agreement"). All of the provisions of the Bond Purchase Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Bond Purchase Agreement shall be substantially in form on file with the Issuer, which is hereby approved, with such necessary and appropriate variations, omissions and insertions as are not materially inconsistent with the form on file with the Issuer and as the Mayor, in his discretion, shall determine and execution thereof by the Mayor shall be conclusive evidence of such determination. 8. The Trustee is hereby appointed as Paying Agent and Bond Registrar for the Bonds. 9. Upon approval by the Mayor, and concurrence by the City Attorney, amendments may be made to the aforementioned documents to the extent not inconsistent with this resolution. Such approval and concurrence shall be evidenced by the execution of the aforementioned documents by the Issuer and the delivery of the opinion of the City Attorney. 10. The Mayor, City Manager and Clerk the Issuer are hereby authorized to execute and deliver, on behalf of the Issuer, such other documents as are necessary or appropriate in connection with the issuance, sale, and delivery of the Bonds, including the No -Arbitrage Certificate, and all other documents and certificates as shall be necessary and appropriate in connection with the issuance, sale and delivery of the Bonds. 11. All covenants, stipulations, obligations and agreements of the Issuer contained in this resolution and the aforementioned documents shall be deemed to 4 1 1 1 be the covenants, stipulations, obligations and agreements of the Issuer to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations and agreements shall be binding upon the Issuer. Except as otherwise provided in this resolution, all rights, powers and privileges conferred and duties and liabilities imposed upon the Issuer or the City Council by the provisions of this resolution or of the aforementioned documents shall be exercised or performed by the Issuer or by such members of the City Council, or such officers, board, body or agency thereof as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation or agreement of any member of the City Council of the Issuer, or any officer, agent or employee of the Issuer in that person's individual capacity, and neither the City Council of the Issuer nor any officer or employee executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. No provision, covenant or agreement contained in the aforementioned documents, the Bonds or in any other document related to the Bonds, and no obligation therein or herein imposed upon the Issuer or the breach thereof, shall constitute or give rise to any pecuniary liability of the Issuer or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants and representations set forth in such documents, the Issuer has not obligated itself to pay or remit any funds or revenues, other than funds and revenues derived from the Loan Agreement which are to be applied to the payment of the Bonds, as provided therein and in the Indenture. 12. Except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation, other than the Issuer or any holder of the Bonds issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provision hereof, this resolution, the aforementioned documents and all of their provisions being intended to be and being for the sole and exclusive benefit of the Issuer and any holder from time to time of the Bonds issued under the provisions of this resolution . 13. In case any one or more of the provisions of this resolution, or of the aforementioned documents, or of the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Bonds, but this resolution, the aforementioned documents, and the Bonds shall be construed and endorsed as if such illegal or invalid provision had not been contained therein. 14. The Bonds, when executed and delivered, shall contain a recital that they are issued pursuant to the Acts, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds and to the execution of the aforementioned documents to happen, exist and be performed precedent to 5 and in the enactment of this resolution, and precedent to issuance of the Bonds and precedent to the execution of the aforementioned documents have happened, exist and have been performed as so required by law. 15. The officers of the Issuer, attorneys, engineers and other agents or employees of the Issuer are hereby authorized to do all acts and things required of them by or in connection with this resolution, the aforementioned documents, and the Bonds for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Bonds, the aforementioned documents and this resolution. In the event that for any reason the Mayor, of the Issuer is unable to carry out the execution of any of the documents provided herein, any other member of the City Council of the Issuer shall be authorized to act in his capacity and undertake such execution on behalf of the Issuer with full force and effect, which executions shall be valid and binding on the Issuer. If for any reason the Manager or Clerk of the Issuer is unable to execute and deliver the documents referred to in this Resolution, such documents may be executed by a member of the City Council or the Assistant City Clerk with the same force and effect as if such documents were executed and delivered by the Manager or Clerk of the Issuer. 16. That this resolution shall be in full force and effect from and after its passage. Adopted by the City Council of the Issuer this 21st day of January, 1985. Attest: 46(P.//46,ALv Mayor Reviewed for administration: ;NA.L11 City Manager 6 Approved as to form and legality: FILL -4 5, La City Attorney