HomeMy WebLinkAbout6502 - ADMIN Resolution - City Council - 1980/02/25FEBRUARY 25, 1980
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RESOLUTION NO. 6502
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROPOSED MORTGAGE FINANCE PROGRAM
WHEREAS, the Legislature of the State of Minnesota enacted Laws
of Minnesota 1979, Chapter 306, Sections 1-8, (the "Act") authorizing
cities within the State of Minnesota to issue revenue bonds or obliga-
tions to finance programs of making or purchasing mortgage loans to
finance the acquisition of single family housing by persons and families
of low and moderate income; and
WHEREAS, pursuant to provisions of the Act, prior to issuing any
revenue bonds or obligations for the purpose of financing programs of
making or purchasing mortgage loans for such persons or families of
low and moderate income, the City of St. Louis Park (the "City") must
first prepare and adopt a housing plan in accordance with the provisions
of the Act, and the City adopted such a housing plan on October 2, 1979;
and
WHEREAS, the City, pursuant to provisions of the Act, adopted
on October 2, 1979 a program, as part of its housing plan, providing
for the issuance up to $48,883,000 of revenue bonds to finance residen-
tial mortgage loans; and
WHEREAS, the City intends to provide a program for the issuance
of such bonds and the financing of such mortgage loans; and
WHEREAS, the City wishes to provide for the development of such
a program and the negotiation of a contract or contracts for the sale
of such bonds, and in connection therewith has had conferences with
Miller & Schroeder Municipals, Inc. of Minneapolis;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
St. Louis Park:
Section 1. Miller & Schroeder Municipals, Inc. is hereby author-
ized and selected to assist the City in developing the program for
the offer and sale of revenue bonds to finance residential mortgages
to be originated in such manner as the City and Miller & Schroeder
Municipals, Inc. shall reasonably determine, with assistance of such
mortgage lenders as may be selected to participate in such program.
Section 2. In consideration of Miller & Schroeder Municipals, Inc.
services in assisting the City in the development of such program, such
bonds shall be sold to Miller & Schroeder Municipals, Inc. or a group
of underwriters represented by Miller & Schroeder Municipals, Inc.,
pursuant to such terms and conditions, which terms and conditions shall
be embodied in a bond purchase agreement, as shall be negotiated in
good faith by the City and Miller & Schroeder Municipals, Inc. (the sale
of such bonds to Miller & Schroeder Municipals, Inc. shall constitute
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the sole compensation for its services). The City shall be under
no obligation to use, and shall not use, any of its general funds
in connection therewith. In the event that Miller & Schroeder
Municipals, Inc. does not purchase such bonds, the City will not
be required to pay Miller & Schroeder Municipals, Inc. any compen-
sation for services or out of pocket expenses incurred by Miller
& Schroeder Municipals, Inc. or third parties on behalf of Miller
& Schroeder Municipals, Inc. In the event that Miller & Schroeder
Municipals, Inc. does purchase such bonds all fees and expenses of
Miller & Schroeder Municipals, Inc. and the City in connection
with the implementation of the City's program will be paid in such
manner and upon such terms and conditions as will be set forth in
the bond purchase agreement.
Section 3. The issuance of the bonds pursuant to the program
to be developed by the City is subject in all respects to the
approval of the City, acting in good faith, of all agreements and
other documents reasonably necessary to complete such issuance.
Section 5. This Resolution shall become effective immediately
upon its adoption and approval.
Adopted: February 25,1980.
Attest:
0) W,7--016,21
is McQuaid , Mayor
ministration : Approve 51 as to form and legality:
City Attorney