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HomeMy WebLinkAbout6744 - ADMIN Resolution - City Council - 1980/12/30f 1 RESOLUTION NO. 6744 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, MINNESOTA, AUTHOR- IZING THE ISSUANCE OF ITS RESIDENTIAL MORT- GAGE REVENUE BONDS, IN AGGREGATE PRINCIPAL AMOUNT OF $20,200,000, WHICH BONDS AND THE INTEREST AND PREMIUM, IF ANY, THEREON SHALL BE PAYABLE SOLELY FROM THE REVENUES OF THE PROGRAM; PRESCRIBING THE FORM OF AND AUTHORIZING THE EXECUTION OF AN INDENTURE OF TRUST; AUTHORIZING THE EXECUTION AND SALE OF THE BONDS AND DIRECTING DELIVERY THEREOF; AUTHORIZING ACCEPTANCE OF THE CONTRACT OF PURCHASE IN CONNECTION WITH THE BONDS; AUTHORIZING THE PURCHASE OF MORTGAGE LOANS AND THE CONTRACTING FOR THE ORIGINATION THEREOF; AUTHORIZING THE CONTRACTING FOR SERVICES OF A PROGRAM ADMINISTRATOR; PRESCRIBING THE FORM OF AND AUTHORIZING THE EXECUTION OF AN ORIGINA- TION AND SALE AGREEMENT AND PROGRAM AD- MINISTRATION AGREEMENT; AND PROVIDING FOR THE SECURITIES, RIGHTS AND REMEDIES OF THE HOLDERS OF SAID REVENUE BONDS. WHEREAS, the preservation of the quality of life in the City of St. Louis Park (the "City") is dependent upon the maintenance, provision, and preservation of an adequate housing stock, that accomplishing this is a public purpose, and that many would-be purchasers or providers of housing units in the City are either unable to afford mortgage credit at market rate of interest or obtain mortgage credit because the mortgage credit market is severely restricted; and WHEREAS, Minnesota Statutes, Chapter 462C (the "Act") provides that the City may develop and administer a program to purchase mortgage loans (the "Mortgage Loans") to finance housing within its boundaries by issuing its revenue bonds to carry out such financing and by pledging the Mortgage Loans and any agreements made in connection therewith as security for the payment of the principal of and interest on any such revenue bonds (the "Program"); and 1 WHEREAS, the Act provides that the City in furtherance of the Program to carry out such purpose and in the issuance of revenue bonds or other obligations in connection therewith may exercise, within the corporate limits of the City, any and all of the same powers as the Minnesota Housing Finance Agency is authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A (the "State Housing Act"); and WHEREAS, the City Council (the "Council") of the City developed a Housing Plan pursuant to and in conformity with the Act; and WHEREAS, the Council held a public hearing on the Housing Plan after one publication of notice in a newspaper circulating generally in the City at least thirty (30) days before the hearing approved the Housing Plan and forwarded the same to the Metropolitan Council for review and comment pursuant to the Act; and WHEREAS, the Metropolitan Council reviewed the Housing Plan on December 6, 1979, and forwarded its comments to the Council, which comments were reviewed and discussed by the Council; and WHEREAS, Part IV B of the Housing Plan designated as the Single Family Mortgage Revenue Bond Program (the "Housing Program"), an individual component of the Housing Plan for which an issue of revenue bonds or obligations was proposed, was developed by the City and made a part of the Housing Plan; and WHEREAS, the Act requires approval of the Housing Program by the Minnesota Housing Finance Agency (the "Agency"), which approval was given on November 25, 1980; and WHEREAS, the City Council proposes to purchase Mortgage Loans under the Program and for the financing thereof to authorize, issue and sell pursuant to the Act, the State Housing Act and the Indenture, as hereinafter defined, revenue bonds, as hereinafter defined (the "Bonds"), payable solely from the revenues of the Program; and 2 f i WHEREAS, the City proposes to enter into Mortgage Origination and Sale Agreements (the "Origination Agreements") with Banco Mortgage Company, North- land Mortgage Company, Shelard National Bank and The Lomas & Nettleton Company (the "Originators") for the origination of the Mortgage Loans and the sale thereof to First Trust Company of Saint Paul, Saint Paul, Minnesota (the "Trustee"), on behalf of the City; and WHEREAS, the City proposes to enter into a Program Administration Agreement (the "Administration Agreement") with Banco Mortgage Company (the "Program Administrator") for the provision of certain specified administration and servicing services in connection with the Program; and WHEREAS, neither the City nor the State of Minnesota or any political subdivision thereof shall be liable on the Bonds, and the Bonds shall not be a debt of the City, the State of Minnesota or any political subdivision thereof within the meaning of any constitutional or statutory limitation nor shall give rise to a charge against the general credit or taxing power of the City of St. Louis Park, the State of Minnesota or any political subdivision thereof, nor shall be payable out of any funds or properties other than those provided as security by the hereinafter defined Indenture. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, MINNESOTA: Section 1. That the City Council 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, that accomplishing this is a public purpose, and that many would-be purchasers or providers of housing units in the City are either unable to afford mortgage credit at market rates of interest or obtain mortgage credit because the mortgage credit market is severely restricted. 3 Section 2. That the City Council further finds, determines and declares that the purpose of the Program is to purchase Mortgage Loans made to finance the purchase of owner -occupied, single family housing units located anywhere within the boundaries of the City for occupancy primarily by persons of low and moderate income. Section 3. That for the purpose of financing the Program there is hereby authorized the issuance of $20,200,000 Residential Mortgage Revenue Bonds, Series 1980. The Bonds shall be dated as of December 1, 1980, bearing interest payable June 1, 1981 and semiannually thereafter on each December 1 and June 1. The Bonds shall mature on December 1 in the following years and amounts, the Bonds maturing in such years and amounts to bear interest at the annual rate set forth opposite such years and amounts: Year Amount Rate Year Amount Rate 1981 $ -0- 1989 $ 195,000 9.75 1982 -0- 1990 225,000 9.90 1983 140,000 8.50 1991 240,000 10.00 1984 155,000 8.75 1992 265,000 10.15 1985 165,000 9.00 1993 300,000 10.25 1986 160,000 9.25 1994 325,000 10.50 1987 165,000 9.400 1995 360,000 10.60 1988 185,000 9.50 2000 2,540,000 11.20 2011 12,925,000 11.70 2012 1,855,000 8.750 The Bonds shall be subject to redemption, and shall be redeemed, by operation of a sinking fund, in accordance with the provisions therefor in the Indenture (as hereinafter defined). Section 4. That the Bonds shall be special obligations of the City payable solely from the revenues of the Program, in the manner provided in the Trust Indenture dated as of December 1, 1980, between the City and the Trustee (the "Indenture"). The City Council hereby authorizes and directs the Mayor of the City 4 and the City Manager to execute and the City Clerk to attest under the corporate seal of the City the Indenture by and between the City and Trustee, and to deliver to the Trustee the Indenture, and does hereby authorize and direct the execution of the Bonds in accordance with the Indenture, and does hereby provide that the Indenture shall provide the terms and conditions, covenants, rights, obligations, duties and agreements of the bondholders, the City 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 annexed hereto, which is hereby approved, with such necessary and appropriate variations, omissions and insertions as do not change the substance thereof, as determined by the Mayor, in her discretion, and the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 5. That the Mayor and City Manager are hereby authorized and directed to accept and execute and the City Clerk to attest under the Corporate Seal of the City the Origination Agreements and, when executed and delivered as authorized herein, the Origination Agreements 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 Origination Agreements shall be substantially in the form annexed hereto which is hereby approved, with such omissions and insertions as do not change the substance thereof, as determined by the Mayor, in her discretion, and the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 6. That the Mayor and City Manager are hereby authorized and directed to accept and execute and the City Clerk to attest under the Corporate 5 Seal of the City the Program Administration Agreement and, when executed and delivered as authorized herein, the Program Administration Agreement 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 Program Administration Agreement shall be substantially in the form annexed hereto which is hereby approved, with such omissions and insertions as do not change the substance thereof, as determined by the Mayor, in her discretion, and the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 7. That all covenants, stipulations, obligations and agreements of the City contained in this resolution or contained in the Indenture shall be deemed to be the covenants, stipulations, obligations and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations and agreements shall be binding upon the City. Except as otherwise provided in this resolution, all rights, powers and privileges conferred and duties and liabilities imposed upon the City, the Mayor and the City Council members by the provisions of this resolution or of the Indenture shall be exercised or performed by the City, the Mayor and the City Council members, 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 Indenture shall be deemed to be a covenant, stipulation, obligation or agreement of any officer, agent or employee of the City in that person's individual capacity, and neither the Mayor, City Council members 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. 6 Section 8. That except as herein otherwise expressly provided, nothing in this resolution or in the Indenture expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation other than the City, the holders of the Bonds issued under the provisions of this resolution and the Indenture, and the Trustee, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provision hereof or of the Indenture or any provision thereof, this resolution, the Indenture and all of their provisions being intended to be and being for the sole and exclusive benefit of the City and the holders from time to time of the Bonds issued under the provisions of this resolution and the Indenture. Section 9. That in case any one or more of the provisions of this resolution or of the Indenture 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 Indenture or of the Bonds, but this resolution, the Indenture and the Bonds shall be construed as if such illegal or invalid provision had not been contained therein. The terms and conditions set forth in the Indenture, the pledge of revenues derived from the Program referred to in the Indenture, the pledge of collateral derived from the Program referred to in the Indenture, the creation of the funds provided for in the Indenture, the provisions relating to the handling of the proceeds derived from the sale of the Bonds pursuant to and under the Indenture and the handling of said revenues, collateral and other monies are all commitments, obligations and agreements on the part of the City contained in the Indenture, and the invalidity of the Indenture shall not affect the commitments, obligations and agreements on the part of the City to create such funds and to handle said revenues, other monies and proceeds of the Bonds for the purposes, in the manner and according to the terms and conditions fixed in the Indenture, it 7 being the intention hereof that such commitments on the part of the City are as binding as if contained in this resolution separate and apart from the Indenture. Section 10. 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 Indenture to happen, exist and be performed precedent to and in the enactment of this resolution, and precedent to the issuance of the Bonds and precedent to the execution of the Indenture have happened, exist and have been performed as so required by law. Section 11. That the Mayor and City Council members, officers of the City, attorneys and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution and the Indenture for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Bonds, the Indenture and this resolu- tion. Section 12. That the City hereby approves the form and authorizes the use by the Underwriter in connection with the sale of the Bonds of the Official Statement, dated December 30, 1980 (the "Official Statement"), and hereby authorizes and directs the Mayor to execute and deliver copies thereof to the Underwriter and hereby ratifies and consents to the use by the Underwriter, prior to the date thereof, of the form of the Preliminary Official Statement, dated December 17, 1980 (the "Preliminary Official Statement"). The Official Statement and the Preliminary Official Statement are the sole materials authorized by the City for use in connection with the offer and sale of the Bonds. Section 13. That this resolution shall be in full force and effect from and after its passage. 8 Adopted by the City Council December 30, 1980. REVIEWED FOR ADMINISTRATION: /-&d'e& (fil :a1/6ez-z-te Mayor APPROVED AS TO FORM AND LEGALITY: f;Qin„,_ 8IV\'‘ALA City Manager ” City A orney 9