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HomeMy WebLinkAbout85-232 - ADMIN Resolution - City Council - 1985/12/16RESOLUTION NO. 85-232 RESOLUTION AUTHORIZING A PROJECT AND HOUSING PROGRAM UNDER MINNESOTA STATUTES, CHAPTER 4b2C (MUNICIPAL HOUSING PROGRAMS) AND AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE THE PROJECT AND PROGRAM AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION THEREWITH (PARK BOULEVARD TOWERS PROJECT) BE IT RESOLVED by the Council of the City of Saint Louis Park, Minnesota, as follows: 1. The Council has received a proposal from Park Boulevard Housing Limited Partnership, a Minnesota limited partnership, (the "Company") that the City undertake to finance a certain Project and multifamily rental housing program for such Project as herein described, pursuant to Chapter 462C, Minnesota Statutes (the "Act"), through the issuance by the City of its $17,000,000 Variable Rate Demand Purchase Multifamily Housing Revenue Bonds, Series 1985 (Park Boulevard Towers Project) (the "Bonds"), and in accordance with a Bond Purchase Agreement (the "Bond Purchase Agreement") between the City, the Company, and Dreyfus Tax -Exempt Money Market, Inc. (the "Bond Purchaser"). 2. The Company desires to acquire and construct a multifamily housing development consisting of an approximately 300,000 square foot building containing approximately 208 units and related improvements including parking facilities (hereinafter referred to as the "Project") in the City. The Project as described above will facilitate the development of rental housing within the community; encourage the development of affordable housing opportunities for residents of the City; encourage the development of housing facilities designed for occupancy by elderly persons and persons of low or moderate income and assist such persons in obtaining decent, safe and sanitary housing at rentals they can afford; encourage the development of blighted or underutilized land and structures within the boundaries of the City; and will otherwise further the policies and purposes of the Act; and the findings made in the Preliminary Resolution adopted by this Council on September 3, 1985 with respect to the Project are hereby ratified, affirmed and approved. 3. It is proposed that, pursuant to a Loan Agreement dated as of December 1, 1985, between the City as Lender and the Company as Borrower (the "Loan Agreement"), the City loan the proceeds of the Bonds to the Company to partially finance the costs of the Project. The loan repayments (the "Basic Payments") to be made by the Company under the Loan Agreement are fixed so as to produce revenue sufficient to pay the principal of, premium, if any, and interest on the Bonds when 1 ,a due. It is further proposed that the City assign its rights to the Basic Payments and certain other rights under the Loan Agreement to First Trust Company, Inc., in St. Paul, Minnesota (the "Trustee") as security for payment of the Bonds under an Indenture of Trust dated as of December 1, 1985 (the "Indenture") between the City and the Trustee. To furtner secure the payment of the Bonds and the interest thereon and of the purchase price of any Bonds required to be purchased under the provisions of the Indenture, the Company will enter into a Remarketing Agreement, dated as of December 1, 1985, with the City, the Trustee and Piper, Jaffray & Hopwood Incorporated (the "Remarketing Agreement"). The acquisition, construction, operation and occupancy of the Project will conform to the terms and conditions of a Regulatory Agreement (the "Regulatory Agreement") dated as of December 1, 1985 between the City, the Company and the Trustee and a Declaration of Restrictive Covenants (the "Declaration") dated as of December 1, 1985 executed by the Company and to be recorded as a covenant and restriction running with the land on which the Project is located at the time such land is acquired. 4. This Council, by action taken on September 3, 1985, adopted a resolution giving preliminary approval to a proposal to finance a project substantially the same as the Project; and on December 2, 1985 the Minnesota Housing Finance Agency gave approval to the proposed financing program for the 12 Project. An additional public hearing on the Project to satisfy the requirements of Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code"), and the regula- tions promulgated thereunder, was held on December 2, 1985, after notice was duly published all as required by the Code at which public hearing all those appearing who so desired to speak were heard. 5. Pursuant to the preliminary approval of the Council, forms of the following documents have been submitted to the Council for approval: (a) The Loan Agreement. (b) The Indenture. (c) The Bond Purchase Agreement. (d) The Regulatory Agreement. (e) The Declaration (not executed by the City). (f) The Remarketing Agreement. 6. It is hereby found, determined and declared that: (a) the Project described in the Loan Agreement and Indenture referred to above constitutes a Project authorized by the Act and the financing program for the Project is authorized by the Act; (b) the purpose of the Project and the program for the Project is, and the effect thereof will be, to promote the public welfare by the acquisition, construction and equipping of rental housing facilities for assisting persons of low and moderate income and elderly persons within the City to obtain decent, safe and sanitary housing at rentals they can afford; (c) the acquisition, construction and installation of the Project, the issuance and sale of the Bonds, the execution and delivery by the City of the Loan Agreement, the Indenture, the Bond Purchase Agreement, the Regulatory Agreement and the Remarketing Agreement (collectively the "Agreements"), and the performance of all covenants and agreements of the City contained in the Agreements, and of all other acts and things required under the constitution and laws of the State of Minnesota and City Charter to make the Agreements valid and binding obligations of the City in accordance with their terms, are authorized by the Act; (d) it is desirable that the Company be authorized, in accordance with the provisions of the Act and subject to the terms and conditions It set forth in the Loan Agreement, Regulatory Agree- ment and Declaration, which terms and conditions the City determines to be necessary, desirable and proper, to acquire and install the Project by such means as shall be available to the Company and in the manner determined by the Company, subject to the terms of the aforesaid agreements; (e) it is desirable that the Bonds be issued by the City upon the terms set forth in the Indenture; (f) the Basic Payments under the Loan Agreement are fixed to produce revenue sufficient to provide for the prompt payment of principal of, premium, if any, and interest on the Bonds issued under the Indenture when due, and the Loan Agreement, Indenture and Regulatory Agreement also 11 provide that the Company is required to pay all z expenses of the operation and maintenance of the Project, including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the Project Premises and payable during the term of the Loan Agreement, Indenture and Regulatory Agreement; (g) as provided in the Loan Agreement and Indenture, the Bonds are not to be payable from or charged upon any funds other than the revenues pledged to the payment thereof; the City is not subject to any liability thereon; no holder of any Bonds shall ever have the right to compel any exercise by the City of its taxing powers to pay any of the Bonds or the interest or premium, if any, thereon, or to enforce payment thereof against any property of the City except the interests of the City in the Loan Agreement which have been assigned to the Trustee under the Indenture; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the interests of the City in the Loan Agreement which have been assigned to the Trustee under the Indenture; the Bonds shall recite that the Bonds are issued without moral obligation on the part of the state or its political subdivisions, and that the Bonds, including interest thereon, are payable solely from the revenues pledged to the payment thereof Iff and that the Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; and (h) public hearings on the Project were duly held by the City Council on July 1, 1985 and July 15, 1985; on December 2, 1985, a subsequent public hearing was duly held by the City Council in order to satisfy the requirements of Section 103(k) of the Code. 6. Subject to the approval of the City Attorney and the provisions of Section 9 of this Resolution, the forms of the Agreements and exhibits thereto are approved substantially I is, in the form submitted and on file in the office of the City Clerk. The Agreements, in substantially the form submitted, are directed to be executed in the name and on behalf of the City by the Mayor and the City Manager. Any other documents and certificates necessary to the transaction described above shall be executed by the appropriate City officers. Copies of all of the documents necessary to the transaction herein described shall be delivered, filed and recorded as provided herein and in said Loan Agreement and Indenture. ,✓ 7. The City shall proceed forthwith to issue its Bonds, in the form and upon the terms set forth in the Indenture and this Resolution. The Bonds shall initially bear interest at a rate of fifty-eight percent (584) of tue Prime Rate Index (as defined in the Indenture) per annum. The Bond Purchaser shall purchase the Bonds for $17,000,000. The offer of the Bond Purchaser to so purchase the Bonds is hereby accepted. The Mayor and City Manager are authorized and directed to prepare and execute the Bonds as prescribed in the Indenture and to deliver them to the Trustee for authentication and delivery to the Bond Purchaser. 8. The Mayor and City Manager and other officers of the City are authorized and directed to prepare and furnish to the Bond Purchaser certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required to show the facts relating to the legality of the Bonds as such facts appear from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. 9. The approval hereby given to the various documents referred to above includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City Attorney and the City officials authorized herein to execute said documents prior to their execution; and said City Attorney and City officials are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. In the absence (or inability) of the'officials authorized herein to execute any of the documents herein referred to, the documents may be executed by any officer or member of the City acting in their behalf. Adopted by the City Council on December 16, 1985. W or Attest C y C r Reviewed for Administration: Approved as to form an legality l �itynager City Attorney