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HomeMy WebLinkAbout85-34 - ADMIN Resolution - City Council - 1985/03/11I RESOLUTION NO. 85-34 AUTHORIZING THE EXECUTION AND DELIVERY OF THE AMENDMENT NUMBER ONE TO REGULATORY AGREEMENT AND THE AMENDMENT NUMBER ONE TO DECLARATION OF RESTRICTIVE COVENANTS FOR THE CITY OF ST. LOUIS PARK'S $5,000,000 RENTAL HOUSING DEVELOPMENT REVENUE 13OND (THE FIRST NATIONAL BANK OF - SAINT PAUL/FDIC-PARK POINTE PROJECT.) WHEREAS, the City of St. Louis Park (the "City") is authorized pursuant to provisions of Minnesota Statutes, Chapter 462C, to undertake programs for public purposes, including financing multifamily rental developments to provide decent, safe and sanitary housing for persons of low and moderate income at rentals they can afford; and WHEREAS, pursuant to Resolution Number 7363, adopted April 4, 1983, the City Council of the City has heretofore determined to adopt and implement a Rental Housing Development Revenue Bond Program (the "Program") under which the City has made a deposit with the First National Bank of Saint Paul (the "Lender") in consideration for which the Lender has made a mortgage loan to provide financing for a multifamily rental residential development located within the City of St. Louis Park (the "City"), to be occupied primarily by persons of low and moderate income within the meaning of Section 103(b)(12)(c) of the Internal Revenue Code of 1954; as amended (tne "Code"), and to be acquired, constructed and occupied in conformance with the requirements of Minnesota Statutes, Chapter 462C (the "Housing Act") and in conformance with the provisions of Section 103(b)(4)(A) of the Code and the regulations promulgated thereunder, all for the public purpose of assisting persons of low and moderate income within the City to obtain decent, safe, sanitary and affordable housing; and WHEREAS, the City has issued, sold and delivered its Rental Housing Development Revenue Bonds (The First National Bank of Saint Paul/FDIC - Park Pointe Project) (the "Bonds") in the aggregate principal amount of $5,000,000 pursuant to an Indenture of Trust, dated as of April 1, 1983, by and between the Issuer and First Trust Company of Saint Paul, as Trustee (the "Indenture") to obtain moneys to carry out the Program, to establish certain reserves for the benefit of the holders of the Bonds and to pay the costs of issuing the Bonds, all under and in accordance with the Constitution and laws of the State of Minnesota; and WHEREAS, in order to implement the Program, the City and the Lender, simultaneously with the execution and delivery of the Indenture, entered into a Deposit Agreement, dated as of April 1, 1983, by and between the City and the Lender (the "Deposit Agreement"), pursuant to which the City made, and the Lender accepted, a deposit in the principal amount of $5,000,000 in consideration for which the Lender made a loan to Park Pointe Limited Partnership (the "Developer") (the "Developer Loan") to provide financing for a multifamily rental residential development (the "Development"); and M WHEREAS, the Indenture and the Deposit Agreement required, as a condition of making the Developer Loan, the execution and delivery of a Regulatory Agreement, dated as of April 1, 1983, between and among the City, the Lender and the Developer (the "Regulatory Agreement") and the execution and delivery by the Developer of a Declaration of Restrictive Covenants, dated as of April 1, 1983 (the "Declaration"); and WHEREAS, the Developer has proposed that certain changes, alterations and amendments be made to the Regulatory Agreement, as set forth in the Amendment Number One to Regulatory Agreement (the "Amendment") between and among the City, the Trustee, and the Developer, in order that the Regulatory Agreement comport with 'Minnesota Statutes Section 462C.05, subd. 2, requiring that the Development shall be designed to be affordable to Qualifying Tenants and Moderate Income Tenants, as defined in the Regulatory Agreement; and WHEREAS, the Developer has proposed that certain changes, alterations and amendments be made to the Declaration of Restrictive Covenants as set forth in this Amendment Number One to Declaration of Restrictive Covenants (the "Amendment") in order that the Declaration of Restrictive Covenants comport with Minnesota Statutes Section 462C.05, Subd. 2, requiring that the Development shall be designed to be affordable to Qualifying Tenants and Moderate Income Tenants, as defined in the Regulatory Agreement, and in order to comply with the Regulatory Agreement as amended; and WHEREAS, the proposed changes, alterations, and amendments to the Regulatory Agreement and the Declaration will comply with the authorization of the City pursuant to the provision of Minnesota Statutes, Chapter 462C, to undertake the financing of m,lltifamily family rental developments to provide decent, safe, and sanitary housing for persons of low and moderate income at rentals they can afford; and WHEREAS, Section 16 of the Regulatory Agreement and Section 10 of the Declaration provide that the Regulatory Agreement and the Declaration shall be amended only by a written instrument executed by the parties thereto, and only upon receipt of an opinion of Bond Counsel, that such amendments or revisions will not adversely affect the exclusion from federal and Minnesota income taxation of the interest on the Bonds or the validity of the Bonds under state law; and WHEREAS, Section 16 of the Regulatory Agreement and Section 10 of the Declaration provide that an agreement of the City and the Trustee to any amendments to the Regulatory Agreement or the Declaration shall be given only in accordance with the provisions of Article YI of the Indenture, which provides in Section 11.01(8) that the City and Trustee shall, without the consent of or notice to the Owners of the Bonds, consent to any amendment, change or modification of the Agreement which, in the judgement of the Trustee, is not to the prejudice of Trustee or the Owners of the Bonds; and WHEREAS, in accordance with the requirements of Section 16 of the Regulatory Agreement, Section 10 of the Declaration and Article YI of the Indenture, the City, the Trustee and ' the Developer have agreed to and approved the proposed changes, alterations, modifications, and amendments to the Regulatory Agreement and the Declaration, as set forth in the Amendment Number 1 to Regulatory Agreement and the Amendment Number 1 to Declaration. i NOW, THEREFORE, be it resolved by the City Council of the City of St. Louis Park: 1. The the City Council of the City finds, determines and declares that the Project will be affordable to persons and families of low and moderate income and that the changes, alterations, modifications and amendments to the Regulatory Agreement and the Declaration, as set forth in the Amendment Number 1 to Regulatory Agreement and the Amendment Number 1 to Declaration of Restrictive Covenants (the "Amendments") are in the best interest of the City and will help to promote the availability of affordable housing to persons of low and moderate income in the City in accordance with the Housing Act. 2. That the Mayor and the City Manager of the City (the "Mayor" and the "City Manager") are authorized and directed to execute and the City Clerk of the City (the "City Clerk") is authorized and directed to attest under the corporate seal of the City the Amendment Number One to Regulatory Agreement and the Amendment Number One to Declaration of Restrictive Covenants in the forms thereof now on file with the City with such necessary and appropriate omissions, modifications, insertions and additions as are not materially inconsistent with the forms of the Amendments now on file with the City, consistent with the Act, as the Mayor in his discretion shall determine. The execution of the Amendments by the Mayor shall be conclusive evidence of such determination. 3. That the officers and other agents or employees of hereby authorized to do all acts and things required of them by or with this resolution, the Amendments, and the Bonds for the full, complete performance of all the terms, covenants, and agreements the Bonds, the Amendments, and this resolution. the City are in connection punctual, and contained in 4. That this resolution shall be in full force and effect from and after its date or passage. Adopted by the City Council this 11th day o ATTEST- Reviewed TT 'ST: Cit er Reviewed for Administration: 9. City Manager f March 19 5. Mayor Approved as to form and legality: City torney