HomeMy WebLinkAbout87-199 - ADMIN Resolution - City Council - 1987/11/16CITY OF ST. LOUIS PARK, MINNESOTA
RESOLUTION NO. 87-199
AUTHORIZING THE EXECUTION AND DELIVERY OF A
SUPPLEMENTAL INDENTURE OF TRUST RELATING TO THE CITY
OF ST. LOUIS PARK, MINNESOTA, $8,715,000 MULTIFAMILY
HOUSING REVENUE REFUNDING BONDS (OAKMONT PARTNERS
PROJECT), SERIES 1987.
WHEREAS, pursuant to the laws of the State of Minnesota, particularly,
Minnesota Statutes, Chapter 462C, as amended (the "Acts"), the City of St. Louis
Park, Minnesota (referred to herein as the "Issuer" or the "City") is authorized to
carry out the public purposes described therein and contemplated thereby by
issuing its revenue bonds to defray, in whole or in part, the development costs of a
rental housing development, and by entering into any agreements made in
connection therewith and pledging them as security for the payment of the
principal of and interest on any such revenue bonds; and
WHEREAS, the Acts provide that the Issuer may exercise any and all of the
same powers as are contained in the Acts, including the powers of the Minnesota
Housing Finance Agency under the provisions of Minnesota Statutes, Chapter 462A,
as amended, (the "State Housing Act"); and
WHEREAS, the City Council (the "Council") of the Issuer has developed and
adopted the Housing Plan for Local Housing Bonds for the City of St. Louis Park,
Minnesota as amended on September 3, 1985 (the "Housing Plan") in compliance
with Minnesota Statutes, Chapter 462C; and
WHEREAS, the Acts define the term "multifamily housing development" to
include a multifamily rental housing development in which at least 20 percent of
the dwelling units are held for occupancy by families or individuals with adjusted
gross incomes not in excess of 80% of the median family income estimated by the
United States Department of Housing and Urban Development for the St. Louis
Park area; and
WHEREAS, the Issuer and representatives of Oakmont Development Limited
Partnership, a Minnesota limited partnership (the "Developer"), have prepared a
program for the issuance of bonds by the Issuer to make a loan to the Developer to
finance the acquisition and construction of a multifamily rental housing facility
(the "Program"), located at the Northeast corner of the Intersection of West 35th
Street and Pennsylvania Avenue in the City, in accordance with the Acts and the
requirements of the Local Bond Program Procedural Guide for the Submission of
Local Housing Programs to the Minnesota Housing Finance Agency; and
WHEREAS, plursuant to the Acts, the State Housing Act and Resolution
Number 85-235 of the Issuer, adopted December 16, 1985, the Issuer issued its
Housing Development Revenue Note (Oakmont Place Project), Series 1985, in the
aggregate principal amount of $8,715,000 payable from the revenues of the
Program (the "Note"); and
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WHEREAS, subsequent to the issuance of the Note the Developer requested
that the Issuer issue its $8,715,000 Multifamily Housing Revenue Refunding Bonds
(Oakmont Partners Project), Series 1987 (the "Series 1987 Bonds") to refund the
entire outstanding principal amount of the Note; and
WHEREAS, pursuant to the Acts, the State Housing Act, and Resolution
Number 87-109 of the Issuer, adopted August 17, 1987, the Issuer authorized the
issuance of the Series 1987 Bonds pursuant to and in accordance with the terms and
conditions of an Indenture of Trust, dated as of September 2, 1987 (the "Indenture")
between the Issuer and First Trust Company, Inc. (the "Trustee"); and
WHEREAS, Sections 11.01, 11.02 and 11.03 of the Indenture provide that the
Issuer and the Trustee may, with the consent of the Developer and Holders of all
the Bonds outstanding, enter into an indenture or indentures supplemental to the
Indenture for the purpose of adding any provisions to or changing in any manner or
eliminating any provisions of the Indenture or of modifying in any manner the
rights of the Holders of the Bonds under the Indenture; and
WHEREAS, the Developer has proposed that the Issuer authorize, execute
and deliver a Supplemental Indenture of Trust Number One (the "Supplemental
Indenture") to make certain modifications, amendments and changes to the
Indenture; and
WHEREAS, the Trustee and Miller & Schroeder Financial, Inc., as Holder of
all of the Bonds outstanding at the time of remarketing of the Bonds, have
approved and consented to the Supplemental Indenture; and
WHEREAS, the Series 1987 Bonds as amended by the Supplemental Indenture
and the interest thereon shall be payable, solely from the revenue pledged therefor
and the Series 1987 Bonds shall not constitute a debt of the Issuer within the
meaning of any constitutional, charter, or statutory limitation nor constitute nor
give rise to a pecuniary liability of the Issuer (other than from the revenues
specifically pleged to payment of the Series 1987 Bonds) 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 its
interest in the Loan Agreement; and
WHEREAS, neither the State of Minnesota nor any political subdivision
thereof shall be liable to pay the Series 1987 Bonds, and the Series 1987 Bonds
shall not be a debt of the State of Minnesota or any political subdivision thereof
nor shall give rise to a charge against the general credit or taxing power of the
State of Minnesota-or-any political subdivision thereof.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ST. LOUIS PARK:
1. That the City Council of the Issuer (the "Council") ratifies and
confirms its findings previously made that the undertaking of the Project within
the Issuer will provide decent, safe and affordable housing to persons and families
of low and moderate income within the Issuer, and that accomplishing this is a
public purpose.
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2. That for the purpose of amending the terms of the Indenture, the
Issuer hereby authorizes the execution and delivery of the Supplemental Indenture
of Trust Number One, between the Issuer and the Trustee, and consented to and
approved by the Developer and the Holder of the Bonds, substantially in the form
on file with the Issuer, provided that the form of said Supplemental Indenture of
Trust Number One may be amended or modified subsequent to the date hereof in
such manner as may be approved by the Mayor and City Manager of the Issuer and
the City Attorney, and the execution and delivery thereof by the Mayor and City
Manager shall be conclusive of such approval. The Mayor and City Manager of the
Issuer are hereby authorized and directed to execute and deliver the Supplemental
Indenture and the City Clerk of the Issuer is hereby authorized and directed to
attest the execution thereof under the corporate seal of the Issuer.
3. That the officers 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 Supplemental Indenture, and the Series
1987 Bonds for the full, punctual, and complete performance of all the terms,
covenants, and agreements contained in the Series 1987 Bonds, the aforementioned
documents, and this resolution.
4. All actions of the members, employees, and staff of the governing
body heretofore taken in furtherance of the Project are hereby approved, ratified
and confirmed.
5. The issuance of the Series 1987 Bonds and the transactions
contemplated thereby are hereby found to be consistent with the procedures of the
Issuer established for such undertakings and, in the event of any inconsistencies,
strict compliance with such procedures is hereby waived.
6. Any fees of the Issuer, the Issuer's attorneys' fee, and all other fees,
costs, and expenses associated with the issuance of the Series 1987 Bonds, whether
or not such Series 1987 Bonds are issued, shall be paid by the Developer (or with
respect to fees, costs, or expenses of the Issuer where initially paid by the Issuer,
reimbursed to the Issuer).
7. This resolution shall be in full force and effect from and after its
passage.
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PASSED AND APPROVED this 16th day of November, 1987.
(SEAL)
ATTEST:
Reviewed for Administration:
Approved as to form and execution:
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