HomeMy WebLinkAbout87-30 - ADMIN Resolution - City Council - 1987/03/16CITY OF ST. LOUIS PARK, MINNESOTA
RESOLUTION NO. 87-30
Authorizing certain amendments to the City
of St. Louis Park, Minnesota, $11,000,000 Multifamily
Rental Housing Revenue Bonds (Community Housing
and Service Corporation Project) - Series 1985;
authorizing certain amendments to the Indenture of
Trust and the Loan Agreement; approving certain
amendments to the form of and authorizing the
execution and delivery of the Bonds, as amended; and
providing for the security, rights and remedies of the
holders of said Bonds.
WHEREAS, the City of St. Louis Park (the "City") is a home rule charter
city duly organized and existing under the Constitution and laws of the State of
Minnesota; and
WHEREAS, pursuant to the Constitution and laws of the State of Minnesota,
particularly Minnesota Statutes, Chapters 462A and 462C, as amended (the "Acts"),
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, to provide a means of financing the cost of a rental housing
development that will provide decent, safe and sanitary housing for low and
moderate income residents of the City at rents they can afford, and further to
provide for and promote the public health, safety, morals and welfare and to
provide for efficient and well-planned urban growth and development, including the
elimination and prevention of potential urban blight, and the proper coordination of
industrial facilities with public services, mass transportation and multifamily
housing developments; which constitute valid public purposes for the issuance of
revenue bonds under the Acts, the City has developed a program (the "Program")
with respect to the issuance by the City of its revenue bonds pursuant to the Acts
to finance the acquisition and preparation of a site and the construction of a
multifamily rental housing development located in the City and containing
approximately 153 units (the "Project"); and
WHEREAS, the City developed a Housing Plan pursuant to and in conformity
with the Acts and adopted the Housing Plan after a public hearing thereon after
one publication of notice in a newspaper circulating generally in the City in
accordance with the Acts; and
WHEREAS, the Housing Plan was submitted to the Metropolitan Council,
which reviewed the Housing Plan and forwarded its comments to the City which
comments were favorable; and
WHEREAS, the Program, an individual component of the Housing Plan which
provided for the issuance of the housing revenue bonds of the City was proposed,
was developed by the City and made a part of the Housing Plan; and
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WHEREAS, the City Council of the City adopted the Program by the
passage of a resolution as required by the Acts; and
WHEREAS, the Acts require review of the Program by the Minnesota
Housing Finance Agency (the "Agency"); and
WHEREAS, the Agency stated that the Agency would not reject the
Program; and
WHEREAS, by the passage of Resolution No. 85-222 of the City Council of
the City, adopted on December 16, 1985 (the "Bond Resolution"), the City
authorized the issuance, sale and delivery of the Bonds pursuant to the terms of an
Indenture of Trust, dated as of December 1, 1985 (the "Indenture"), between the
City and Norwest Bank Minneapolis, N.A., as trustee (the "Trustee"), and a Loan
Agreement, dated as of December 1, 1985 (the "Loan Agreement"), by and between
the City and Community Housing and Services Corporation, a Minnesota nonprofit
corporation (the "Developer"); and
WHEREAS, it is necessary that the Indenture and the Loan Agreement be
amended in order to provide for the successful remarketing of the Bonds, as
contemplated by the Indenture, under current market conditions and to provide
certain additional amendments and corrections in connection therewith; and
WHEREAS, the City, the Developer, the Trustee, the holder of the Bonds
and bond counsel have approved or will approve such amendments, to the extent
required under the terms of the Indenture and the Loan Agreement; and
WHEREAS, neither the State of Minnesota nor any political subdivision
thereof (other than the City and then only to the extent of the trust estate pledged
in the Indenture) shall be liable on the Bonds, and the Bonds shall not be a debt of
the State of Minnesota or any political subdivision thereof (other than the -City and
then only to the extent of the trust estate pledged in the Indenture), and in any
event shall not give rise to a charge against the credit or taxing power of the City,
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, MINNESOTA:
1. The City Council of the City hereby approves the amendments to the
Indenture, the Loan Agreement -and -the form -of the Bonds as provided iu the forms
of the Supplement Number Three to the Indenture and the First Amended and
Restated Loan Agreement now on file with the City, and any other supplements or
amendments necessary and consistent therewith, with such additions or omissions
as do not materially affect the substance of the transaction and as the Mayor and
City Manager, in their discretion, shall determine; provided that the execution
thereof by the Mayor and City Manager shall be conclusive evidence of such
determination.
2. The Mayor and City Manager are hereby authorized and directed to
execute and deliver, on behalf of the City, the Supplement Number Three to the
Indenture and the First Amended and Restated Loan Agreement, the amended
Bonds, and such other documents and certificates as are necessary or appropriate
in connection with the execution and delivery of such amendments and the
remarketing of the Bonds.
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3. The City hereby consents to the distribution of the Remarketing
Offering Memorandum relating to the Bonds, substantially in the form on file with
the City on the date hereof, and ratifies the distribution thereof by Dougherty,
Dawkins, Strand & Yost Incorporated (the "Underwriter"); however, the City has
not participated in the preparation of the Remarketing Offering Memorandum and
assumes no responsibility for the accuracy or completeness thereof. The City
hereby consents to the use by the Underwriter in connection with the sale of the
Bonds of the Remarketing Offering Memorandum, substantially in the form on file
with the City; provided that the City Manager may consent to such variations,
omissions, and insertions as are not materially inconsistent with the form on file
with the City on the date hereof. The Remarketing Offering Memorandum is the
sole material consented to by the City for use in connection with the offer and sale
of the Bonds.
4. That the City Council of the City, 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
aforementioned amendments for the full, punctual and complete performance of all
the terms, covenants and agreements contained in the aforementioned amendments
and this resolution. In the event that the Mayor or the City Manager of the City
are unable to carry out the execution of any of the documents provided herein, any
other member of the City Council of the City or any other officer of the City shall
be authorized to act in their capacity and undertake such execution on behalf of
the City with full force and effect, which executions shall be valid and binding on
the City.
5. All fees charged and costs incurred by the City and its legal counsel
in connection with the remarketing of the Bonds and the execution and delivery of
Supplement Number Three to the Indenture, the First Amended and Restated Loan
Agreement or any other agreement or instrument relative to the remarketing of
the Bonds shall be paid by the Developer or reimbursed by the Developer to the
City, as provided in the Supplement Number Three to the Indenture.
6. This resolution shall be in full force and effect from and after its
passage.
Adopted by the City Council on March 16, 1987.
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City Clerk
Reviewed for administration:
CGn'vh of . c7) fw1v
City Manager
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Approved as to form and execution:
City Attor