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HomeMy WebLinkAbout91-104 - ADMIN Resolution - City Council - 1991/05/20t RESOLUTION NO. 91-104 RESOLUTION AUTHORIZING THE ISSUANCE AND SALE BY THE CITY OF ITS SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE REFUNDING BONDS (GNMA-MORTGAGE BACKED SECURITIES PROGRAM), SERIES 1991-A, AUTHORIZING EXECUTION OF A TRUST INDENTURE, SEPARATE ORIGINATION, SERVICING AND ADMINISTRATION AGREEMENTS AND A PURCHASE CONTRACT ALL RELATING TO SAID BONDS, AND AUTHORIZING OTHER ACTION TO BE TAKEN WITH RESPECT TO THE ISSUANCE, SALE AND DELIVERY OF THE BONDS. WHEREAS, it has been proposed that the City of St. Louis Park, Minnesota (the "City"), issue, as authorized under Minnesota Statutes, Chapter 462C and 462A, as amended (the "Acts"), its Single Family Residential Mortgage Revenue Refunding Bonds (GNMA-Mortgage Backed Securities Program), Series 1991-A (the "Bonds") in the aggregate principal amount of $5,865,000 for the purpose of refunding and redeeming on June 1, 1991 its Mortgage Revenue Bonds, Series 1980 (the "Prior Bonds") originally issued as of December 1, 1980 in an aggregate principal amount of $20,200,000 of which $5,865,000 remains outstanding; and WHEREAS, the City Council of the City (the "Council") adopted a resolution on May 6, 1991, giving preliminary approval to the issuance of the Bonds, for the purposes proposed above, under the Acts and in the approximate amount of $5,865,000; and WHEREAS, the following documents have been submitted to the Council, and have been or will be placed on file with the City Clerk: (a) Indenture of Trust, to be dated as of May 1, 1991 (the "Indenture") proposed to be made and entered into between the City and the Trustee; (b) Origination, Servicing and Administration Agreements, each to be dated as of May 1, 1991 (the "Origination Agreement") proposed to be made and entered into by, between and among each of the lenders (the "Lender"), Knutson Mortgage Corporation as servicer (the "Servicer"), the City and the Trustee; (c) Purchase Contract, to be dated the date of. execution thereof (the "Purchase Contract"), by and among the City and Miller & Schroeder Financial, Inc., Stifel, Nicolaus & Co., Inc. and Meridian Capital Markets, Inc. (the "Underwriters"); (d) Preliminary Official Statement, relating to the Bonds. IT IS HEREBY DETERMINED AND DECLARED by the Council as follows: (1) Issuance of the Bonds will result in a substantial savings to the City in revenues expended for principal and interest on the Prior Bonds. (2) The Council has determined that long-term mortgage loans for housing located within the City are not otherwise available, wholly or in part, from private lenders upon equivalent terms and conditions to those to be provided by the City under its Program described in the Indenture. (3) The refunding of the Prior Bonds and the use of $5,865,000 by the Trustee for the financing of mortgages will allow the City to promote the public welfare by maintaining and preserving adequate housing stock within the City by providing for the acquisition of existing single family residential units by low or moderate income families of first-time home buyers at lower interest rates on mortgages. (4) In establishing the maximum mortgage amounts and maximum purchase prices for single family dwellings qualifying under the Program, the City has taken into account housing cost differences in the regions of the state. (5) The payments required or provided for by the Indenture or the Origination Agreements are intended to produce revenues sufficient to provide for the payment when due of principal and interest on all Bonds issued under the Indenture and for payments which are required for such expenses, among others, as the administration of the Program and servicing of the Loans, as will be necessary to protect the interests of the City. (6) The Bonds will be a limited obligation of the City payable solely from revenues generated by the Program, and the City will not be liable for any payment on the Bonds. (7) The commission to be paid to the Underwriters as provided in the Purchase Contract is in an amount determined by the City to be reasonable in light of the risk assumed and the expenses of issuance, if any, required to be paid to the Underwriters. (8) The City hereby interprets its Charter as follows: the limitations contained in Section 6.16 of the City's Charter do not apply to the Bonds since the Bonds do not constitute bonded debt of the City and since the other provisions of Section 6.16 apply and are relevant only to bonded debt. The City is granted all powers granted in the Act pursuant to Section 6.15(a) of the Charter and the Bonds are subject to separate limitations contained in the Act. -2- r NOW, THEREFORE, the Council resolves as follows: (1) The City is hereby authorized to issue its Single Family Residential Mortgage Revenue Refunding Bonds (GNMA-Mortgage Backed Securities Program), Series 1991-A, in the aggregate principal amount of $5,865,000. The Bonds shall bear such dates, shall mature at such times, shall bear interest at such rates, be in such denominations and in such form and shall be subject to payment under such terms and conditions, including optional or mandatory redemptions, as provided in the Indenture approved pursuant to this resolution. (2) The Indenture, the Origination Agreements, the Purchase Contract and the Preliminary Official Statement, each in substantially the form submitted to the City, are hereby approved. The Indenture and the Origination Agreements, with such variations, insertions and additions as the City,Attorney may hereafter deem appropriate, are directed to be executed in the name of and on behalf of the City by the Mayor and the City Manager with or without the official seal of the City impressed thereon and attested to by the City Clerk. The Official Statement (the "Official Statement"), in substantially the form of the Preliminary Official Statement, with such variations, insertions and additions as the City Attorney may hereinafter deem appropriate, is approved. The Council ratifies, confirms and approves the distribution of the Preliminary Official Statement, and authorizes the distribution,of the Official Statement of the Underwriters to prospective purchasers of the Bonds. (3) The Mayor, City Manager and City Clerk are authorized and directed to prepare and execute by manual or facsimile signature the Bonds as prescribed in the Indenture and to deliver them to the Trustee, together with a certified copy of this resolution and other documents required by the Indenture, for authentication and delivery to the purchaser. The Trustee is hereby appointed authenticating agent with respect to the Bonds pursuant to Minnesota Statutes, Section 475.55, and the certificate of authentication on the Bonds shall evidence authentication of the Bonds under this authority. 4. The Mayor, City Manager, City Clerk and other officers of the City are authorized and directed to prepare, execute and furnish to the purchaser of the Bonds, 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 and marketability 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, may be executed by one or more of such officers and shall constitute representations of the City as to the truth of all statements contained therein. -3- 5. The approval hereby given to the various documents referred to above includes an 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 prior to the execution of the documents. 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 of the Mayor, City Manager or City Clerk, any of the documents authorized by this resolution to be executed may be executed by the Acting Mayor, Acting City Manager or Acting City Clerk, respectively. 6. The proposal of the Underwriter to purchase the Bonds upon the terms and conditions set forth in the Purchase Contract is hereby found and determined to be reasonable and is hereby accepted and the execution thereof by the Mayor and the City Manager in the name and on behalf of the City is hereby approved, ratified and confirmed. 7. This resolution shall be effective immediately upon its final adoption. PASSED by the City Council of the City of St. Louis Park, Minnesota, this 20th day of May, 1991. Attest: )Yr --44 May, Reviewed for administration: Approved as to form and legality: Xe. Ox09-1 a.c. t.C. ) City Manager City Attorney 657:DBND -4-