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HomeMy WebLinkAbout92- 132 - ADMIN Resolution - City Council - 1992/09/08J RESOLUTION NO. 92- 132 RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTERS 462C, 462A and 475 AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City), as follows: SECTION 1 Recitals and Findings 1.01 This Council has received a request from GHH Investments, a Wyoming partnership (the "Borrower") that the City proceed with a refunding of, and issue its revenue refunding bonds (the "Bonds") under its Home Rule Charter (its "Charter") and Minnesota Statutes Chapter 462C, Chapter 462A and chapter 475, as amended (the "Act"), on behalf of Borrower, to refund, the outstanding amount of the City's previously issued $8,000,000 original principal amount Multifamily Housing Revenue Bonds (Briarwood West Project) Series 1985, originally issued December 18, 1985 (the "Prior Bonds) on behalf of the Original Borrower (hereinafter defined). 1.02 The project financed from the proceeds of the Prior Bonds (the "Project") consisted of the acquisition of land and the construction and equipping of a 186 unit apartment complex located in the City on a six (6) acre site at 255, 265, and 275 Shelard Parkway (the "Project"), by Briarwood West Partnership, a Minnesota general partnership (the "Original Borrower") whose general partners were Gary S. Holmes and Leonard Gasparre. The Original Borrower assigned its interest in the Project to the Borrower which also has Gary S. Holmes and Leonard Gasparre as general partners. 1.03 Pursuant to Resolution No. 92-115 of the City Council, a public hearing, duly noticed, was held on the proposal to refund the Prior bonds and issue the Bonds, at which all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to refund the Prior Bonds and issue the Bonds and interested person were given the opportunity to submit written comments to the City Clerk before the time of the hearing. 1.04 The request of the Borrower to refund the Prior Bonds includes an initial issuance of refunding bonds or t remarketing of the Prior Bonds upon amendment of the Prior Bonds and related documents and a subsequent issue of refunding bonds. 1.05 This Council hereby finds, determines and declares as follows: (a) The Project, the refunding of the Prior Bonds and the issuance of the Bonds would further the general purposes contemplated and described in the Act and is a public purpose for which bonds can be issued under its Home Rule Charter. (b) This Council has been advised by representatives of the Borrower that the undertaking of the proposed refunding and the issuance of the Bonds will continue to promote the public purpose and legislative objectives of the Act by providing substantial inducement for the continued use of the Project to provide affordable housing. (c) The City is authorized by the Act and its Home Rule Charter to issue its revenue refunding bonds to refund the Prior bonds. SECTION 2 Determination to Proceed with the Refunding 2.01 On the basis of the information given the City to date, it appears that it would be desirable for the City to cooperate in the initial refunding or remarketing and the subsequent refunding of the Prior Bonds (the "Refunding") and to issue the Bonds under the provisions of the Act and its Charter in the maximum aggregate principal amount of $8,000,000. 2.02 This Council hereby declares its present intent to proceed with the Refunding and to have the City issue the Bonds under the Act and its Charter to refund the Prior Bonds. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its City Council proceed with the Refunding or to issue the Bonds. All details of the Refunding and the Bonds and the provisions for payment thereof shall be subject to such further conditions as the City may specify. The Bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues specifically pledged to the payment thereof, and each Bond, when, as and if issued, shall recite in substance that the Bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional, statutory or charter limitation. -2- 2720PHT 9867.971 92"-131tb 2.03 The prior appointment of Popham, Haik, Schnobrich & Kaufman, Ltd. as Bond Counsel is hereby ratified and confirmed and such firm is authorized to proceed with the preparation of documents as directed by the Borrower. SECTION 3 General 3.01 If the Bonds are issued and sold, the City will enter into a loan agreement or similar agreement under which the amounts payable by the Borrower to the City shall be sufficient to pay the principal of, and interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. 3.02 This resolution shall become effective immediately upon its passage and without publication. Adopted this 8th day of September, 1992. ATTEST : erk City C cti Reviewed for administration: Approved as to form and execution: fiA (.1000k City Manager --3- 272OPH7 , , i aet 5hii vu•t) City Attorney 3857.373 Cl J _ TT ^LLT•^ •C 1T1 -1u 11141.1 _