HomeMy WebLinkAbout93-145 - ADMIN Resolution - City Council - 1993/09/2009/20/93 15.43
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RESOLUTION NO. 91- 145
RESOLUTION GIVING PRELIMINARY' APPROVAL TO TIIE
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 (thc ''Bonds") under its home Rule Chaster (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 ot the City's previously issued .$8,000.000
original principal amount. Multifam:ly iiousing 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 ot 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 Briarw god West Partnership. a Minnesota general partnership (the
"Original Borrower") whose general partners were Gary S. Holmes and Leonard Gasparrc.
The Original Borrower assigned its interest in the Project to the I3orrower which also has
Gary S. Holmes and Leonard Gasharrc as general partners.
1.03 Pursuant to Resolution No. 93- of the City Council and published notice. a
public hearing 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 thc Bonds and
interested persons were given the opportunity to submit writtcn comments to the City Clerk
before the time of the hearing.
1.04 The request of the Bertowct' to refund the Prior Bonds includes the issuance of
the Bonds in an aggregate principal amount of approximately 58.000,000.
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1.05 This Council hereby finds, determines and dcclatcs as follows
(a) The Project, the rctunding of the Prior Bonds and the issuance of the Bonds
would further the general purpose, contemplated and described in the Act and is a public
purpose for which bonds can he issued under its Home Rule Charter.
(b) This Council has been advised by rcptcsentatives 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 oh;ectives of the Act by providing substantial inducement
for the continued use of the Projec t 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 (Lite, it appears that it would
he desirable tor the City to cooperate in the refunding of the Ptioi Bonds (the "Refunding")
and to issue the Bonds under the provisions of the Act and its Charter in the maximum
aggregate principal amount of $$,1100,000.
2.02 This Council hereby •icclaics it_e 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 he deemed
to establish a legal obligation on the pair of the City or its City Council procccd with the
Refunding or to issue the Bonds. A11 details of the Refunding and the Bonds and the
provisions for pa)ment thereof shill he subject to such fuither conditions as the City may
specify. The Bonds. if issued, sha'l not constitute a charge, lien or encumbrance, Iega1 or
equitable. upon any property of thr City. except the revenues specifically pledged to the
payment thereof. and each Bond. whcn..is and if issued, shall recite in substance that thc
Bond. including interest thereon, i:, 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 Lharter limitation.
2.03 The prior appointment of Popham. Haik. Schnobrich R: Kaufman, Ltd. as Bond
Counsel is hereby ratified and conn irmed and such firm is authorised to proceed with the
preparation of documents as direca'd by thc Borrower.
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SECTION 3
General
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3.01 If the Bonds are is. n'd and sold, the City will enter ins a loan agreement or
similar agreement under which the: amounts payable by the Borrower to the City shall be
sufficient to pay the principal uf, and interest and redemption premium, if any, on the Bonds
as and whcn the same shall become due and payable.
3.02 This resolution shall become effective immediately upon its passage and without
publication.
Adopted this 20th day of September, 1993.
Reviewed for administration•
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M or
Approved as to form and execution:
City Attorney
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