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Home My WebLink About94-111 - ADMIN Resolution - City Council - 1994/08/15RESOLUTION NO. 94-_f1l RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, CALLING A PUBLIC HEARING BE IT RESOLVED by the City Council (the "City Council") of the City of Si Louis Park, Minnesota (the "City"), as follows: Section 1. Recitals: Findings. 1.01. The Minnesota Municipal Industrial Development Act, Minnesota Statutes, Section 469.152 to 469.1651, as amended (the "Act"), authorizes the issuance of revenue bonds to finance projects. 1.02. The Home Rule Charter of the City authorizes the issuance of bonds "for any public purpose not prohibited by law." 1.03. The term "project" is defined in the Act to include "any properties, real or personal, used or useful in connection with a revenue producing enterprise." 1.04. The City has issued its $10,124,832, City of St. Louis Park, Minnesota Multi- Famil`y Mortgage Revenue Bonds (Walker Place Apartments Project) Series 1986 (the "1986 Bonds") to fund the acquisition and construction of a "project" by St. Louis Park Housing Partners, a Limited Partnership (the "Borrower"), which 1986 Bonds are currently held beneficially and of record solely by SCA Tax Exempt Fund Limited Partnership (the "Bondholder"). The Borrower has presented to the City Council of the City information concerning the project financed with the 1986 Bonds (the "Project"), described below, and, with the consent of the Bondholder, a request for amendment of the terms of the 1986 Bonds, including, without limitation, (a) a change in name to reflect the change in name of the Project, (b) an extension of the maturity date of the 1986 Bonds, and (c) a change in the interest rate on the 1986 Bonds. 1.05. The Project, formerly known as Walker Place Apartments and now known as Newport on Seven, is a 167 unit mid -rise multi -family housing apartment project with low and moderate income set aside, located at 7450 West State Highway No. 7, St. Louis Park, Minnesota 55426. The Project is located on a 6.7 acre site. Amenities include a large enclosed whirlpool, exercise room, sauna, media/library room, tanning bed, sunroom, a guest suite and an entertainment room with kitchen facilities, and a heated underground garage. The Borrower represents that average occupancy of the Project during 1993 was 96.8%. 1.06. The Borrower, with the consent of the Bondholder, has requested that the City resolve to approve amendments to the 1986 Bonds, as described above, and will present to 449122033939 8/10194 the CIty Council a form of resolution concerning such amendment with a request that such resolution be considered for adoption by the City Council, after a public hearing pursuant to reasonable public notice. 1.07. The City hereby finds and determines that the amendment of the 1986 Bonds is authorized under the Act and the City's Home Rule Charter and constitutes a public purpose under the City's Home Rule Charter for which bonds can be Issued. 1.08. The City bas been advised that the proposed amendments constitute a "reissuance" of the 1986 Bonds for purposes of the provisions relating to tax exempt municipal bonds under the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the "Code"). Section 147(f)(2)(D) of the Code and Section 1313(a)(3)(A) of the Tax Reform Act of 1986 require a public hearing following reasonable public notice prior to the approval of the proposed amendments to the 1986 Bonds by the Council. The Code requires that the notice of the public hearing be published at least 14 days prior to the date of the public hearing in the official newspaper of the City for Iegal notices for residents other than in the locality of the Project and in a newspaper of general circulation in the locality of the Project and that such notice contain the date, time and place of the public hearing as well as a general, functional description of the Project, the maximum aggregate face amount of the 1986 Bonds, the initial owner, operator, or manager of the Project and the location of the Project by street address, or if none, by description of specific location. 1.09. The Act provides that notice of the time and place of such public hearing, stating the general nature of the Project, and an estimate of the principal amount of bonds or other obligations to be issued to finance a project, must be published at least once not less than fourteen (14) days nor more than thirty (30) days prior to the date fixed for the public hearing in the official newspaper of the City and a newspaper of general circulation in the City. 1.10. The Borrower previously has presented to the City a form of public notice, attached hereto as Exhibit A, with a request that the City Council establish a date for a public hearing and authorize publication of the form of public notice provided by the Borrower. 1.11. The adoption of this Resolution by the City shall not obligate: the City to proceed with or approve any amendment of the 1986 Bonds. Further, the CIty's approval of any amendments to the 1986 Bonds may be subject to such conditions as the City may deem necessary and appropriate in connection therewith. Section 2. Public Hearing. 2.01. The City will conduct, and there is hereby called, a public hearing on the proposal of the Borrower that the CIty amend the 1986 Bonds and certain documents relating thereto on Monday, the 12th day of September, 1994 at 7:30 o'clock p.m. at the Council Chambers of the City Hall, 5005 Minnetonka Boulevard. 449/22053939 8/10+94 -2- 7= • r t 1 2.02. The actions of the City Clerk of the City causing a public notice, substantially in the form of the notice attached hereto as Exhibit A, to be published in the official newspaper of the City, a newspaper of general circulation in the location of the Project and all activities undertaken' in furtherance thereof prior to the date of this Resolution are hereby authorized, ratified, confirmed and approved. Section 3. Indemnity and Fee Agreements. 3.01. The City shall obtain from each of the Borrower and the Bondholder an Agreement as to Indemnity and Payment of Expenses in the form attached as Exhibit A to the City's Procedure for Application to the City of St. Louis Park for private activity revenue bond financing on or before the date of the public hearing for approval of the amendment of the 1986 Bonds, Section 4. Effective Date. 4.01. This resolution shall become effective immediately upon its passage and without publication. Adopted this 15th day of August, 1994. ATTEST: Cec.„4Z,v,,J City Clerk Reviewed for administration: 449/12051939 8/10194 Mayi4 w A44,) Approved as to form and execution: Jue a &t City Atf rney -3- Exhibit A to Resolution No. 94-_ NOTICE OF PUBLIC HEARING RELATING TO A PROJECT AND THE PROPOSED AMENDMENT AND RE -ISSUANCE OF REVENUE BONDS FINANCING FACILITIES FOR MULTI -FAMILY HOUSING ON BEHALF OF ST. LOUIS PARK HOUSING PARTNERS, A LIMITED PARTNERSHIP, A MINNESOTA LIMITED PARTNERSHIP NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City of Si Louis Park, Minnesota (the "City") on the proposed amendment and re -issuance of up to $10,124,832 in multi -family housing revenue bonds (Series 1986 Bonds) by the City in connection with a Project financed pursuant to Sections 469.152 to 469.1651, Minnesota Statutes. The proceeds of the Series 1986 Bonds have been loaned to St. Louis Park Housing Partners, a Limited Partnership, a Minnesota limited partnership (the "Borrower"). The Borrower has used the proceeds of the 1986 Bonds to finance the Project described below, which is owned, operated and managed by the Borrower. The Borrower, with the consent of the sole Bondholder, has requested amendment of the 1986 Bonds, to among things, extend the date of maturity and to decrease the interest rate. The hearing will be held at Council Chambers of the City Hall, 5005 Minnetonka Boulevard, in said City on Monday, September 12, 1994, at approximately 7:30 o'clock p.m. The Project, which was previously known as Walker Place Apartments Project and is currently known as Newport on Seven, is a 167 unit mid -rise multi -family housing apartment project with low and moderate income set aside located at 7450 West State Highway No. 7, Si Louis Park, Minnesota 55426. The Project is located on a 6.7 acre site. Amenities include a large enclosed whirlpool, exercise room, sauna, media/library room, tanning bed, sunroom, a guest suite and an entertainment room with kitchen facilities, and a heated underground garage. The Borrower represents that average occupancy of the Project during 1993 was 96.8%. 449/11053939 9/1094