Loading...
HomeMy WebLinkAbout99-154 - ADMIN Resolution - City Council - 1999/12/20RESOLUTION NO. 99-154 GIVING PRELIMINARY APPROVAL TO A PROPOSED ISSUE OF MULTIFAMILY HOUSING REVENUE BONDS WHEREAS, the Housing Authority of St Louis Park, Minnesota, a public body corporate and politic under the laws of Minnesota (the "Authority") was created pursuant to Minnesota Statutes, Sections 469 001 to 469 047 (the "Act"), and has the powers to plan and implement housing programs for low and moderate income persons, including without limitation housing development projects as defined in the Act, WHEREAS, pursuant to the Act, the Authority is authorized to undertake certain housing development projects intended to alleviate a shortage of decent, safe and sanitary housing for persons of low or moderate income and their families as such income is determined by the Authority, and WHEREAS, the City is authorized by the Act to enter into agreements with the Authority regarding projects undertaken under the Act, and is further authorized under Minnesota Statutes, Section 471 59 to perform functions for the Authority that the City is authorized to provide for itself, and WHEREAS, the City is authorized under its home rule charter to issue bonds for any public purpose not prohibited by law, and WHEREAS, the Authority and City are authorized under Minnesota Statutes, Section 469 192 to make loans to private parties for any purpose that the City and Authority are authorized to carry out under the Act, and WHEREAS, it has been proposed that the City undertake to issue general obligation bonds (the "Bonds") pursuant to its city charter to finance the acquisition and rehabilitation of a 124 -unit multifamily housing facility located at 2705 Louisiana Court, 2740 Louisiana Avenue, 2750 Louisiana Avenue, 2711 Louisiana Court, 2704 Louisiana Court, 2717 Louisiana Court, 2730 Louisiana Court, 2741 Louisiana Court, 2742 Louisiana Court, 2754 Louisiana Court, and 2722 Louisiana Court in the City known as "Louisiana Court" (the "Project") by PPL Louisiana Court Limited Partnership (the "Company"), and WHEREAS, it is desirable that the Project be retained as affordable housing for low and moderate income households in the City, and WHEREAS, in order to make development of the Project financially feasible, the City and Authority propose to assist in financing the Project in accordance with the terms of a Contract for Private Redevelopment ("Agreement") between the City, the Authority and the Company approved by the City as of this date, and WHEREAS, under applicable federal tax law, the City must obtain an allocation of issuance authority pursuant to Minnesota Statutes, Chapter 474A (the "Allocation Act") in order to issue tax- exempt bonds for the Project, and Resolution No 99-154 -2- WHEREAS, the Internal Revenue Service has issued Treas Reg § 1 150-2 providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met, and WHEREAS, the City or the Company may incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St Louis Park, Minnesota 1 The City hereby states its preliminary intention to issue the Bonds for the Project in an aggregate principal amount up to approximately $5,000,000, subject to compliance with the terms and conditions of the Allocation Act, the City Charter, the Agreement and the final agreement among the City, the Company and the initial purchaser of the Bonds as to the terms and conditions thereof 2 The City Manager and other City staff are authorized to cooperate with the Company in the preparation and submission to the Minnesota Department of Finance of an Application for Allocation for Bonding Authority for Tax 'Exempt Financing under Federal Tax Law, in accordance with the provisions of the Allocation Act 3 Upon receipt from the Company of the amount of 50% of the required application deposit and application fee in accordance with the Contract, the City shall issue its check or checks to the Department for the amount of the application deposit and application fee 4 The City or the Company may make expenditures for the Project, and the City reasonably intends to reimburse itself or the Company for such expenditures from the proceeds of the Bonds 5 This resolution is intended to constitute a declaration of official intent for purposes of Treas Reg § 1 150-2 and any successor law, regulation, or ruling Attest by ,City Council December 20, 1999 Reviewed for Administration Ma 1 4 1