HomeMy WebLinkAbout00-053 - ADMIN Resolution - City Council - 2000/04/24RESOLUTION NO. 00-053
RESOLUTION AUTHORIZING THE ISSUANCE
AND SALE OF GENERAL OBLIGATION BONDS
(LOUISIANA COURT PROJECT), SERIES 2000A
WHEREAS, the City of St Louis Park, Minnesota, a home rule city and political subdivision of
the State of Minnesota (the "Issuer"), is authonzed under its home rule charter (the "Charter") to issue
bonds for any public purpose not prohibited by law, and
WHEREAS, the Housing Authonty of St Louis Park, Minnesota, a public body corporate and
politic under the laws of Minnesota (the "Authority"), is authonzed under Minnesota Statutes, Sections
469 001 to 469 047, as amended (the "Act"), 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 defined by the Authority), the Issuer is authorized by the Act to enter
into agreements with the Authonty regarding projects undertaken under the Act and is further authonzed
under Minnesota Statutes, Section 471 59, as amended, to perform functions for the Authonty that the
Issuer is authorized to provide for itself, and the Authonty and the Issuer are authonzed under Mumesota
Statutes, Section 469 192, as amended to make loans to pnvate parties for any purpose that the Issuer and
the Authority are authonzed to carry out under the Act, and
WHEREAS, PPL Louisiana Court Limited Partnership, a Minnesota limited partnership (the
"Borrower"), the general partner of which is PPL Louisiana Court, LLC, a Delaware limited liability
company, has proposed to acquire certain rental housing facilities located within the boundaries of the
Issuer and to renovate the facilities for use as a multifamily rental housing facility intended pnmanly for
low and moderate income persons and their families (the "Facility"), and the Issuer and the Authonty
have proposed to provide for the financing of the Facility pursuant to the Charter, the Act, and Minnesota
Statutes, Sections 469 192 and 471 59, and
WHEREAS, the Issuer is authonzed under its Charter, the Act, and other provisions of Minnesota
law to issue its General Obligation Bonds (Louisiana Court Project), Series 2000A (the "Senes 2000A
Bonds"), in the onginal aggregate principal amount of $4.505,000, and pursuant to a Loan Agreement,
dated as of May 1, 2000 (the "Loan Agreement"), between the Issuer and the Borrower, to loan the
proceeds derived from the sale of the Bonds to the Borrower to finance the costs of issuance of the Bonds,
to fund certam reserves, and to pay a portion of the costs of the acquisition and renovation of the Facility,
and
WHEREAS, the Bonds will be secured by a pledge of the full faith and credit of the Issuer and by
the taxing power of the Issuer and will also be payable from payments to be made by the Borrower
pursuant to the Loan Agreement, and
WHEREAS, the obligations of the Borrower under the Loan Agreement will be secured by a
Mortgage, Assignment of Rents and Leases, Secunty Agreement, and Fixture Filing, dated as of May 1,
2000 (the "Mortgage"), from the Borrower to the Issuer, and
WHEREAS, the Issuer and the Borrower will enter into a Regulatory Agreement, dated as of
May 1, 2000 (the "Regulatory Agreement"), which relates to the tax-exempt status of the interest on the
Bonds and comphance by the Borrower with certain federal and state requirements applicable to the
Facility, and
Resolution No 00-053 -2-
WHEREAS, as required by the Act and by Section 147(0 of the Internal Revenue Code of 1986,
as amended (the "Code"), on Apnl 5, 2000, a notice of a public heanng to be conducted by the City
Council of the Issuer was published in the Sun -Sailor, a newspaper of general circulation within the
jurisdiction of the Issuer, and
WHEREAS, as required by the Act and Section 147(0 of the Code, on Apnl 24, 2000, the City
Council conducted a public heanng with respect to the Facility and the issuance of the Bonds to finance
the Facility and thereafter adopted this resolution (the "Resolution"),
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ST. LOUIS PARK, MINNESOTA, AS FOLLOWS:
Reviewed for Administration
Attest
C. v Clerk
C. y Clerk
Ado
/
y the City ouncil
May
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Resolution No. 00-053
INVESTMENT AGREEMENT
51-i° C #'-'TRncT
4o -O
CONTRACT NO.
60 -0 0
CITY OF ST. LOUIS PARK
THIS INVESTMENT AGREEMENT ("Agreement"), is made and entered into this ' Z44\ day
of June, 2000 by and between PPL Louisiana Court Limited Partnership, a Minnesota !muted
partnership ("PPL"), and City of St Louis Park, a municipal corporation ("City")
WHEREAS, PPL and City entered into that certain Loan Agreement dated the 1S1 day of
May, 2000 (the "Loan Agreement"), pursuant to which City agreed to loan to PPL the proceeds of the
City's $4,505,000 "City of St Louis Park, Minnesota General Obligation Bonds (Louisiana Court
Project) Series 2000A" ("Bond Loan") and an additional sum of $1,293,000 derived from funds
provided to the City by the Metropolitan Council from the Livable Communities Demonstration
Account of the Metropolitan Livable Communities Fund, established under Minnesota Statutes, Section
473.251 ("Livable Commuruties Loan"), and the City's Community Development Block Grant funds
provided in accordance with the terms of the Joint Cooperation Agreement between the City, Issuer
and Hennepin County, Minnesota ("CDBG Loan"), funds provided to the City by the Metropolitan
Council from its Local Housing Incentive Account ("LHIA Loan") A portion of the Bond Loan and
the LHIA Loan have been advanced for the benefit of the Project, and
WHEREAS, the reinaining proceeds of the Bond Loan and the Livable Communities Loan, the
CDBG Loan and LHIA Loan (collectively the "City Loan") will be used together with other funds
(collectively "Available Funds") which are to be provided by the Family Housing fund and U S.
Affordable Housing CDC, Inc as limited partner of PPL and which have been deposited with Old
Republic Title Insurance Company ("Title") for subsequent disbursement to pay the costs of renovation
of a housing project within the City identified as Louisiana Court ("Project")
WHEREAS, prior to the date when the Available Funds are to be disbursed pursuant to the
Master Disbursing Agreement among City, PPL and other funding sources ("Master Disbursement
Agreement") the City Funds and other funds deposited with Title will be available for investment PPL
wishes City to invest the Available Funds and City is willing to invest the Available Funds for the benefit
of the Project in accordance with this Agreement
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
agreements hereinafter set forth, the parties hereby agree as follows
• 1 PPL shall direct Title to transfer funds on deposit with it to City for investment hereunder To
the extent other funds come into possession of PPL designated to pay the cost of renovation of
the Project PPL shall transfer to City those funds City shall invest the Available Funds
pursuant to the terms of this Agreement
2 To the extent funds are needed to fund a disbursement in accordance with the terms of the
Master Disbursement Agreement PPL shall advise City and City shall advance the amount of
the Available Funds in City's possession needed for that disbursement
3. Prior to funds being needed to fund a disbursement in accordance with the terms of the Master
Disbursing Agreement City shall invest the funds received by it in the same manner as City is
investing comparable funds of the City and in accordance with all applicable statutes,
regulations and city policies City may commingle the funds received hereunder with other City
funds for purposes of investment
4 City does not and shall not guaranty any investment return of the funds deposited with City
hereunder but City does agree that there shall be no impairment of the principal amount thereof.
City shall attempt to invest the Funds for as high a return as is reasonable available given the
needs for liquidity of the Project including anticipated monthly disbursements of approximately
$250,000
5 The City shall maintain a detailed accounting of all transfers of funds to and from the City
hereunder, including a detailed accounting of all investment -related activity, which shall be
available for inspection by PPL on any business day
6 The City shall provide to PPL a monthly statement of interest earned on investments hereunder
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Resolution No. 00-053
IN WITNESS WHEREOF, the parties hereto have executed this Investment Agreement as
of the day first above written
CLQ _
City of St Louis Park, a municipal corporation
PPL Louisiana Court Limited Partnership
By PPL Louisiana Court LLC, General Partner
By *.-1.avnted)
Its Pre 5idel/ f
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