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HomeMy WebLinkAbout02-016 - ADMIN Resolution - City Council - 2002/03/04RESOLUTION NO. 02-016 • RESOLUTION RELATING TO A MULTIFAMILY HOUSING DEVELOPMENT TO BE ACQUIRED, OWNED AND OPERATED BY WEST SUBURBAN HOUSING PARTNERS VII LIMITED PARTNERSHIP, A MINNESOTA LIMITED PARTNERSHIP, AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COSTS THEREOF UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO, ESTABLISHING COMPLIANCE WITH CERTAIN REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED • BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota (the "City"), as follows. Section 1. Recitals. 1.01. The City of St. Louis Park, Minnesota (the "City"), is a home rule charter city duly organized and existing under its Charter and the Constitution and laws of the State of Minnesota. 1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authonzed to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance multifamily housing developments located within the City. As a condition to the issuance of such revenue bonds, the City must adopt a housing program providing the information required by Section 462C.03, subdivision la, of the Act (the "Housing Program"). Under Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"), prior to the issuance of the Bonds a public heanng duly noticed must be held by the City Council. Under Section 462C.04, subdivision 2, of the Act, a public hearing must be held on each housing program after one publication of notice in a newspaper circulating generally in the City, at least fifteen days before the hearing. 1.03. A public heanng was held on the Housing Program on March 4, 2002 after publication of notice on February 13, 2002 in the Sun -Sailor, a newspaper circulating generally in the City with respect to: (i) the required public hearing under Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"); (ii) the Housing Program; and (iii) the preliminary approval of the issuance of the Bonds. The City submitted the Housing Program to the Metropolitan Council for review and comment 1 04. West Suburban Housing Partners VII Limited Partnership, a Minnesota limited partnership (the "Company") has proposed that the City, pursuant to the Act, issue its revenue bonds in the approximate aggregate principal amount not to exceed $9,165,000, in one or more senes at one time or from time to time (the "Bonds"), the proceeds of which will be loaned by the City to the Company to be applied by the Company to the acquisition and construction of an eighty-eight (88) unit multifamily housing development known as "At the Park" (the "Project") located near the intersection of 36th Street and Phillips Parkway in the City. The Company will apply the proceeds of the loan to the acquisition costs of the Project, the costs of the construction of the Project, and the payment of certain costs related to the issuance of the Bonds. Resolution No. 02-016 -2- 1.05. Under Section 146 of the Code, the Bonds must receive an allocation of the bonding authonty of the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act"). Section 2. Preliminary Findings. Based on representations made by the Company to the City to date, the City Council of the City hereby makes the following preliminary findings, determinations, and declarations: (a) The Project consists of a multifamily housing development designed and intended to be used for rental occupancy. (b) The proceeds of the Bonds will be loaned to the Company and the proceeds of the loan will be applied to the acquisition of the Project, the construction of the Project, and the payment of costs related to the issuance of the Bonds The City will enter into a Loan Agreement with the Company requiring loan repayments from the Company in amounts sufficient to repay the loan when due and requiring the Company to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In preliminarily authonzing the issuance of the Bonds and the financing of the acquisition and construction of the Project and the related costs, the City's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by retaining and improving multifamily housing developments and otherwise furthenng the purposes and policies of the Act. (d) The issuance of the Bonds to finance all or a portion of the costs of the Project is in the public interest. (e) The Bonds will be limited obligations of the City payable solely from the revenues pledged to the payment thereof, and will not be a general obligation of or be secured by the taxing power of the City. Section 3 Allocation of Bonding Authority. An application for allocation of the bonding authority of the State of Minnesota has been made pursuant to the requirements of the Allocation Act and the Minnesota Department of Finance has granted an allocation pursuant to the Allocation Act authorizing the issuance of tax-exempt obligations in a principal amount not to exceed $6,965,000. Section 4. Housing Program. The Housing Program has been prepared and submitted to the Metropolitan Council for its review substantially in accordance with the requirements of the Act The Metropolitan Council has acknowledged receipt of the Housing Program and submitted wntten comments to the City with respect to the Housing Program. Section 5. Preliminary Approval. This Council hereby gives preliminary approval to the issuance of the Bonds in the approximate aggregate pnncipal amount not to exceed $9,165,000 to finance all or a portion of the costs of the Project pursuant to the Housing Program of the City, subject to final approval following the preparation of bond documents, and subject to final determination by this Council that zoning requirements have been met, site plan issues have been resolved and the financing of the Project and the issuance of the Bonds are in the best interest of the City. Resolution No. 02-016 -3- Section 6 Costs. The Company will pay any administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued. Section 7. Commitment Conditional. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Company. If, based on comments received at a public hearing to be held pursuant to this resolution, or other information made available to or obtained by the City during its review of the Project, it appears that the Project or the issuance of Bonds to finance or refinance the costs thereof is not in the public interest or is inconsistent with the purposes of the Act, the City reserves the right not to give final approval to the issuance of the Bonds. The City also retains the right, in its sole discretion, to withdraw from participation and accordingly not issue the Bonds should the City Council, at any time prior to the issuance thereof, determine that it is in the best interests of the City not to issue the Bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents for the transaction. Section 8. Effective Date. This Resolution shall be in full force and effect from and after its passage. Reviewed for Administration: Attest: Adopted by the City Council March 4, 2002 r Mayor