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HomeMy WebLinkAbout03-069 - ADMIN Resolution - City Council - 2003/06/16• • • RESOLUTION NO. 03-069 GIVING PRELIMINARY APPROVAL TO THE PROPOSED ISSUANCE OF MULTIFAMILY HOUSING VARIABLE RATE REVENUE REFUNDING BONDS (WESTWIND APARTMENTS PROJECT), SERIES 2003, IN THE APPROXIMATE AGGREGATE PRINCIPAL AMOUNT OF $5,700,000 UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED BE IT RESOLVED by the City Council of the City of St. Louis Park (the "City") as follows: Section 1. Recitals 1 01 Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance or refinance multifamily housing developments located within the City or another municipality The governing body of the municipality or redevelopment agency must conduct a public hearing on the proposal to undertake and finance the project Notice of the time and place of heanng, and stating the general nature of the project and an estimate of the pnncipal amount of bonds or other obligations to be issued to finance the project, must be published at least once not less than fifteen (15) days pnor to the date fixed for the hearing in a newspaper of general circulation in the municipality. 1 02 The City previously issued its Multifamily Housing Revenue Refunding Bonds (Bnarwood West Project), Series 1985, in the original principal amount of $8,000,000 (the "Senes 1985 Bonds"), under the Act, to finance a 186 -unit multifamily rental housing development and certain related facilities now known as Westwind Apartments located at 275 Shelard Parkway in St. Louis Park, Minnesota (the "Project"). 1.03. On December 22, 1993, the City issued its Multifamily Housing Revenue Refunding Bonds (GNMA Mortgage Loan/Westwind Apartments Project), Series 1993 in the pnncipal amount of $6,290,000 to redeem and prepay the Series 1895 Bonds. 1 04. The Project is owned and operated by GHH Investments, a Wyoming general partnership (the "Borrower"). The Borrower has requested that the City issue its Multifamily Housing Vanable Rate Revenue Refunding Bonds (Westwind Apartments Project), Senes 2003 (the "Bonds"), in the approximate onginal aggregate pnncipal amount of $5,700,000. The proceeds of the Bonds will be applied to the redemption and prepayment of the Senes 1993 Bonds 105. Section 147(f) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, require that pnor to the issuance of tax-exempt bonds, the City Council of the City approve the bonds after conducting a public hearing thereon. 1.06. Pnor to consideration of this resolution, the City Council of the City has conducted a public heanng on the date hereof with respect to the proposal to issue the Bonds, as requested by the Borrower Section 2. Preliminary Approval Granted. Resolution No. 03-069 -2- 2.01 The issuance of the Bonds to redeem and prepay the Series 1993 Bonds is hereby preliminanly approved subject to the mutual agreement of the City, the Borrower and the initial purchaser of the Bonds as to the details of the Bonds and provisions for their payment. In all events, it is understood, however, that the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the City's interest in the loan or revenue agreement with respect to the Bonds and the Project, and the Bonds, when, as, and if issued, shall recite in substance that the Bonds, including interest thereon, are payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a general or moral obligation of the City. 2.02. The law firm of Kennedy & Graven, Chartered is authonzed to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and Bonds issued in connection therewith. The Mayor, City Manager and other officers, employees and agents of the City are hereby authonzed to assist Bond Counsel in the preparation of such documents. 2.03. The Borrower has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project. The Borrower has also agreed to pay the administrative fee of the City in the event the Bonds are issued. 2.04. All commitments of the City expressed herein are subject to the condition that by June 1, 2004, the City, the Borrower and the initial purchaser of the Bonds will have agreed to mutually acceptable terms and conditions of the loan or revenue agreement, the Bonds and of the other instruments and proceedings relating to the Bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Bonds are not sold within such time, this Resolution will expire and be of no further effect. 2 05. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds, or issue the Bonds in an amount less that the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to in paragraph 1.04 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Section 3. after its passage Effective Date. This Resolution shall be in full force and effect from and Revie, ed for Administration: City Manager Attest. b /the City CouncilciJune 16, 2003 M yor