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HomeMy WebLinkAbout05-109 - ADMIN Resolution - City Council - 2005/08/15RESOLUTION NO. 05-109 RESOLUTION CALLING FOR A PUBLIC HEARING REGARDING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. Minnesota Statutes, Chapter 462C, as amended (the "Act") authorizes the City to issue revenue bonds to finance a multifamily housing development. 1.02. In 1985, a 153 -unit senior housing facility located at 3630 Phillips Parkway in the City (the "Project"), was originally financed with the proceeds of the Multifamily Housing Revenue Bonds (FHA Insured Mortgage Loan — Community Housing and Service Corporation Project), Senes 1985 (the "Series 1985 Bonds"), issued by the City in the original principal aggregate amount of $10,240,000. The Series 1985 Bonds were redeemed and prepaid with the proceeds of the Multifamily Housing Revenue Refunding Bonds (FHA Insured Mortgage Loans — Community Housing and Service Corporation Project), Series 1995 (the "Prior Bonds"), issued by the City in the original principal aggregate amount of $10,160,000. 1.03. Section 462C.03 of the Act requires that in order carry out a project, the City must develop a housing program and hold a public hearing thereon. In conjunction with the issuance of the Series 1985 Bonds, a housing program was prepared on behalf of Community Housing and Service Corporation, a Minnesota nonprofit corporation (the "Borrower"). The housing program was submitted to the Metropolitan Council and the Minnesota Housing Finance Agency for review in accordance with the then applicable provisions of the Act. An amended and restated housing program (the "Housing Program") has been prepared on behalf of the Borrower and is on file with the City. 1.04. The Borrower has proposed that the City issue Variable Rate Demand Multifamily Housing Revenue Refunding Bonds (Knollwood Place Apartments Project), Series 2005 (the "Bonds"), in the approximate principal amount not to exceed $12,300,000, to refund the Prior Bonds and refinance the Project under the Act. The Borrower has also proposed that the City issue a Housing Revenue Note (Knollwood Place Apartments Project), Series 2005 (the "Note"), in the approximate principal amount not to exceed $2,700,000, to finance capital improvements and related expenditures with respect to the Project under the Act. 1.05. Section 147(0 of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, requires that prior to the issuance of the Bonds and the Note, this Council approve the Bonds and the Note after conducting a public hearing thereon. Section 2. Public Hearing. 2.01. The City Council shall meet at 7:30 p.m. on Monday, September 19, 2005, to conduct a public hearing on the issuance of the Bonds and the Note as requested by the Borrower. Resolution No. 05-109 -2- 2.02. The City Manager is authorized and directed to publish notice of the hearing in substantially the form attached hereto as Exhibit A in a newspaper of general circulation in the City once, at least fifteen (15) days prior to the date of the public hearing. Section 3. City Council Approvals 3.01. The Council hereby states its preliminary intention to issue the Bonds to refund the Prior Bonds and refinance the Project, and to issue the Note to finance capital improvements and related expenditures with respect to the Project, subject to compliance with the terms and conditions of the Act and the final agreement among the City, the Borrower and the initial purchaser of the Bonds and the Note as to the terms and conditions thereof. 3.02. The Council hereby approves the Housing Program in the form now on file with the City. The Council hereby authorizes the submission of the Housing Program to the Metropolitan Council for its review in accordance with the terms of the Act. Section 4. Reimbursement of Costs under the Code. 4.01. The United States Department of the Treasury has promulgated final regulations governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City or a borrower from the City for project expenditures paid prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen months after the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 4.02. To the extent any portion of the proceeds of the Bonds or the Note will be applied to expenditures with respect to the Project, the City reasonably expects to reimburse the Borrower for the expenditures made for costs of the Project from the proceeds of the Bonds or the Note after the date of payment of all or a portion of such expenditures. All reimbursed expenditures shall be capital expenditures, costs of issuance of the Bonds or the Note, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations and also ualifying expenditures under the Act. after its August, ection 5. Effective Date. This Resolution shall be in full force and effect from and assage. Approved by the City Council of the City of St. Louis Park this 15th day of 005. Re ' ie 4. r Administration: -ai& Ci' r age_ Attest: C y Clerk by tlz City Council August 15, 2005 Mayo e(eye, Resolution No. 05-109 -3- EXHIBIT A CITY OF ST. LOUIS PARK, MINNESOTA NOTICE OF PUBLIC HEARING NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF REVENUE REFUNDING BONDS AND A REVENUE NOTE UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, TO REFINANCE A MULTIFAMILY RENTAL HOUSING DEVELOPMENT NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City"), will hold a public hearing on Monday, September 19, 2005, on or after 7:30 p.m. at City Hall, 5005 Minnetonka Boulevard in the City, to consider the issuance of revenue refunding bonds (the "Bonds"), and a revenue note (the "Note"), under Minnesota Statutes, Chapter 462C, as amended (the "Act"). The Bonds are proposed to be issued to refinance a 153 -unit senior housing facility located at 3630 Phillips Parkway, near the intersection of Highway 169 and Highway 7, in the City (the "Project"). The Note is proposed to be issued to finance capital improvements and related expenditures with respect to the Project. The Project is currently owned and operated by Community Housing and Service Corporation, a Minnesota nonprofit corporation. The Project was originally financed with the proceeds of the Multifamily Housing Revenue Bonds (FHA Insured Mortgage Loan — Community Housing and Service Corporation Project), Senes 1985 (the "Series 1985 Bonds") issued by the City in the original principal aggregate amount of $10,240,000. The Series 1985 Bonds were redeemed and prepaid with the proceeds of the Multifamily Housing Revenue Refunding Bonds (FHA Insured Mortgage Loans — Community Housing and Service Corporation Project), Senes 1995 (the "Prior Bonds"), issued by the City in the original principal aggregate amount of $10,160,000. Following the public hearing, the Council will consider adoption of a resolution approving the issuance of the Bonds to refund the Prior Bonds and refinance the Project and the issuance of the Note to finance capital improvements and related expenditures with respect to the Project. The aggregate face amount of the Bonds proposed to be issued to refinance the Project is presently estimated not to exceed $12,300,000. The aggregate face amount of the Note proposed to be issued to finance the Project is presently estimated not to exceed $2,700,000. The Bonds and the Note will be issued by the City and will be limited obligations of the City payable solely from the revenues pledged to the payment thereof. Neither the Bonds nor the Note will be general or moral obligations of the City. The Bonds and the Note will not be secured by or payable from any assets, revenues, or other property of the City (except the interests of the City in the Project) and will not be secured by or payable from any revenues derived from any application of the taxing powers of the City. All persons desiring to be heard during this public heanng will be afforded an opportunity to do so. Dated: [date of publication] BY ORDER OF THE CITY OF ST. LOUIS PARK, MINNESOTA