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HomeMy WebLinkAbout15-075 - ADMIN Resolution - City Council - 2015/06/01RESOLUTION NO. 15-075 RESOLUTION CALLING A PUBLIC HEARING REGARDING A HOUSING DEVELOPMENT AND THE ISSUANCE OF REVENUE BONDS THEREUNDER AND PROVIDING PRELIMINARY APPROVAL TO THE ISSUANCE OF THE REVENUE BONDS BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01 Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Housing Act"), a municipality is authorized to carry out the public purposes described in the Housing Act by providing for the issuance of revenue bonds to provide funds to finance or refinance multifamily housing developments located within the municipality. 1.02. Pursuant to Minnesota Statutes, Section 471.656, as amended, a municipality is authorized to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the obligations are issued under a joint powers agreement between the governmental unit issuing the obligations and the governmental unit in which the property to be acquired or improved is located. Pursuant to Minnesota Statutes, Section 471.59, as amended, by the terms of a point powers agreement entered into through action of their governing bodies, two govermnental units may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised and the joint powers agreement may provide for the exercise of such powers by one or more of the participating governmental units on behalf of the other participating units. 1 03 On September 28, 2005, the City of Minneapolis (the "City of Minneapolis") issued its Health Care Facilities Revenue Bonds (Jones -Harrison Residence Project), Series 2005 (the "Series 2005 Bonds"), in the original aggregate principal amount of $14,030,000. The City of Minneapolis loaned the proceeds of the Series 2005 Bonds to Jones -Harrison Residence, a Minnesota nonprofit corporation (the "Corporation"), to (i) refinance the Corporation's 163 -bed skilled nursing facility and 57 -unit assisted living facility located at 3700 Cedar Lake Avenue in the City of Minneapolis (the "Project") by refunding the Health Care Facilities Revenue Bonds (Jones -Harrison Residence Project), Series 1998, issued by the City of Minneapolis in the original aggregate principal amount of $10,000,000; (ii) finance various capital improvements to the assisted living facility, (iii) fund a reserve fund for the Series 2005 Bonds; and (iv) pay the costs of issuance of the Series 2005 Bonds. 1.04. The Corporation has requested that the City issue revenue bonds, in one or more series, as taxable or tax-exempt obligations (the "Bonds"), in an aggregate principal amount not to exceed $13,000,000, and loan the proceeds thereof to the Corporation The Corporation will use the proceeds of the Bonds, along with other available funds, to (i) refinance the Project through the redemption and prepayment of the outstanding Series 2005 Bonds, (ii) fund a debt service reserve fund; and (iii) pay costs of issuance of the Bonds. 1.05 As a condition to the issuance of revenue bonds under the Housing Act, the City must adopt a housing program providing the information required by Section 462C.03, subdivision la of the Housing Act (the "Housing Program"). Resolution No. 15-075 -2- 1 06. The Corporation has requested that the City Council conduct a public hearing on Monday, July 6, 2015, to (i) approve the issuance of the Bonds pursuant to the requirements of Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code") and the regulations promulgated thereunder; and (ii) approve the Housing Program pursuant to the requirements of the Housing Act. 1.07. The Community Development and Regulatory Services Committee of the City Council of the City of Minneapolis is expected to hold a public hearing on June 23, 2015 with respect to host approval for the City to issue the Bonds, as required by Section 147(0 of the Code. Section 2. Preliminary Findings. Based on representations made by the Corporation to the City to date, the City Council of the City hereby makes the following preliminary findings, determinations, and declarations: (a) The Project, which is being refinanced with proceeds of the Bonds, consists of a multifamily housing development designed and intended to be used for rental occupancy by seniors (b) The proceeds of the Bonds will be loaned to the Corporation and the proceeds thereof, along with other available funds, will be used to refinance the Project, fund a debt service reserve fund, and pay costs of issuance of the Bonds. The City will enter into a loan agreement (or other revenue agreement) with the Corporation requiring loan repayments from the Corporation in amounts sufficient to repay the loan of the proceeds of the Bonds when due and requiring the Corporation to pay all costs of maintaining and insuring the Project, including taxes thereon (c) In preliminarily authorizing the issuance of the Bonds, the City's purpose is to further the policies of the Housing Act (d) The Bonds will be special, limited obligations of the City payable solely from the revenues pledged to the payment thereof, will not be a general or moral obligation of the City, and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. Section 3. Public Hearing. 3 01. The City Council shall meet at 7.30 p.m. on Monday, July 6, 2015, to conduct a public hearing as requested by the Corporation, notice of which hearing (the "Public Notice") will be published as required by Section 462C 04, subdivision 2 of the Housing Act and Section 147(0 of the Code. 3 02. The City Clerk is hereby authorized and directed to publish the Public Notice, in substantially the form attached hereto as EXHIBIT A, in the Sun Sailor, the official newspaper of the City and a newspaper of general circulation in the City. The Public Notice shall be published at least once, at least fifteen (15) days prior to the date of the public hearing. At the public hearing, reasonable opportunity will be provided for interested individuals to express their views, both orally and in writing, on the Housing Program and the proposed issuance of the Bonds. • Resolution No 15-075 -3- 3.03. Kennedy & Graven, Chartered, as bond counsel to the City, shall prepare and submit to the City the Housing Program to authorize the issuance by the City of the Bonds in a principal amount not to exceed $13,000,000 to, among other things, refinance the Project. City staff are authorized and directed to submit the Housing Program to the Metropolitan Council for review and comment on or before the date the Public Notice is published, as required by Section 462C.04, subdivision 2 of the Housing Act Section 4. Preliminary Approval. The City Council hereby states its preliminary intention to issue the Bonds in the maximum aggregate principal amount of $13,000,000 to (i) refinance the Project by refunding the outstanding Series 2005 Bonds; (ii) fund a debt service reserve fund; and (iii) pay the costs of issuing the Bonds. Section 5 Costs The Corporation will pay the 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 refinancing the Project and issuing the Bonds, whether or not the Bonds are issued. Section 6. Commitment Conditional The adoption of this resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Corporation 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 than 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 Section 4 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 7. a er it passage Effective Date. This resolution shall be in full force and effect from and Review d for Administration: Adopted by the City Council June 1, 2015 Cit Attest Resolution No 15-075 -4- EXHIBIT A CITY OF ST. LOUIS PARK, MINNESOTA NOTICE OF PUBLIC HEARING ON THE APPROVAL OF A HOUSING PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT AND THE ISSUANCE OF REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED NOTICE IS HEREBY GIVEN that the City Council of the City of St. Louis Park, Minnesota (the "City") will hold a public hearing on Monday, July 6, 2015, at or after 7 30 p.m. at City Hall, 5005 Minnetonka Boulevard in the City, on a proposal that the City Council approve and authorize the issuance by the City of its revenue refunding bonds, in one or more series, as taxable or tax-exempt obligations (the `Bonds"), under Minnesota Statutes, Chapter 462C, as amended (the "Act"), for the benefit of Jones -Harrison Residence, a Minnesota nonprofit corporation (the "Corporation"). The proceeds of the Bonds, along with other available funds, will be used to (i) refund the outstanding Health Care Facilities Revenue Bonds (Jones -Harrison Residence Project), Series 2005 (the "Prior Bonds"), issued by the City of Minneapolis (the "City of Minneapolis") in the original aggregate principal amount of $14,030,000; (ii) fund a debt service reserve fund, and (iii) pay certain costs of issuance of the Bonds. The Corporation applied the proceeds of the Prior Bonds to (i) refinance the Corporation's 163 -bed skilled nursing facility and 57 -unit assisted living facility located at 3700 Cedar Lake Avenue in the City of Minneapolis (the "Project") through the redemption and prepayment of revenue obligations issued by the City of Minneapolis in 1998; (ii) finance various capital improvements to the assisted living facility; (iii) fund a debt service reserve fund; and (iv) pay costs of issuance The Project to be refinanced with the proceeds of the Bonds is owned and operated by the Corporation. Following the public hearing, the City Council will consider adoption of a resolution approving a housing program prepared in accordance with the requirements of the Act and approving the issuance of the Bonds. The aggregate face amount of the Bonds proposed to be issued to refinance the Project is presently estimated not to exceed $13,000,000. The Bonds will be issued by the City and will constitute a special, limited obligation of the City payable solely from the revenues expressly pledged to the payment thereof, and will not constitute a general or moral obligation of the City and will not be secured by the taxing power of the City or any assets or property of the City except interests in the Project that may be granted to the City in conjunction with the refinancing. Before issuing the Bonds, the City will enter into an agreement with the Corporation, whereby the Corporation will be obligated to make payments at least sufficient at all times to pay the principal of and interest on the Bonds when due. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the City Clerk prior to the date of the hearing set forth above Dated: [Date of publication] BY ORDER OF THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, MINNESOTA /s/ City Clerk City of St Louis Park, Minnesota