HomeMy WebLinkAbout86-153 - ADMIN Resolution - City Council - 1986/09/151?
RESOLUTION NUMBER
REPLACEMENT
86-153
RESOLUTION REAFFIRMING AUTHORIZATION
OF A PROJECT AND HOUSING PROGRAM
UNDER MINNESOTA STATUTES, CHAPTER 462C
MUNICIPAL HOUSING PROGRAMS) AND GIVING PRELIMINARY
AUTHORIZATION TO THE ISSUANCE OF
UNRATED MULTIFAMILY HOUSING REVENUE BONDS TO REFUND
1985 BONDS PREVIOUSLY ISSUED TO FINANCE THE PROJECT AND PROGRAM
BE IT RESOLVED, by the Council of the City of St. Louis
Park, Minnesota, as follows:
1. The Council has previously received a proposal from
Park Boulevard Housing Limited Partnership, a Minnesota limited
partnership (the "Company"), the general partners of which are
E.J. Plesko and Associates, Inc., a Florida corporation and
Bor-Son Investments Properties Corporation, a Minnesota
corporation, that the City undertake to finance a certain
multifamily rental housing project (the "Project") and financing
program for such Project as herein described, pursuant to Chapter
462C, Minnesota Statutes (the "Act"). On December 16, 1985,
the City Council authorized such Project and financing program
and, on December 18, 1985, issued its $17,000,000 Variable Rate
Demand Purchase Multifamily Housing Revenue Bonds, Series 1985
Park Boulevard Towers Project) (the "1985 Bonds"), to finance
such Project. The Project consists of the acquisition and
construction of a multifamily rental facility containing
approximately 206 units and related improvements including parking
facilities in the City.
2. The Company now desires to refund the 1985 Bonds through
the issuance by the City of its approximately $17,000,000
Multifamily Housing Development Revenue Bonds, Series 1986 (Park
Boulevard Towers Project) (the "Bonds"). It is proposed that
the proceeds of the Bonds be used by the Company to refund and
redeem the 1985 Bonds and that the proceeds of the 1985 Bonds
currently escrowed with the Trustee pursuant to that certain
Indenture of Trust dated as of December 1, 1985 (the "Indenture")
between the City and First Trust Company, Inc., be transferred
to the Construction Fund established in connection with the
Bonds and loaned to the Company to acquire and construct the
Project as previously approved by this City Council.
3. Piper, Jaffray & Hopwood Incorporated, the Underwriter
of the 1985 Bonds and the Underwriter with respect to the Bonds,
has entered into a preliminary agreement with the Company pursuant
to which it will undertake to market the Bonds on an unrated
basis.
4. The City has been advised by the Underwriter that
the security for repayment of the Bonds is expected to consist
of a Mortgage, Assignment of Rents and Leases, Security Agreement
and Fixture Financing Statement (the "Mortgage") executedbytheCompanyinfavoroftheTrusteeandbycertainlettersof
credit provided by the Company (the Mortgage and letters of
credit are hereinafter collectively referred to as the "Credit").
Neither the Bonds nor the Credit will be rated by a rating agency.
5. Pursuant to Section 4-10 of the Indenture, the City
must consent to the proposed unrated Credit arrangement and
to the unrated Bonds.
6. The City hereby consents to, and undertakes
preliminarily to issue, unrated Bonds to refund the 1985 Bonds,
and hereby approves the above proposed unrated Credit arrangement
for the Bonds, and authorizes and directs its staff
to take all actions necessary or desirable in connection with
issuance of the Bonds, subject to final approval by the City,
the Company and the Underwriter as to ultimate details of the
financing with the Bonds.
7. The Bonds shall be special, limited obligations of
the City and shall not constitute a charge, lien, or encumbrance,
legal or equitable, upon any property of the City except the
Project, and each Bond, when, as and if issued, shall recite
in substance that the Bond, including interest thereon, is payable
solely from the revenues received from the Project and property
pledged to the payment thereof, and shall not constitute a debt
of the City.
8. It is understood and agreed that the Company shall
indemnify the City against all liabilities, losses, damages,
costs and expenses (including attorneys' fees and expenses
incurred by the City) arising with respect to the Project or
the Bonds, all as to be more fully provided for and agreed to
by and between the Company and the City in a Bond Purchase
Agreement and the Loan Agreement to be entered into by such
parties with respect to the Bonds.
9. The Company will pay all expenses incurred by the
City in connection with the Bonds, including the fees and expenses
of the attorney to the City, all as more fully provided for
and agreed to in the aforementioned Bond Purchase Agreement
and Loan Agreement.
10. It is understood and agreed that this Resolution is
intended to constitute preliminary
approval only of the issuance
of the Bonds, and that the City Council will be required to
give final approval to the issuance of the Bonds at such later
time when the financing documents have been reviewed and approved
by the City and the attorney for the City.
Adopted by the City Council September 15, 1986
ATTEST:
Reviewed for Administration: Approved as to form and legality:
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