HomeMy WebLinkAbout86-102 - ADMIN Resolution - City Council - 1986/07/07 (2)RESOLUTION NO. 86- 102
RESOLUTION GRANTING AN EXTENSION
REGARDING THE ACQUISITION OF LAND AND
RECORDING OF A DECLARATION OF RESTRICTIVE COVENANTS
AGAINST SUCH LAND LOCATED IN THE CITY
ON WHICH A MULTIFAMILY RENTAL HOUSING
DEVELOPMENT WILL BE LOCATED
WHEREAS,
a) The City of St. Louis Park, Minnesota (the "City")
issued its Variable Rate Demand Purchase Multifamily Housing
Revenue Bonds, Series 1985 (Park Boulevard Towers Project) in
the principal amount of $17,000,000 on December 18, 1985 (the
Bonds"), in connection with which the City entered into an
Indenture of Trust (the "Indenture") dated as of December 1,
1985, by and between the City and First Trust Company, Inc.,
as Trustee, and a Loan Agreement (the "Loan Agreement") dated
as of December 1, 1985, between the City and Park Boulevard
Towers Limited Partnership (the "Borrower");
b) The proceeds of the Bonds were loaned to the Borrower
for the acquisition, coustruct.on and equipping of a multifamily
housing development (the "Project") approved by the City, all
as further described in the Indenture and the Loan Agreement;
c) Section 3-1(8) of the Indenture requires that the
Company must acquire the land on which the Project will be located
and record a Declaration of Restrictive Covenants (the
Declaration"), containing certain covenants pertaining to state
and federal requirements affecting use and operation of the
Project as a multifamily housing development, against such land
on or prior to July 1, 1986, unless the City, at the request
of the Borrower, extends such date at the request of the Borrower
and upon receipt by the City and the Trustee of an opinion of
Bond Counsel to the effect that such extension will not adversely
affect the tax exempt status of the Bonds;
d) Section 3.01(1) of the Loan Agreement similarly requires
that the Borrower must acquire the land and record the Declaration
against the land no later than July 1, 1986 unless such date
is extended by the Issuer at the request of the Borrower if
the City and the Trustee have received an opinion of bond counsel
to the effect that such extension will not adversely affect
the tax exempt status of the bonds;
e) The Housing and Redevelopment Authority of the City
approved an extension regarding acquisition of the land at its
meeting held on June 30, 1986;
f) The Borrower has requested, pursuant to a written
Request for Extension attached as Exhibit A hereto, that the
date prior to which the land Declaration must be recorded be
extended by the City, as Issuer of the Bonds, from July 1, 1986,
to September 1, 1986; and
g) Briggs and Morgan, Professional Association, Bond
Counsel, has advised the City and rendered an opinion, attached
as Exhibit B hereto, that granting such extension for acquiring
the land and recording the Declaration will not, by itself,
adversely affect the tax exempt status of the Bonds.
NOW THEREFORE, BE IT RESOLVED by the City Council of the
City of St. Louis Park, Minnesota, as follows:
1. Pursuant to Section 3-1(8) of the Indenture and Section
3.01(1) of the Loan Agreement, the City hereby approves the
Request for Extension and extends the date prior to which the
land must be acquired and the Declaration must be reco_ded against
the land on which the Project will be located from July 1, 1986,
to no later than September 1, 1986.
Adopted by the City Council July 7, 1986
Attest:
Reviewed for Administration:
P 7ola,., -
Approv-d as to form and le'ality:
ttorne