89-2185 WHITE — `ITV CIERK COU11C11 �7 /� �''
PIPbK — . INANCE G I TY O SA I NT PA iT L �7( /)
CANARV — OEPARTMENT / 7(
BLUE —MAVOR File NO• '�!� /" ��
� Counci Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
Adopted by the C ty Council of the City of Saint
Paul, Minnesota this 5th day of December, 1989 .
COUNCIL MEMBERS
Yeas Nays ,� Requested by Department of:
Dimond
�� In Favo
Goswitz
Rettman
cr�.o:ea � _ Against BY
��
Wilson
Adopted hy Council: Date DEC 1 =� 1989 Form Approved b ity Attorney
Certified Yass Counci ,e re BY—
gy,
t�pproved Ylav • D� — s � �� Approv d yor for ubmissi to Council
(1
By
�, t �hXJ`---
p�,� D E C 2 3 1989
WHITE - CITV CLERK COUIICII Q(„// /J / rf'�
PI�K -4'INANCE GITY O SAINT PAUL
CANARV - DEPARTMENT /} ��/ J(�
BLUE - MAVOR File NO. �J / l��L�• _
1 ounc l Resolution ,�����
� ����
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLUTION R CITING A PROPOSAL FOR
REFINAN ING A MULTIFAMILY
HOUSING DE ELOPMENT THROUGH THE
ISSUANCE OF REF NDING BONDS, AUTHORIZiNG
THE PREPARATION F NECESSARY DOCUMENTS AND
MATERIALS I CONNECTION WITH THE
DEVELOP ENT AND THE BONDS
(WOODSTONE APARTMENTS PROJECT)
WHER�AS,
(a) Min esota Statutes, Chapter 462C
(the "Act" ) conf rs upon cities, or housing
and redevelopmen authorities or port
authorities auth rized by ordinance to
exercise on beha f of a city the powers
conferred by the Act, the power to issue
revenue bonds to finance a program for the
purposes of plan ing, administering, making or
purchasing loans with respect to one or more
multifamily hous ' ng developments within the
boundaries of th city;
COUNCIL MEMBERS Requested by Departmqnt o�
Yeas Nays �
Dimond T
�� [n Fav r
Goswitz
Rettman B
s�he;be� __ Against Y
Sonnen
Wilson
Form Approved b Attorney
Adopted by Council: Date
t
Certified Passed by Council Secretary BY
B}•
A►pproved by IVlavor. Date _ _ Approv M r bmiss n to Council
By
. . . �. � � ��- �i�s
(b) The Hou ing and Redevelopment
Authority of the ity of Saint Paul, Minnesota
(the "HRA" ) has b en designated, by ordinance,
to exercise, on b half of the City of Saint
Paul, Minnesota ( he "City" ) , the powers
conferred by Min sota Statutes, Section
462C. 01 to 462C. 0 (the "Act" ) ;
(c) By Res ution No. 280058, the City
Council of the Ci y of Saint Paul authorized
the HRA to issue its housing development
revenue bonds pu suant to the Act to finance a
multifamily hous ' g project (the "Concord
Green Project" , named as the "Woodstone
Project" ) , to be wned by Concord Green
Partnership, whi h partnership has
subsequently bee renamed Woodstone Limited
Partnership (the partnership being referred to
in this resoluti n as the "Developer" ) ;
(d) The H issued its $7 , 800,000
Variable Rate Mo thly Demand Bonds, Series
1984-D (Concord reen Project) (the "Prior
Bonds " ) pursuant to an Indenture of Trust
dated as of Sept mber 1, 1984 (the "Original
Indenture" ) betw en the HRA and First Trust
National Associa ion ( formerly, First Trust
Company of 5aint Paul) as trustee;
(e) The pr ceeds of the Prior Bonds were
used to acquire, construct and equip the
Woodstone Projec , to fund a reserve fund and
to pay the costs of authorization, issuance
and delivery of he Prior Bonds;
( f) The De eloper of the Woodstone
Project has now roposed to the HRA that it
should issue its refunding bonds (the
"Refunding Bonds' ) to refinance and refund the
Prior Bonds, and that the Refunding Bonds
should be issued in two separate series, one
series subordina e to the other series;
(g) The De eloper has retained Miller &
Schroeder Financ al, Inc . ( "Miller &
Schroeder" ) to a t as underwriter and
investment banke for the Refunding Bonds;
2
. . . G�� �9- �3/��"
(h) The Dev loper and Miller & Schroeder
have proposed ter s and conditions for the
Refunding Bonds ich require the City to
publish a notice escribing the proposal to
issue refunding nds, and to hold a public
hearing thereon; nd a public hearing on said
refunding bonds s held on December 5, 1989,
after notice was ublished, as required by
Minnesota Statut and federal income tax law,
at which public aring all those appearing
who desired to s ak were heard;
( i) The Mi esota Housing Finance Agency
approved the fin cing program for the Project
prior to the iss ance of the Prior Bonds, and
Minnesota Statut s, Chapter 462C does not
require that a n financing program be
submitted to or proved by the Minnesota
Housing Finance gency in connection with the
issuance of refu ding bonds;
( j ) No pub ic official of the City has
either a direct r indirect financial interest
in the Project, he Prior Bonds or the
Refunding Bonds, nor will any public official
either directly r indirectly benefit finan-
cially from the roject, the Prior Bonds or
the Refunding Bo ds .
NOW THEREFORE, BE IT ESOLVED by the City Council of the
City of Saint Paul, Minnes ta, as follows:
1 . The City her by preliminarily approves the
proposal of the Developer hat the HRA issue refunding bonds
(the "Refunding Bonds" ) to pay all of the outstanding
principal of and accrued i terest on the Prior Bonds through
their date of redemption ( hich date shall be no later than 90
days following the date of issuance of the Refunding Bonds)
pursuant to a financing ag eement or loan agreement between
the HR.A and the Developer elating to the issuance and sale of
the Refunding Bonds in a t tal principal amount not to exceed
the outstanding principal mount of the Prior Bonds �
( $7 ,700,000) , which Refund ng Bonds shall be issued pursuant
to the Act to refinance th Project; and the financing
agreement or loan agreemen may provide for the entire
interest of the Developer o be mortgaged for the benefit of
the purchasers of the Refu ding Bonds, or a trustee for the
3
. . . �. � ��- 03/�5
owner(s ) of the Refunding onds; and the City, acting by and
through the HRA, hereby un ertakes preliminarily to issue its
Refunding Bonds in accorda ce with such terms and conditions;
2 . The Refundin Bonds will be structured to be
issued in two series, one eries on a subordinated basis to
the other series;
3 . On the basis of information available to the
City it appears, and the C ty hereby finds : that the Project
constitutes a multi-family housing development within the
meaning of subdivision 5 o Section 462C. 02 of the Act and is
a multifamily development rimarily occupied by persons of low
or moderate income within he meaning of subdivision 2 of
Section 462C. 05 of the Act that the Project is primarily
occupied by persons of low and moderate income; the avail-
ability of the financing u der the Act and the willingness of
the City to furnish such f nancing has been a substantial
inducement to the Develope to undertake the Project, and that
the effect of the Project as been to provide additional
multi-family rental housin opportunities to residents of the
City, to assist in the red velopment of blighted and marginal
land and to promote more i tensive development and use of land
within the City; and that he refinancing of the Project
through the issuance of th Refunding Bonds by the HRA will
substantially improve the inancial viability of the Project
so as to enable its contin ed operation as decent, safe and
sanitary housing for perso s of low and moderate income;
4 . The proposal that the HRA refinance the Project
by the issuance of revenue refunding bonds is hereby given
preliminary approval by th City, subject to final approval by
the HRA, the Developer and the purchasers of the Refunding
Bonds as to ultimate detai s of the refinancing;
5 . Pursuant to hapter 72 , Saint Paul, Minnesota,
Administrative Code, the C ty hereby authorizes and directs
The Housing and Redevelopm nt Authority of the City of Saint
Paul, Minnesota (the "HRA" to issue the housing revenue
refunding bonds to refinan e the Project and to take all
actions necessary or desir ble in connection therewith, and no
further approval or author' zation of the City shall be
required;
6 . The Develope has agreed and it is hereby
determined that any and al costs incurred by the City or HRA
in connection with the ref 'nancing of the Project whether or
not the Refunding Bonds ar issued will be paid by the
Developer;
4
- r . . . . � �� � � � s
7 . Briggs and M rgan, Professional Association, as
Bond Counsel, and Miller & Schroeder, acting as investment
banker, are authorized to ssist in the preparation and
review of necessary docume ts relating to the refinancing of
the Project and the issuan e of the Refunding Bonds, to
consult with the City Atto ney, Developer and purchasers of
the Refunding Bonds (or tr stee for the purchasers of the
Refunding Bonds) as to the maturities, interest rates and
other terms and provisions of the Refunding Bonds and as to
the covenants and other pr visions of the necessary documents
and submit such documents o the HRA for final approval;
8 . Nothing in t is Resolution or the documents
prepared pursuant hereto s all authorize the expenditure of
any municipal funds on the Project other than the revenues
derived from the Project o otherwise granted to the City or
HRA for this purpose. The Refunding Bonds shall not consti-
tute a charge, lien or enc mbrance, legal or equitable, upon
any property or funds of t e City or HRA except the revenue
and proceeds pledged to t e payment thereof, nor shall the
City or HRA be subject to ny liability thereon. The holders
of the Refunding Bonds sha 1 never have the right to compel
any exercise of the taxing power of the City or HRA to pay the
outstanding principal on t e Refunding Bonds or the interest
thereon, or to enforce pa ent thereon against any property of
the City or HRA. The Refu ding Bonds shall recite in
substance that the Refundi g Bonds, including the interest
thereon, are payable solel from the revenues and proceeds
pledged to the payment the eof . The Refunding Bonds shall not
constitute a debt of the C ty or HRA within the meaning of any
constitutional or statutor limitation of indebtedness .
9 . In anticipat on of the issuance of the Refunding
Bonds to refinance the Pro 'ect, and in order that the
completion of the refinanc 'ng will not be unduly delayed when
approved, the Developer is hereby authorized to negotiate with
a corporate fiduciary to a t as trustee for the Refunding
Bonds or to negotiate with institutional purchasers of the
Bonds regarding the terms f the Bonds and the security
therefore. None of such a tions shall give rise to any
pecuniary or otlier lial�ili y on the part of the City or HFtA.
10 . Except to t e extent any earlier resolutions of
the City or the Authority ith respect to the Project and the
financing �therefor may be ' nconsistent with this resolution,
this resolution shall not e construed to amend, repeal or
vitiate such earlier resol tions .
5
� ��-- �/�s
DEPARTMENT/OFFlCE/OOIJNqL DATE INITIA D � �
�REEN SH Na. 4N�A�9
CONTACT PER80N R PHONE Q DEPARTMENT DIRECTOR �CRY COUNCIL
Gar P 1 t ' t Nu� Q�ATTORNEY �CITY q.ERK
MUST 8E ON COUNpL AOENDA BY(DATE) ROUTINO ��BUDOET DIRECfOR �F�N.d MQT.SERVICES DIR.
12 5 8 9 0 tiu►voR�oR�ssisr,w�n ❑
TOTAL#�OF 81QNATURE PAGE8 2 (CLIP AL tOCATIONS FOR 81GiNATUR� Oj�/(s/I�1/ ��� '�-O� �
ACTION REQUESTED:
Execution of City Council resolut' on for preliminary approval for HRA to
issue refunding bonds . The publi hearing on this action is scheduled
MENDATIONB:Approve(A)a ReJsct(R) ��� COUNCIL MITTEE/RESEARCH REPORT PTIONAL
_PLANNING COMMISSION _CIVIL SERVICE COMMi8810N ANAL'YST P � �' Y�
_CI8 COMMITTEE _
—�STAFF _ COMMEN IV U U � 'I I JV�
_DISTRICT COURT �p �g /�
8UPPORTS WNldi COUNpL 08JECTIVEr`9^��,VR�S V�"�C� �I�'� �=:�m.,., . ., a _
M�'"� Housin
INITIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,Whst,Whsn,Whsre,Why):
The City Council preliminary appr val resolution will authorize the HRA
to consider issuing refundi. bon s for the Woodstone Apartments project,
District 15 , in order to �tain a reduced bond interest rate.
ADVANTA4E3 IF APPROVED:
The Woodstone Apartments project an obtain a redur.ed bond interest rate,
and the project will be in a bett r financial position and avoid a potential
default.
DISADVANTAOES IF APPROVED:
None
ttECE�'^
N�01�
��T� CLE1�K
DISADVANTAQES IF NOT APPROVED:
Potential default of the project RECE�VE,(�
�C06�� ��c�e,�,�o Kesearch Centc�
CITY CLERK fVOV 2 919gg
TOTAL AMOUNT OF TRANSACTION = u p t0 7 7 O O O O CpgT/REVENUE BUDOETED(GRCLE ONE) YES NO N�A
FUNDIN�i SOURCE ACTIVITY NUMBER N/A
FlNANCIAL INFORMATION:(EXPLAIN) Revenue Bond�s d�ll
�
� �9 - ai� ,3-
:°�i
�
CI Y OF SAINT PAUL
iNTERDEPA TMENTAL MEMORANDUM
RECE��Fn
N4��19g9
Cl i'; CI.�RK
DATE: November 27, 1989
T0: A1 Olson, City Clerk
�
FROM: Gary Peltier
SUBJECT: WOODSTONE APTS. PROJECT
This is a follow-up to our recent c nversation regarding the subject. The
attached Notice of Public Hearing s published on 11/18/89, and sets the City
Council public hearing for 12/5/89.
Also attached is a copy of the Cit Council Resolution that is being processed
for signature and should reach you office this week. The Resolution should
be considered by the City Council the same date as the Public Hearing.
Please contact me at X3351 if ther are any questions.
GP/gh
' .. � . . Gf �9- �/�s
NOTICE O PIIBLIC HEARING
� ON A PROPOSAL FOR
HOUSING AND DEVELOPMENT ADTHORITY
OF THE CITY OF SAINT PADL, MINNESOTA
TO ISSIIE MIILTI AMILY HOOSING REVENiTE
REFUNDING BONDS RELATING TO AN EXISTING
MULTIFAMILY HOOSING DEVELOPMENT
(WOODSTONE ARTMENTS PROJECT)
Notice is hereby given that the City Council of the City
of Saint Paul, Minnesota, will meet in the Council Chambers
at the City Hall, 15 We t Kellogg Boulevard, Saint Paul,
Minnesota, at 9 : 00 o'clock a.m. on Tuesday, December 5, 1989,
to consider the proposal f Woodstone Limited Partnership, a
Minnesota limited partnersh ' p (the "Company" ) , that the Housing
and Redevelopment Autnority f the City of Saint Paul, Minnesota
(the "HRA" ) undertake the ' ssuance of refunding revenue bonds
in one or more series to provide money to refund and redeem
certain prior bonds issued by the HRA in 1984 to finance the
Project described belcw.
The Project, known as � oodstone Apartments, is a multifamily
rental housing facility co sisting of two buildings , each with
77 apartment units . The roject is located at 2335 StewGrt
Avenue in the City of Saint aul .
The maximum aggregate estimated principal amount of bonds
or other obligations to be issued to refund and redeem the prior
bonds issued for the Proje t is $7 , 700 , 000 . The bonds or other
obligations may be issued in one or more series . The Project
will continue to be owned a d operated by the Company. -
. . . . . � �� ��- �i�,s
The bonds or other ligations, if and when issued, will
not constitute a charge, ien or encumbrance upon any property
of the City of Saint Paul (the "City" ) or the HRA except the
Project, and such bonds r obligations will not be a charge
against the City' s or the RA' s general credit or taxing powers
but will be payable from s s to be paid by the Company pursuant
to a revenue agreement or ag eements.
Further information con erning the Project and the financing
program therefore may be obt ined from the offices of the Division
of Housing of the Department of Planning and Economic Development
of the City of Saint Paul, 2th Floor, City Hall Annex, 25 West
Fourth Street, Saint Paul, Minnesota 55102 (Telephone (612 )
228-3361 ) .
At tne time and place fixed for the Public Hearing, the
City Council of the City of Saint Paul will give all persons
who appear at the hearing an opportunity to express their views
with respect to the proposal. tvritten comments will be considered
if submitted at the above C ty offices on or before the date
of the hearing.
Dated this 18th day of No mber, 1989 .
B ORDER OF THE CITY COUNCIL
B /s/ Albert B. Olson
City Clerk
ARK>30 : 28 "
11 . 16 . 89
2
w�+�TE - C�7r�CLEwK
PINK - FINANCE CO{II�C1I
CANARY -06P�pTMCNr (iITY OF AINT PAUL
•lUE -MA�OR F,IC NO.
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLUTION RE ITING A PROPOSAL FOR
REFINANCI G A MULTIFAMILY
HOUSING DEVE OPMENT THROUGH THE
ISSUANCE OF REFU DING BONDS, AUTHORIZING
THE PREPARATION O NECESSARY DOCUMENTS AND
MATERIALS IN CONNECTION WITH THE
DEVELOPME T AND THE BONDS
(WOODSTONE PARTMENTS PROJECT)
WHER�AS,
(a) Minn sota Statutes, Chapter 462C
(the "Act" ) confe s upon cities, or housing
and redevelopment authorities or port
authorities autho ized by ordinance to
exercise on behal of a city the powers
conferred by the ct, the power to issue
revenue bonds to inance a program for the
purposes of plan 'ng, administering, making or
purchasing loans ith respect to one or more
multifamily hous ' ng developments within the
boundaries of th city;
COUNCIL MEMBERS Requested by Department of:
y� Nays
Dimond
Loeg [n Favo
Goswitz
Rettman B
�be1be� A gai n s t Y
Sonnen
W7son
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary By
B�
Approved by Navor: Oate Approved by Mayor for Submission to Council
(b) The Hous 'ng and Redevelopment
Authority of the C 'ty of Saint Paul, Minnesota
(the "HRA" ) has be n designated, by ordinance,
to exercise, on be alf of the City of Saint
Paul, Minnesota (t e "City" ) , the powers
conferred by Minn ota Statutes, Section
462C.01 to 462C.08 (the "Act" ) ;
(c) By Reso ution No. 280058, the City
Council of the Ci of Saint Paul authorized
the HRA to issue 'ts housing development
revenue bonds pur uant to the Act to finance a
multifamily housi g project (the "Concord
Green Project" , r named as the "Woodstone
Project" ) , to be wned by Concord Green
Partnership, whic partnership has
subsequently been renamed Woodstone Limited
Partnership (the artnership being referred to
in this resolutio as the "Developer" ) ;
(d) The HRA issued its $7 ,800, 000
Variable Rate Mon hly Demand Bonds, Series
1984-D (Concord G een Project) (the "Prior
Bonds" ) pursuant o an Indenture of Trust
dated as of Septe ber 1, 1984 (the "Original
Indenture" ) betwe n the HRA and First Trust
National Associat on ( formerly, First Trust
Company of Saint aul) as trustee;
(e) The pro eeds of the Prior Bonds were
used to acquire, onstruct and equip the
Woodstone Project to fund a reserve fund and
to pay the costs f authorization, issuance
and delivery of t e Prior Bonds;
� ( f) The Dev loper of the Woodstone
Project has now oposed to the HRA that it
should issue its efunding bonds (the
"Refunding Bonds" ) to refinance and refund the
Prior Bonds, and that the Refunding Bonds
should be issued in two separate series , one
series subordina e to the other series;
(g) The De eloper has retained Miller &
Schroeder Financ 'al, Inc . ( "Miller &
Schroeder" ) to a t as underwriter and
investment banke for the Refunding Bonds;
2
(h) The Dev loper and Miller & Schroeder
have proposed te s and conditions for the
Refunding Bonds w ich require the City to
publish a notice escribing the proposal to
issue refunding b nds, and to hold a public
hearing thereon; nd a public hearing on said
refunding bonds w s held on December 5, 1989,
after notice was ublished, as required by
Minnesota Statute and federal income tax law,
at which public h aring all those appearing
who desired to sp ak were heard;
( i) The Min esota Housing Finance Agency
approved the fina cing program for the Project
prior to the issu nce of the Prior Bonds, and
Minnesota Statute , Chapter 462C does not
require that a ne financing program be
submitted to or a proved by the Minnesota
Housing Finance A ency in connection with the
issuance of refun ing bonds;
( j ) No publ c official of the City has
either a direct o indirect financial interest
in the Project, t e Prior Bonds or the
. Refunding Bonds, or will any public official
either directly o indirectly benefit finan-
cially from the P oject, the Prior Bonds or
the Refunding Bon s .
NOW THEREFORE, BE IT R SOLVED by the City Council of the
City of Saint Paul, Minneso a, as follows :
1 . The City here y preliminarily approves the
proposal of the Developer t at the HRA issue refunding bonds
(the "Refunding Bonds " ) to ay all of the outstanding
principal of and accrued in erest on the Prior Bonds through
their date of redemption (w ich date shall be no later than 90
days following the date of ' ssuance of the Refunding Bonds)
pursuant to a financing agr ement or loan agreement between
the HRA and the Developer r lating to the issuance and sale of
the Refunding Bonds in a to al principal amount not to exceed
the outstanding principal a ount of the Prior Bonds
( $7 , 700, 000) , which Refundi g Bonds shall be issued pursuant
to the Act to refinance the Project; and the financing
agreement or loan agreement may provide for the entire
interest of the Developer t be mortgaged for the benefit of
the purchasers of the Refun ing Bonds, or a trustee for the
3
owner(s) of the Refunding B nds; and the City, acting by and
through the HRA, hereby und rtakes preliminarily to issue its
Refunding Bonds in accordan e with such terms and conditions;
2 . The Refunding Bonds will be structured to be
issued in two series, one s ries on a subordinated basis to
the other series;
3 . On the basis f information available to the
City it appears, and the Ci y hereby finds: that the Project
constitutes a multi-family ousing development within the
meaning of subdivision 5 of Section 462C. 02 of the Act and is
a multifamily development p imarily occupied by persons of low
or moderate income within t e meaning of subdivision 2 of
Section 462C.05 of the Act; that the Project is primarily
occupied by persons of low nd moderate income; the avail-
ability of the financing un er the Act and the willingness of
the City to furnish such fi ancing has been a substantial
inducement to the Developer to undertake the Project, and that
the effect of the Project h s been to provide additional
multi-family rental housing opportunities to residents of the
City, to assist in the rede elopment of blighted and marginal
land and to promote more i ensive development and use of land
within the City; and that t e refinancing of the Project
. through the issuance of th Refunding Bonds by the HRA will
substantially improve the financial viability of the Project
so as to enable its contin d operation as decent, safe and
sanitary housing for perso s of low and moderate income;
4 . The proposal that the HRA refinance the Project
by the issuance of revenue refunding bonds is hereby given
preliminary approval by th City, subject to final approval by
the HRA, the Developer and the purchasers of the Refunding �
Bonds as to ultimate detai s of the refinancing;
5 . Pursuant to hapter 72 , Saint Paul, Minnesota,
Administrative Code, the C 'ty hereby authorizes and directs
The Housing and Redevelopm nt Authority of the City of Saint
Paul, Minnesota (the "HRA" to issue the housing revenue
refunding bonds to refinan e the Project and to take all
actions necessary or desir ble in connection therewith, and no
further approval or author zation of the City shall be
required;
6 . The Develope has agreed and it is hereby
determined that any and al costs incurred by the City or HRA
in connection with the ref nancing of the Project whether or
not the Refunding Bonds ar issued will be paid by the
Developer;
4
7 . Briggs and Mor an, Professional Association, as
Bond Counsel, and Miller & S hroeder, acting as investment
banker, are authorized to as ist in the preparation and
review of necessary document relating to the refinancing of ___
the Project and the issuance of the Refunding Bonds, to
consult with the City Attorn y, Developer and purchasers of
the Refunding Bonds (or trus ee for the purchasers of the
Refunding Bonds) as to the m turities, interest rates and
other terms and provisions o the Refunding Bonds and as to
the covenants and other prov' sions of the necessary documents
and submit such documents to the HRA for final approval;
8. Nothing in th's Resolution or the documents
prepared pursuant hereto sh 11 authorize the expenditure of
any municipal funds on the roject other than the revenues
derived from the Project or otherwise granted to the City or
HRA for this purpose. The efunding Bonds shall not consti-
tute a charge, lien or encu brance, legal or equitable, upon
any property or funds of th City or HRA except the revenue
and proceeds pledged to th payment thereof, nor shall the
City or HRA be subject to a y liability thereon. The holders
of the Refunding Bonds shal never have the right to compel
any exercise of the taxing ower of the City or HRA to pay the
_ outstanding principal on th Refunding Bonds or the interest
thereon, or to enforce paym nt thereon against any property of
the City or HRA. The Refun ing Bonds shall recite in
substance that the Refundin Bonds, including the interest
thereon, are payable solely from the revAnues and proceeds
pledged to the payment ther of . The Refunding Bonds shall not
constitute a debt of the Ci y or HRA within the meaning of any
constitutional or statutory limitation of indebtedness.
9 . In anticipati n of the issuance of the Refunding
Bonds to refinance the Proj ct, and in order that the
completion of the refinanci g will not be unduly delayed when
approved, the Developer is ereby authorized to negotiate with
a corporate fiduciary to ac as trustee for the Refunding
Bonds or to negotiate with 'nstitutional purchasers of the
Bonds regarding the terms o the Bonds and the security
therefore. None of such ac ions shall give rise to any
pecuniary or other liabilit on the part of the City or HRA.
10 . Except to t extent any earlier resolutions of
. the City or the Authority ith respect to the Project and the
financing therefor may be 'nconsistent with this resolution,
this resolution shall not e construed to amend, repeal or
vitiate such earlier resol tions .
5