Loading...
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